Abstract The research work seeks to examine the impact of globalization on economic growth through foreign direct investment. The study utilized the secondary data source in collecting data for this research. The data were analyzed using regression method of analysis and according to the result, globalization variables such as economic globalization, social globalization and political globalization, have significant impact on the foreign direct investment. The study went further to recommend among others, that there is need to develop stable political and economic environment and improve on the critical infrastructure of the country, increase the productivity level and manufacturing operations within the country in order to attract more investors and strengthen foreign direct investment in the country. CHAPTER ONE INTRODUCTION 1.1 Background to the study One of the widely pursued macroeconomic goals of an economy has been the attainment of high and sustained output growth (economic growth) with low inflation. Globalization has over the years been widely celebrated as one of the keys to economic growth and development. The integration of the world economy through the progressive globalization of trade and finance has reached unprecedented level most especially in the recent times, surpassing the pre-world war I peak (Lall, et al. 2007). The international competitiveness brought by the new wave of globalization has brought tremendous progress to the world economy. The global economy has continued to witness vigorous expansion since the first half of 2007 with growth running above 5 percent (IMF, 2007). In the face of the new wave of globalization, no country wishes to be left out in the distribution of the benefits resulting from trade, foreign investment and financial integration (international capital flows). However, Adesoye, Ajike and Maku (2015) have argued forcefully that many highly globalized developing countries have not been able to profit from globalization and are still facing the same problems they have been facing for many decades. For instance, Nigeria had embraced globalization since the 1980s with the expectation that enhanced free trade, competitiveness, financial integration, foreign investment and technological advancement would ensure the achievement of rapid growth of the economy. Contrary to expectation, the growth pattern of the economy since the 1980s has been very disappointing with poverty incidence escalating. According to the World Bank (2002) report, about 65 percent of the Nigeria population lives below the poverty line, with Nigeria being ranked among the poorest countries of the world, despite its vast economic potentials as well as its attendant natural resources. Globalization is often blamed for the rising incidence of poverty and inequality observed in most third world countries and regions. This therefore raises a fundamental question on the distributional effects of globalization which is often polarized between two points of view. While the proponents of globalization argue that globalization leads to a rising tide of income which raises all boats, the opposing group argues that although globalization may improve the overall income level, its benefits are not equally shared amongst individual countries of the world. However, while there is a general consensus that the third world countries (Nigeria inclusive) can benefit from integration with the global economy, an unresolved issue is that of why the global poverty and stunted growth remain predominantly a third world phenomenon. 1.2 Statement Of Problem Foreign direct investment has posed some negative impacts on local firms. Especially in the area of competitive existence, foreign firms have displaced local firms being that their mode of operation and their organizational goals and strategies vary differently when focusing on the local market. Hostile acquisitions of firm happen so as to reduce competition and allow the foreign investors flood the market with their products (Akinmulegun, 2012). Again, the influx of foreign firms or investors contribute to the increase in level of entrepreneurship in the case of developing the capital market of a country and capital-demanding production at the detriment of the nation\u2019s Gross Domestic Product (GDP) (Makola, Mosima, p. 2003). Local firms tend to restructure their production, streamline their operations and introduce new technologies in order to beat the competitiveness of their coexistence with the foreign firm, thereby constituting a reduction in the amount of jobs for the employees. The increased level of unemployment especially relates to the acquisition (i.e purchasing of ownership interest in the indigenous firms) while on the contrary, the foreign investors increase their employment level in form of green field investment (Neary, 2009). The government of some countries, in the intention of attracting new foreign investors, may either discontinue or abandon their support for the local firms that are associated with high prospective expectations in concession to the foreign investors, all in the interest of improving the country\u2019s industrial growth. This favors economic globalization, but has a negative impact on the host country (UNCTAD, 2006). In every aspect of comparison on business performance, it is confirmed that companies with foreign direct investment possess much more technically developed strategy of operation and hence, performs higher than the local companies. The world economy is characterized by high dependence on one or two major sources of revenue according by most countries according to their country\u2019s abundance. For instance, in Africa, Nigeria\u2019s dependency on crude oil majorly has seriously contributed to maximizing the benefits of globalization though, but has in part led to slow growth in other product and investments and has caused a low development of other sectors and other industrial sectors of their economies. However, with the increasing degradation of trade barriers in developing countries, as a result of globalization, industrialized countries have thus benefited from trade liberalization to seek markets to unload their cheap inefficient local industries leading to a slow growth rate. In most of those countries, the low output of the sector they appreciate more, happen because of the decline on foreign trade as a result of the demand for domestically produced goods due to weak importation of goods and cost of production in the sector. These problems have led companies to leave their industries making many citizens unemployed (Dunning, 1985). This research therefore intends to solve these problems and to determine how world economy\u2019s interest can be protected in the process of globalization. 1.3 Objective of the study The main objective of this this paper examines the impact of globalization on economic growth in Nigeria through foreign direct investment (FDI). Specifically it aims: 1.4 Research Questions 1.5 Significance Of the study The significance of this study can be viewed from the following perspectives. One main significance of this study is that when completed, it would serve as a bridge for the gap that have been created between where previous works on this subject area stopped and today. This study would be significant in the sense that it\u2019s finding would serve as a base and framework for future researchers to carry out further studies in the field of knowledge under study. The outcome of this research is hoped to be of immense use to students of management and international studies etc. since it contains information on globalization and foreign direct investment. The significance of this study would include all those who would benefit from and use the information from the study like researchers or students of organizational behaviour, performance management, productivity, human resources and business administration. The Non-Governmental Organizations (NGO\u2019s); foreign investors, business development managers, financial managers\/planers are not left out as beneficiaries of this research. They would benefit from the research findings given that this study permits top management to identify superior areas of investments at the global spheres. 1.6 Hypotheses of the study H0: There is a positive significant impact of financial globalization on foreign direct investment H1: There is no positive significant impact of financial globalization on foreign direct investment Hypothesis two Ho: There is a positive significant impact of political globalization on foreign direct investment. H1:
There is no positive significant impact of political globalization on foreign direct investment Hypothesis three H0: There is a positive significant impact of social globalization on foreign direct investment H1: There is no positive significant impact of social globalization on foreign direct investment 1.7 Scope of the study The research work examined the relationship between globalization and economic growth, to show the ways through which globalization can enhance economic growth in Nigeria between (1970-2018). It will use the indicators of globalization such as political, financial and social globalization in relation to the indicator of economic growth such as foreign direct investment (FDI) in Nigeria over the years stated above. It uses a time series data from 1970 to 2018 covering a period of (48) years. This time period was chosen because within this time period conscious effort was made towards economic growth. The data for the study are reports from National Bureau of Statistic (NBS) and Central Bank of Nigeria (CBN) of various years and other sources.