Globalization And Poverty In Nigeria

The research approaches the study from two angles. First, it uses a cross-country investigation of 51 African countries. Second, an individual country-level examination of Nigeria is carried out. The Large-N analysis uses aggregate data to study the effect of globalization on poverty. The within-case analysis of Nigeria’s uses micro-level data to evaluate globalization’s influence on poverty. The unit of analysis is the country year. The sample size is 53 African countries, with a period from 2002 to 2012. The explanatory (independent) variable is globalization. The KOF Index on globalization conceptualized it as a “process that erodes national boundaries, integrates national economies, cultures, technologies, governance and produces …show more content…
576). Data come from the KOF Index on Globalization. The KOF index on globalization includes three sub-indexes. These are economic, social, and political globalizations. The study uses the economic globalization Index (excluding social and political dimensions). The economic globalization index comprises two scopes; trade flows and trade restrictions. The study uses the data on the trade flows, which generates statistics on trade, FDI, and portfolio investment. Trade is configured as a number of a state’s exports and imports, portfolio investment as “amount of a country’s stock of assets and liabilities, normalized by gross domestic product”, income and capital outflows are included as a proxy for the degree at which a nation engages foreign labor and capital in production. The second index is …show more content…
There is a high level of disagreement among scholars regarding how to measure world poverty. Scholars tend to criticize the World Bank’s $1 dollar a day poverty benchmark. They argue that “poverty is a multidimensional concept that should not be reduced to a monetary measure of purchasing power”, that the measure is too narrow to capture the needed nuances inherent in poverty estimations (Bergh & Nilsson, 2011, p. 5). Second, concerns arise that there is possibly no better way to estimate poverty as “absolute purchasing power that is comparable across both time and space when relative prices vary over time and between countries” (ibid, p.5). This study measures absolute poverty as “the headcount index calculated for a poverty line of one PPP dollar per day from the World Bank (2010)” (Bergh & Nilsson, 2011, p. 5). Harrison believes that the headcount measure of absolute poverty gets to the nuances because it specified the proportion of the populace “with consumption or income per person below the poverty line. The headcount is reported either as a percentage (the incidence of poverty) or as the number of individuals who are poor” (Harrison, 2007, p.