Entrepreneurship Skills And Economic Development Of Anambra State

Entrepreneurship Skills And Economic Development Of Anambra State (A Study Of Nnewi North Lga) 2010-2015

CHAPTER ONE

INTRODUCTION

  • Background of the study

Global dynamics have dramatically changed in the last few decades. Many countries in South East Asia and Latin America have become dominant in the exports of manufactured goods and are increasingly becoming key players in global economic environment. Unfortunately there exists a universal pessimism about Africa’s economic growth prospect. Botswana and South Africa remain exceptions simply because of their well calculated policies which direct revenue from diamond exports towards developing infrastructure and human capital. Nigeria is the Africa’s most populous country and its fourth largest economy. Ironically, even with the massive oil revenue accrued over the years, the country is categorized among the poorest in the world.

The problems of the Nigerian economy is structured in nature. The vast population of the country is made up small scale farmers and petty traders. Over time, the performance of the industrial sectors which is expected to create substantial job opportunities and serves as a link to primary sector has not been impressive. Due to low domestic productive capacity living conditions deteriorate. Poverty and unemployment increased while human capital and participation in international trade remain very low. This calls for the need to rethink the nations development strategy by looking inward to create new businesses and develop local talents.

Since the strength of an economy is measured by its physical and human resource endowment and how productively these resources are developed to produces goods and services, task of promoting entrepreneurship at all levels becomes paramount. This is especially so in a country where the unemployed people tend to rely on government and paid jobs rather than on their initiatives.

Today, large organizations have also recognized the need to promote entrepreneurship mind-set in order to explore new opportunities and to avoid complacency. This trend is encouraged by feet that corporate leader who would approach problems creatively and entrepreneurial and also strives on the management of change.

The purpose of this paper is to examine critical factors affecting the survival and growth of new business ventures in Nigeria using six states as reference points. Farmers and small business owners were asked about the activities of various government and institutional financing organs at Bungudu, Gwarzo, Isa, Nsukka, Isiakpo, Ekwisigo areas of Zamfara, Kano, Sokoto, Enugu, Rivers and Anambra States respectively. The goal is to provide a flat form for harmonized various enterprise policies and programmes which would hopefully make entrepreneurship development in the country more focused and result oriented. It is also the objective of this paper to challenges existing business as usual approach to business by individuals and organizational leadership. Perhaps this would enable them stretch their human creative faculties t innovate and grow new business ventures essential for achieving sustainable economic development. Beside utilizing contemporary literature, the paper draws insights South Asia experiences.

Anambra State us a state in South Eastern Nigeria. Its name is an anglicized capital and the seat of government is Awka, Onitsha and Nnewi are the biggest commercial and industrial cities, respectively.

The state’s theme is “Light of the Nation”. Boundaries are formed by Delta state to the west, Imo State and Rivers State of the South, Enugu State to the east and Kogi State to the North. The origin of the name is derived from the Anambra River (Omambala) which is a tributary of the famous River Niger.

The indigenous ethnic group in Anambra State are the Igbo (98% of population) and a small population of Igala (2% of the population) who live mainly in the North Western part of the state (3).

Anambnra is the eighth most populated state in the Federal Republic of Nigeria and the second most densely populated state in Nigeria after Lagos State. The stretch of more than 45km between Oba and Amorke contains a cluster of numerous thickly populated villages and small towns giving the area an estimated average density of 1,500 – 2,000 persons per square kilometer.

  • Statement of the problem

International Labour Organization (ILO) estimates that 300million young people are unemployed or underemployed and 80% of those youth live in developing or transition economics. Although the ILO estimates that 20% of the young unemployed have the potential to become entrepreneurs, less than 5% actually do (Huang, et al; 2010). Programs, such as the ILO’s Youth Business International Program and you win in Nigeria target youth. There seems some levels of agreement that entrepreneurial attribute is four (personality, skills, motivation and attitude) dimensional (Lumpkin and Edrogo, 2004). However, there seem no evidence as to the order of importance and integration of the above in the entrepreneurship development process for it to lead sustainable economic transformation and developments. This may have affected success levels of entrepreneurship development programmes especially in developing countries such as Nigeria. This paper is motivated by the need to empirically as critical success factors of entrepreneurship development.

For decades, one of the principle state and local economic development tools has been tax incentives. Every state offers incentives in one form or another to retain business and attract businesses from other states. According to one survey, 95 percent of U.S municipalities also use such incentives.

Some policy markers have expressed a desire to end this practice but fell stuck in an arms race. They pear they cannot unilaterally forgo incentives because others use them, so they create ever-increasing incentive packages in an effort to compete. Although some incentives may be economically justified in terms of jobs and productivity in the midst of an arms race it’s difficult to tell what is and is not effective in creating jobs.

One thing that is known is that this practice costs taxpayers billions of dollars each year. Estimates put the annual cost near 870 billion. Moreover, incentives targeting existing companies miss the economy’s real engine of job erection new and young businesses, which create nearly all net jobs in the united states, a fact that also holds true at this state and city levels.

Policymaker have heard those arguments before, but need ideas, not criticism. The Kamffman foundation hosted a conference of state legislations, mayors, researchers, and leading thinkers to discuss two themes related to incentives.

Firstly, how can incentive programs be improved to better promote economic growth? Secondly: what alternative strategies exist for promoting economic development through entrepreneurship?

  • Research Questions

In the course of this research, the following questions were generated for analysis.

  1. To what extent does entrepreneurship contribute to economic development of Anambra State?
  2. To what extent does entrepreneurship impact on employment creation in Anambra State?
  3. To what extent does entrepreneurship contribute to increased standard of living?
    • Purpose of the study

The general objective is to develop an entrepreneurship development model that ensures a progressive learning experience, through which beneficiaries are motivated to take socially and environmentally responsive entrepreneurial actions aimed at addressing economic problems of employment and income inequalities in their societies. Hence, the specific objectives include:-

  • To ascertain the role of entrepreneurship in economic development of Anambra State.
  • To find out the role of entrepreneurship in creation of employment.
  • To find out the role of entrepreneurship towards increased standard of living in Anambra State.
    • Significance of the study

Against this backdrop of this G.D.P observed in the Anambra State and the consequences on development prospects. The major significances of this work:

  • It is expected that the study will serve as literature review to other students.
  • Most importantly, it is envisaged that it should be useful to public policy analysts, particularly policy makers etc.
  • It will be of immense help to future researchers on the role of entrepreneurship in socio-economic development of the state.
    • Scope of the study

This research work covers a comprehensive analysis of the role of entrepreneurship in economic development of Anambra state. The research will also provide a brief history of origin of entrepreneurship in Nigeria. As the researcher limits its work to Nnewi North Local Government Area of Anambra State.

  • Limitation of the study

This work is by no means exhaustive but useful attempts to penetrate the core of the issue have been made. The researcher encountered many difficulties in the process of collecting data for his research. These problems invariably formed the basis for limitation of the study.

Firstly: time constraint affected a comprehension review of related literature on the subject after the study. Gathering of materials textbooks, journals etc for the review of literature were time consuming. The researcher being a student has other courses to cover and this had to apportion the time to meet the damage of other courses.

Secondly; the proximity of related literature materials also posed a problem. The researcher was impeded by necessary textbooks, magazine and journals for offered their downside to the study, human beings have never been easy to deal with especially when human behaviours are unpredictable. Some data and questionnaires were bluntly refused by the respondents. Finally, the research was based on the title money they could save. All these limitations, limited the validity of the finding and condition, the research would have been more retained without these constraints.

  • Definition of terms

ENTREPRENEURSHIP: This has been defined as the willingness and ability of an individual to seek out investment opportunities, establish and run an enterprise successfully.

ECONOMIC: Economic is a science which studies human behavior as a relationship between ends and scarce means which have alternative uses.

DEVELOPMENT: Development is a process of societal advancement, where improvement in the well being of people are generated through strong partnership between all sectors, corporate bodies and other groups in the society.

  • Organization of the study

The study was organized into five chapters, one introduced the study by giving the background information on the research problem, objectives, the scope and limitation of the study. Chapter two dealt with the review of relevant literature and the theoretical framework of farmers cooperative society. Chapter three discussed the research methodology adopted for the study and relevant justifications. Chapter four presented the finding on the farmers cooperative society and rural economic development. Chapter five also presented the conclusions drawn from the research finding and recommendations.

CHAPTER TWO

LITERATURE REVIEW AND THEORETICAL FRAMEWORK

2.0           LITERATURE REVIEW

                Although there is a vast literature on economic development, there is still no clarity as to its real meaning. This notwithstanding, it is widely agreed that development must be seeing as the general improvement in living conditions of people. It is not merely about the provision of basic necessities such as food, clothing and shelter, but also health, improvement of human capital and redistribution of wealth.

Nayyer, (2003) argues that conventional economic growth theory tends to emphasize increases in per capital income as a measure for development ignoring other essential indicators of development such as reduction in poverty, inequality and employment as well as improvement in quality of life.

Easterly, (1999) and Bartoli, (2000) argue that growth must always be associated with social and institutional progress. It must assume a human dimension which encompasses the enhancement of material well being, health, education and dignity of life. Nabunde, (2002) and Charper (2003) also claims that the most effective means of improving economics performance in poor countries is through industrialization and this cannot be possible without significant rise in the level of literacy and skills, investments and saving rate which would stimulate entrepreneurship and production. Hence, fostering growth require supporting investments and accumulation of human capital.

Although the world has recorded unprecedented economic progress in the last 50years especially in terms of growth in world’s output, capital accumulation and technological advancement, the progress achieved has been uneven between and within industrialized and non-industrialized nations. It is on this basis the advocates of this endogenous growth theory insist that government policy is fundamental in the process of influencing factors determining the long term rate of growth. Soro’s, (2000) observes that government has a unique role in fastering development since the conventional market mechanism are inadequate to cater for the needs and aspirations of the late comers that are essentially poor countries. Development crisis which is the generalized incapacity of an economy to generate the necessary environmental conditions for sustained improvement in the standard of living would persist unless effective intervention mechanisms are put in place (Stein, 2003). In this respect, we could argue that it is the responsibility of the governments to provide an integrated national policy that would faster this development of entrepreneurship in Nigeria. Achieving this task is essential for increased productivity, job creation, and improvement in living condition.

2.1           Entrepreneurship Development

                In today’s world where technological change, liberalization, outsourcing, and restructuring rule, the subject of entrepreneurship has gained greater interest. The discussions centered on what actually contribute entrepreneurship and how far it extends. The term entrepreneurship is derived from the French word entreprendre to undertake. This suggests that entrepreneurship is the process of undertaking activities concerned with identifying and exploiting business opportunities while assuming it’s associated risks. Entrepreneurship is about a kind of behavior that includes initiative taking, reorganizing economic activities and the acceptance of it’s risks (Shapero, 1975) it is important to note that entrepreneurial activities are universal and ca therefore be promoted even in societies that manifest low entrepreneurship activities.

Small enterprises in particular are central in achieving sustainable growth. They constitute about 90% of the business population in North America and they accounted for the most new jobs in the country (Kuratko and Hodyelts, 1998). Entrepreneurship involves taking chances, but new businesses do not emerge by accident (Eyelhoff, 2005). They are usually founded as a result of motivated entrepreneurship gaining access to resources and finding niches in opportunity structures. Hence, entrepreneurship could be seen as the process of identifying and exploiting unique business opportunities that stretch the creative capacities of both private and public organizations. Sue and Dan, (2000) argues that entrepreneurship is influenced by genetic power, family background and economic environment. Since economic environment could support or suppress entrepreneurship, governments world over undertake to develop means economic policies that focus mainly on providing access to resources and support services to individuals and organizations that display flair for expending their business horizons. Poverty among people is usually caused by inadequate income due to shrinking job opportunities as well as high businesses tend to add jobs faster than big companies because they are highly adaptable, innovative and responsive to new business and market challenges (Frese and Rarch, 2005). Thus, supporting entrepreneurs becomes a critical policy issue especially since those new businesses that do survive tend to expand employment and growth of the nations economy. The important question to be asked is why too few young businesses grow in meaningful ways? Bruno et al (1987) maintain that there are three categories of reason for high business failures; product/market problems, financial, difficulties and managerial problems.

This suggests that the responsibility for creating and growing new businesses does not rest entirely on government. Individuals and organizations are required to analyze key success factors in business environment and take personal responsibility for survival and growth of their own ventures. On its part, government is expected to provide adequate infrastructure and friendly policy guidelines.

2.1.2 Relationship between Entrepreneurship and Economic Development

The association of entrepreneurship and economic development of nations has long been recognized by economists of the past such as Jean Baptiste (1803) and Joseph Schumpter (1934): Small firms tend to employ more labour per unit of capital and require less per capital unit of output than do large one (Kuratko and Hodgetts, 1998). Thus, the creation of small businesses and growing the existing one’s is considered to be the fastest way to achieve economic growth. conventionally, ideas about how businesses ideas emerge in society have assumed that the process starts and ends with the individuals character traits (Kilby, 1988). This suggests that an entrepreneurship character is in-born. However, many argues that entrepreneurship, behavior could be stimulated through policy intervention (Chelland and Klinter, 1969). This is the reason why entrepreneurship in increasingly promoted in less developed countries.

There is probably no regime in Nigeria which at one time or another has to emphasized the development of small enterprises. For examples, the need for encouraging increased productivity and self-employment has been recognized since 1970s with formulation of the small scale enterprises promotion policy. Until now, government pronouncement on promoting small enterprises are not always translated into serious policy statements backed by effective implementation mechanisms. In fact, most of the programmes, introduced to assist small enterprises only reached a small portion of the total of small business population. In actual sense, policy makers were more concerned with the establishment of few large enterprises than developing small ones. This was what partly informed the import substitution industry (ISI) strategy of the late 1970s where huge sum of money was spent on unsustainable mammoth companies. For example, a number of automobile assembly, plants were established in various part of the country, many such as Fiat in Kano and Stoyre in Bauchi States have collapsed. Again, government is unable to improve infrastructure, security and general state of the economy which all have devastating effect on small business.

Of course, the inability of business owners to change ineffective traditional management practices and adopt innovative reforms also contribute significantly to their misfortune.

2.1.3   Problems of Small Enterprises in Nigeria            

                There are a number of problems limiting the growth of small and medium size businesses in Nigeria. Our survey reveals that most of the problems exist because of poor policy guidelines while others are attributed to the lack of imagination and expertise by the existing and potential entrepreneurs. Specifically, the problems border the neglect of new business opportunities poor infrastructure and insecurity, lack of government support, neglect difficulties faced by youth, problem of

Entrepreneurship Skills And Economic Development Of Anambra State

Positive and negative effects of globalization on the Nigerian economy

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MONETARY AND FISCAL POLICIES AS EFFICIENT TOOLS FOR ECONOMIC STABILITY WITH SPECIFIC TO CENTRAL BANK OFNIGERIA(AWKA-BRANCH

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The Positive and Negative Effects of Globalization on the Nigerian Economy.

The Positive and Negative Effects of Globalization on the Nigerian Economy.

CHAPTER TWO

LITERATURE REVIEW AND THEORETICAL FRAMEWORK

2.1 Literature Review

There has been a consensus among the scholars of the Third World extraction that globalization is not a new phenomenon. The new phase has however assumed new dimension to further undeveloped and entrench dependency in Africa. According to Stiglitz (2002:62), globalization is:- A new social architecture of cross-border human interactions – in which the integrity of the national territories state as a coherent political economy is eroded, as the functions of the state became re-organized to adjust the domestic economic and social policies…

Again, Nabudere (2000:16) sees globalization as an unequal process of capitalist development. He posits that uneven and unequal economic opportunities are characteristics of the present capital modernization. This process is reflected in the unequal integration and fragmentation of many communities, especially, what came to be called the “The World”, in the process f the unfolding economic, political, social and cultural activity.

More concretely, Ake (1994:22) views globalization as a March of capital all over the world to search for profits, a process reflected in the rich and power of MNCS. He asserts that; It is about growing structural differentiation and functional integration in the world economy; it is about growing interdependence across the globe; it is about the national-state coming under pressure from the surge of transnational phenomenon, about the emergence of a global mass culture driven by mass advertisement and technical advances in mass communication, (Ake, 1994:22-23)”.

The foregoing has shown that the roots of African underdevelopment and Dependency lie with the capitalist expansion globalization are therefore a phase in the process of this expansion. Hoogvelt (2001:68); submits that as an instrument of imperialism, globalization is linked systematically with social exclusion. This means that as globalization proceeds, more and segments of populations as well as whole areas and regions are being excluded from its benefits.

In the same vein, Nnoli (2000:173) consider globalization as imperialism. According to him, globalization is a dynamic phenomenon, which changes in accordance with the laws of capitalist expansion. Consequently, it has assumed different focus in the past such as slave trade, legitimate trade, colonialism and nee-colonialism today, it is simply globalization.

It is implicit therefore that globalization is a relation of domination and exploitation between nations and groups of nations. This relationship takes place at different levels of economic, political, social and so on. In this contribution, Oyebody (2002:48) maintains that the different economic and political strategies such as globalization, liberalization. Privatization, foreign aid and the activities of MNCS are instruments of under-developing and entrenching Dependency in Nigeria and the whole of the developing world. Continue reading The Positive and Negative Effects of Globalization on the Nigerian Economy.

Implication of globalization for the Nigerian economy

The Implication of Globalization for the Nigerian Economy

CHAPTER ONE

INTRODUCTION

Background to the Study

There have been phenomenal metamorphose in virtually all aspect of society the world over, Communication have become more rapid, working patterns are changing, markets for goods and services have transformed immensely and money can be moved freely and instantaneously from one country to another with little or no hitches at all. Again, the ace of change seems to have accelerated sharply since the end of the cold war and the emergence of the New World Order (NOW), characterized by unipolarity. This development is called “globalization”. Through the term is relatively new, the process is an old one. The globalization process has been defined by Camdessus (2001:2) as “The growing economic interdependence of countries worldwide through the increasing volume and variety of cross-border transactions in goods and services and of international flow of capital through the more rapid and widespread diffusion of technology” More so, Woodward (1996:16) sees globalization as the rapid integration of trade relations productive and investment decisions across the globe.

The economic agents who employ investment capital and technology around to take advantage of environments where their competitive edge can manifest in high returns to accomplish this.

Globalization is therefore a very complex phenomenon. In this light, Nnoli (2002:174) associates it with “the increasing concentration of power and influence over the world economy by groups of corporations, international financial institutions and countries”, globalization interfaces with variations, uncertainties and incompatibilities. Its manifestation and effects are not uniform and unpredictable.

Furthermore, the most important and unique feature of the current globalization according to (Khor, 2000:4), is “the globalization of national polices and policy making mechanisms”. This has therefore led to the erosion of national sovereignty and narrowed the ability of governments and people to make choices from options in economics and all other aspects of national life. Most developing countries have therefore seen their independence policy-making capacity eroded and have to adopt policies made by other entities which on balances have been detrimental to the countries conceived. In other words, the World Bank, International Monetary Fund (IMF) and World Trade Organization (WTO), have become major makers of an increasingly wide range of policies that were traditionally under the jurisdiction of national governments. Governments, especially of the developing countries, now have to implement policies that are in line the decisions are rules of these international financial institutions. This process of globalization has therefore created and perpetrated dependency in the former colonial territories.

The inescapable truth, according to Toyo (2000:10) is that “globalization is neo-colonialism”. The reason for such an assertion include that lack of tangible benefit to most developing countries like Nigeria, the economic looses and social dislocation, the growing inequalities of earth and opportunities arising from globalization and other problems associated with and made worst by the working of the global free market economy. The history of Nigeria’s political economy, on the other hand, explains to a larger extent how she participated in the globalized international system. As Okpe (2000:50) submits, Nigeria is marginally significant in the global economy. The reason for this is that the scope and magnitude of the crises of dependence and underdevelopment which faces the country has denied it the opportunity to take it rightfully place in the progress of humanity. This dependency status has therefore placed Nigeria into a tight corner where she can hardly reap the net benefits of globalization.

This work focuses generally on the process of globalization but specifically, as it affects the economy of Nigeria. In spite of the accelerated gains of economic globalization, the Nigeria economy seems not to be benefiting from the process, but rather perpetually dependent. This work therefore sees to investigate the problems and prospects of Nigeria economy in a globalized international system.

statement of the Problem

Globalization seen to the phenomenal increase in the socio-economic and political integration of nations of the world both nationally and supra-nationally, again, there has been an apparent celebration of the gains and benefits of globalization by its proponents in the countries of the North, but a contended by Scholars of the South, do not benefit significantly from the gains and opportunities of globalization.

There is no gain saying the fact that the Nigerian economy is in crises. The economy has been under developed, distorted and disarticulated by the same forces of capitalism, which are propagating globalization today. The economy lacks the capacity to compete favourably and adequately in the globalized economic system.        The researcher is therefore constrained to ask;

  1. What does globalization mean to a developing national like Nigeria?
  2. What is the nature of economic relations in the global economic system?
  3. Has Nigeria participated significantly in the global economic system?
  4. Has Nigeria made the sustained independent economic policies under globalization?
  5. What is the impact of globalization on Nigeria?
  6. How can Nigeria become a significant stakeholder in the globalization process?

The effort in this research work is to answers to the above questions which constitute work is to answers to the above questions which constitute our problem.

Objective of the Study

The purpose of every scientific research is to discover new data even to investigate an already know fact; and to add to the existing knowledge. Thus it is only when the researcher has come to terms with himself about what he wants to do that the objectives of this study is to examine the positive and or negative effects of globalize on the Nigerian economy. Specifically, the study will among other things;

  1. Examine the nature and character of the current economic globalization.
  2. Examine the implication of globalization for the Nigerian economy. Examine how best Nigeria can minimize costs and maximize the benefits of globalization.
  • Explain globalization as the same process that has underdeveloped Nigeria and created dependency in Nigeria since colonialism.
  1. Contribute to the existing knowledge and literature about the nature and character of globalization as it affects Nigeria.

Research Questions

It is usual in a scientific research to make a tentative proposition or hypotheses about the empirical relationship between the variables. Such an informed guess or conjecture provides a clear guide for the collection of data that may agree or disagree with the hypothesis. This will also help to provide a focused research. This will also help to provide a focused research. More so, the independent variable in this research is globalization, while the dependent variable is the Nigerian Economy.

Globalization is an imperialist policy meant to further underdeveloped poor countries like Nigeria.

Nigeria’s participation in the global economic system has been insignificant and marginal. Nigeria have not been able to make and sustain independent economic policies under globalization. Globalization has created and perpetrated a dependent economy in Nigeria. These propositions will guide the researcher to streamline the collection of data that will address the research problem.

Significance of the Study

The pervasive nature and character of globalization and its glorification to the status of a panacea especially by the developed countries of the North has made it more interesting as a case study. Globalization has its tentacles in almost all dimensions of human life. Thus for a nation to be termed developed in this epoch such development and growth will be measured by how the nation accepts and adapts to the principles of globalization.

The significance of this work is therefore underscored by its objective to answer the questions posed in our statement of the problem. This is so because the question will identify economic problems of Nigeria and the answers and solutions proffered will help in solving them. Again, the work is significant because it draws attention to the subtle nature of globalization and the deepening economic underdevelopment and dependency perpetuated by globalization.

The work is also important because the recommendations made will be useful to policy makers especially on how to face inescapable economic reality. The study is also significant due to the fact that it add to the existing literature on globalization and the Nigeria economy especially on how the two relate.

Finally, the study will help other researchers in carrying out further studies in the areas by providing them with background information.

Scope and Limitations of the Study

This study is focused on the globalization process as it affects the Nigeria economy. It will examine the strengths, weakness, and opportunities and threats of the Nigerian economy in a globalized economic order. By the mid 1980s, Nigeria embarked on the IMF and World Bank Imposed Structural Adjustment Programme (SAP), as a result, economic policies in Nigeria are tailored along the guidelines of these Bretton Woods Institutions. In this light, this study will cover the Nigeria economy from 1986 to 2006, the period under which Nigeria has been under serious economic crises.

Research Methodology   

This research work relies mainly on secondary sources of data. These sources will provide relevant information from textbooks, magazines Academic Journals, Newspapers, Internet, material and unpublished works. This method of data collection is known as content analysis. It entrails the review of works written by scholars, policy makers etc. All secondary data gathered will be reviewed and analyzed in conformity their relevance to the subject.

Conceptual Clarification

  1. Dependency

Dependency is submitted by Offing (1980:53), is a situation that the history of colonial imperialism has left and that modern imperialism creates in underdeveloped countries. He also asserts that dependency is a conditioning situation in which the specifics histories of development and underdevelopment transpire in various societies. To Hoogvelt (2001:38), dependency is created as a result of penetration by colonial capital. Thus a distorted structure which would reproduce overall economic stagnation and extreme pauperization of the masses for all times. Consequently, dependency implies that the development alternatives open to the dependent nation are defined and limited by its integration into the functions within the market. Thus the dependent nations must make choices in a situation in which they do not set the terms nor parameters of choices. In Ake’s (1981:55) perspective, an economy is dependent to the extent that its position and relations to other economies in the international system and the articulation of its internal structure make it incapable of auto-centric development.

  1. Development

According to Ake (1996:125), development is the “process by which people create and recreate themselves and their own choices and values”. More so, Nonsin (2001:52) asserts that development in this direction entails fundamental changes in the institutional and ideological apparatus of society and the strengthening of these so that members of society would develop the capacity for autonomous and efficient management of their affairs for their own welfare and happiness.

  • Economy

The economy of all counties, according to Onwuka and Idehai (1996:80) refers to the complex of individuals and organization which produces goods and services at an ever increasing tempo, except in time of crises, thereby leading to the satisfaction of wants.

  1. Globalization

Globalization is defined as increasing integration of nation’s economics with the rest of the world. According to Shonekan (2000:23), its features are economic integration through trade and capital flows (Investment) increasing adoption of common relations between sovereign nations. Afolayan (2002:23), see globalization as the intensification of global interconnectedness and intensification”. This blurs national borders and policies in the shadow of global relations. It implies that globalization is a process in which the world’s   countries and their economics are cross–border economic activity; it is not only the integration of world economics but other dimensions of world life, technology, governance, social development and culture across national borders.

Globalization seems to be slipper and elusive concept. This is because it is used to refer variously to a process, a policy marketing strategy, a predicament or even an ideology. Thus it is not a single process but a complex processes, sometimes overlapping and interlocking processes but also at times contradicting and oppositions ones. To Ohmae (1989:29), globalization is a borderless world that, it does not only refer to the tendency of traditional political borders, based on national and state boundaries to become permeable, it also implies that divisions between people previously separated by time and space have become less significant and are sometimes entirely relevant. Scholter (2000:19) argued that globalization is linked to the growth of supra-territorial relations between people, a reconfiguration of social space in which territory matters less because an increasing rage of connections have a trans-border character.

Organization of the Chapters

Chapter one consists of the background, statement of the problem, objectives of the study, research questions, significance of the study, scope and limitations of the study, research methodology, conceptual clarification and organization of chapters. Chapter two contains the literature review on globalization and dependency in Nigeria, and theoretical framework. Chapter three talked about the Nigerian state, and the state of Nigerian economy. Chapter four discuss the nature and characters of economic, globalization and economic reforms in Nigeria between 1999 and 2006, partnership for African development (NEPAD) and Nigerian economic development, effects of globalization on Nigerian economy while chapter five contains summary, conclusion and recommendations of the study.

 

Assessment of the Impact of Foreign Direct Investment on the Nigerian economy

Assessment of the Impact of Foreign Direct Investment on the Nigerian economy

ABSTRACT

This study examines the possible impact and relationship between Foreign Direct Investment, and Economic Growth in Nigeria. Data used for this study were sourced from annual accounts and statistical bulletin of the Central Bank of Nigeria (CBN). The scope covers a period of 20 years (1990 – 2010) both years inclusive. Regression analysis of ordinary Least Square ((OLS) was used in analyzing the data. The study concluded that there is a positive relationship between direct foreign investment and gross domestic product (GDP). The result further showed that one naira increase in the value of direct foreign investment (FDI) will lead to N22.79 increase in GDP. The value of co-efficient of determination (r2) is 71%, showing that only 71% change in GDP has been explained by FDI, Interest Rate and Inflation Rate while the remaining 29% is unexplained by the model. This supports a positive relationship between GDP and FDI. The study recommends the need for maintaining a steady economic growth and low inflation, increased investment in human capital development to build the stock of capital available in the countr Continue reading Assessment of the Impact of Foreign Direct Investment on the Nigerian economy