ABSTRACT

The study investigated the effect of globalization and balance of payment on the Nigerian economic growth for the period 1985-2014. Time series data on foreign direct investment, foreign portfolio investment, trade openness, external debt service ratio and balance of payment was used to capture globalization. The techniques of Estimation employed in the study include Ordinary Least Square, Augmented Dickey Fuller (ADF) test, and Johansen Co-integration test using E-views statistical package. The results showed that the time series data were found to be stationary at levels and there exist an insignificant long run relationship between globalization and economic growth in Nigeria. Greater effort should be geared towards integration of foreign direct investment through greater foreign participation in the stock market which could be achieved by greater openness to trade. Government authorities and policy makers should come up with policies that are investment friendly and should make sure that external debts must be contracted solely for economic reasons and not for social or political reasons. This is to avoid accumulation of external debt stock overtime and prevent an obscuring of the motive behind external debt