GLOBALISATION AND DEVELOPMENT OF MANUFACTURING ORGANISATIONS IN SOUTH EAST OF NIGERIA

Abstract

This work was carried out to (1) find out how foreign direct investment affects working capital of manufacturing industries in the South East of Nigeria; and (2) ascertain the effect of global value chains on the culture of business investment in manufacturing industries in the South East of Nigeria. For this study, a survey research approach was used, and copies of the questionnaire were sent to employees at several industrial enterprises in South East Nigeria. The acquired data was analysed using simple percentages, and the hypotheses were evaluated using t-tests. This was accomplished by coding the items and inserting them into the Statistical Package for Social Sciences (SPSS) software version 22 to completely analyse the data. The result of the findings revealed that foreign direct investment has a significant effect on the working capital of manufacturing industries in South East Nigeria (this becomes the fact as t-table at 74.500 > (6.314) with p 0.05). Another result showed that global value chains have a significant effect on the culture of business investment in manufacturing industries in South East Nigeria. (This becomes the fact that t-table at 17.306 > (2.353) with p 0.05). The study concluded that globalisation has significantly affected the manufacturing sector in South East Nigeria. Therefore, the study recommended that there should be a clear guideline in government policy regarding priority sectors requiring foreign investment in Nigeria, among which sectors such as manufacturing should be prioritised for development. The spill-over effects of developing these sectors would be multiple increases in employment rates, GDP and production, food supply and raw materials for industry (especially the local ones), foreign exchange earnings, etc. Also, to increase global value chain involvement in manufacturing enterprises in Nigeria's South East and other regions of the country, the government should design a technologically robust manufacturing development policy that captures the global value chain in accordance with international standards.