An Analysis of the Industrial Sector of Nigeria in This Era of Globalization

Abstract

The significance of the industrial sector is undeniable in any economy, and therefore, its development and survival is expedient to economic growth and development. This study tries to examine the industrial sector of Nigeria in a globalized world. Ordinary Least Square of regression analysis was used to examine the impact of globalization on the industrial sector of Nigeria using time series data spanning from 1981-2015, with economic openness as a proxy to globalization and industry value added as a measure of industrial sector performance. The period under study was sectioned into two, 1981-1994 (the period under which Nigeria's degree of openness was as low as 0-1) and 1995-2015 (when the degree of openness drastically increased and remained at a high range between 4 and 31). Regression results revealed a positive but insignificant impact exerted by economic openness on industry value added, in both sessions under review. The study recommended that industrial policy measure must be put in place and properly executed, the education system needs to be more technical and practical towards the generation of well educated citizens with appreciable technical know-how to promote innovation, elevate our technological base, and help the nation keep up with global trends in order to benefit more from globalization.