Relationship Between Globalization And Growth

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Numerous studies have been carried out to validate the theoretical relationship outlined by different authors whose work has been reviewed above. Many interesting and important findings are made by different authors who have empirically analyzed the relationship between globalization and growth from different part of the world. These studies are reviewed below in two sections. First discusses the work of those authors who carried out their analysis while mainly focusing on the developed parts of the world. Second part explore the findings from the developing countries which are quite many and significant. A few most relevant work studies are reviewed in this section. 2.1.2.1 Evidence from the Developed Countries The review on empirical analysis…show more content…
The estimation is carried out by pedronis panel cointegration technique to evaluate the causal relationship between globalization and its economic, social and political dimensions and growth. The empirical evidence shows weak short run causality but in long run unidirectional causality from the globalization to growth can be observed. The beneficial effect of globalization on growth is further supported by Leita (2012). This study investigates the determinants of growth for United State of America between the year 1995 to 2008 by using the fixed effect and Generalized Method of Moments approach. The model uses intra industry trade, foreign direct investment and economic, social and political globalization as the determinant of growth. The empirical analysis showed the positive impact of these determinants on…show more content…
Ho and Jorgenson (1997) examine the growth impact of trade openness of US by using a dynamic general equilibrium model over the time period 1947 to 1985. The result shows a positive impact of openness on growth. To prove the growth effects of globalization for the developed countries of Asia, Tan (2012) investigates the relationship between openness and growth for Singapore for the 1965 to 2009 time period. For the estimation OLS technique is applied, which shows a positive impact of openness on growth. Tsegaye (2014) explores the casualty between trade and economic growth in South Korea by vector error correction model over the time period. Trade openness is measured by taking export and import separately. The result shows long run uni-directional causal relation between export and growth while bi direction relationship between import and growth. More over this study emphasize on export and import led growth hypothesis for South Korea. From the above studies we can see the concrete empirical evidence that trade openness plays a vital role in boosting growth of an economy. Capital Inflows and

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