Effects of Globalization on the Development of Domestic Manufacturing Industries in Oyo State

This research focuses on assessing how globalization has influenced the growth and development of domestic manufacturing industries in Oyo State, Nigeria. Globalization, which involves the growing connection among countries through trade, investment, and technology exchange, has brought both progress and setbacks to developing economies. The study examined how trade openness, foreign direct investment (FDI), technology transfer, and international competition affect the performance of local manufacturers. The population of the study comprised 200 domestic manufacturing firms in Oyo State, from which 50 were sampled. A mixed-methods approach was adopted, employing both structured questionnaires and interviews to gather data. The findings revealed that while globalization enhances market access, promotes technology adoption, and encourages competition, it also exposes local industries to cheaper imports, infrastructural constraints, and policy inconsistencies. These challenges often limit the competitiveness and sustainability of Nigerian manufacturers in global markets. The study concludes that while globalization provides numerous opportunities for growth, domestic industries in Nigeria are yet to fully benefit due to infrastructural limitations and a high level of import dependence. It recommends that government policies should focus on improving local production capacity, developing infrastructure, and offering financial and technical assistance to manufacturers to enable them to compete effectively in the global marketplace. Keywords: Globalization, Manufacturing, Trade Openness, FDI, Technology Transfer, Oyo State