THE IMPACT OF GLOBALIZATION AND INCOME INEQUALITY AND ECONOMIC GROWTH: THE CASE OF NIGERIA

This study explores the impat of globalization and income inequality on Nigeria's economic growth from 2000 to 2023. As Nigeria’s economy becomes more interconnected globally, the influence of globalization on its growth trajectory raises questions about the distribution of economic benefits, particularly regarding income inequality. The study aims to assess whether globalization promotes inclusive * economic growth or deepens income inequality, which can negatively affect sustainable development. Using secondary data from reputable institutions like the Central Bank of Nigeria and the National Bureau of Statistics, the research employs econometric tools such as the Autoregressive Distributed Lag (ARDL) model and Granger causality tests. Findings show that globalization positively influences Nigeria's economic growth, though the effect is not statistically significant. Income inequality, however, presents a negative impact on growth. Additionally, foreign direct investment (FDI) and inflation demonstrate varying influences, with FDI surprisingly exhibiting a negative effect on growth. Granger causality analysis indicates a unidiectional relationship where globalization drives growth, but economic growth does not significantly affect globalization. The study concludes that while globalization fosters growth, addressing structural inequalities and optimizing FDI policies are crucial for maximizing its benefits. Recommendations include fostering inclusive policies, enhancing globalization's impact through improved infrastructure, and creating a favorable environment for both foreign and domestic investments.