Tourism, Globalization and Economic Growth in Nigeria

Abstract

This study investigates the impact of the nexus between tourism and globalization on economic growth in Nigeria. Secondary data on gross domestic product per capita, international tourism receipt, exchange rate and foreign direct investment were sourced from the World Development Indicators (WDI) of the World Bank while data on terms of trade and globalization index were sourced from Statistical Bulletin of the Central Bank of Nigeria and KOF Swiss Economic Institute Database respectively. Data collected were analyzed using econometrics techniques of autoregressive distributed lag (ARDL) model. The study finds that interactive effect of both tourism and globalization has a negative but insignificant impact on economic growth in Nigeria which implies that the tourism industry in Nigeria is largely underdeveloped and has failed to take advantage of increasing globalization while foreign direct investment and exchange rate significantly promote economic growth in Nigeria. The study concludes that the tourism industry in Nigeria is underdeveloped and has failed to harness the opportunities linked with globalization.