ABSTRACT
Globalization defines the multiplicity of processes and networks that tend to integrate economic, technological, political and socio-cultural activities across the world, globalization has been encouraged by improvements in electronic processes especially the worldwide web. It widens markets for goods, services and finance; many economies have taken advantages of globalized environments to improve themselves while others have not. This work examines the impact of globalization and the Financial System on economic growth in Nigeria in-between 1981 - 2013. The Gross Domestic Product was used as index for the economy, thus its dynamics were defined as growth, while six independent variables; exchange rate, money supply, market capitalization, trade openness, foreign direct investments and value of transaction were proxies for the Nigerian financial system and globalization. The study showed that Nigeria was yet to significantly benefit from globalization, with R2 = 53.8, while the adjusted R = 29.5 percent. Nigeria will need to effectively diversify its exports and provide a congenial environment for the attraction and retention of foreign investments, in order to fully benefit the gains of globalization, a phenomenon that has come to stay at least for the moment.The paper will assist Nigeria and other developing nations to properly position themselves in order to reap from the benefit of economic globalization.
Keywords
Globalisation, Financial System; Economic Growth