Browsing by Author "Tolani Akintunde FAKUNLE"

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    Institutional Quality, Globalization, and Income Inequality in Nigeria
    (Lead City University, 2023-12) Tolani Akintunde FAKUNLE
    Globalization can exacerbate income inequality, as those who can harness global opportunities benefit more than others. The unequal distribution of benefits from globalization can widen the gap between the rich and poor in Nigeria. Also, weak and ineffective institutions in Nigeria pose a significant challenge to addressing income inequality. Therefore, this research examines the interrelationship among globalization, institutions, and income inequality in Nigeria over the period 1985-2020. It investigates the role of institutions on globalization; the effect of globalization on income inequality; the extent to which institutions influence income inequality; and the moderating role of institutions in globalization-income inequality relations in Nigeria. Using the autoregressive distributed lag (ARDL) estimator, the findings showed that institutions do not have significant impact on globalization both in the short- and long-run. The result further indicates that institutions positively impacted income inequality both in the short and long run. Likewise, it showed that globalization have a direct effect on income inequality both in the short and long run. It implies that globalization and weak institutional quality exacerbate income inequality in Nigeria by concentrating economic benefits among a privileged few. In the short run, the study discovered that globalization and institutions have a positive marginal effect on income inequality in Nigeria. Intuitively, inadequate governance, corruption, and lack of regulatory mechanisms allow a disproportionate share of the gains from globalization to accrue to powerful interests, widening the income gap and hindering inclusive economic development. On the policy front, government should prioritize institution-building initiatives, focusing on strengthening governance, reducing corruption, and enhancing regulatory frameworks to ensure that the benefits of globalization are equitably shared across society. Keywords: Redistribution, KOF globalization index, governance, Gini index, Nigeria. Word Count: 260