The Impact of Globalisation on Economic Growth: the Case of Visegrad Countries

• Autorzy: Daniel Francois Meyer
• Języki publikacji: EN

Abstrakty

EN

The process of globalisation has been accelerating over the last few decades. The majority of scholars opine that globalisation and the opening of the global economy have more benefits than drawbacks. The objective of this paper was to assess the situation for the Visegrad group of countries, based on the fact that these countries have a history of closed economies due to their past, and to analyse the relationship between economic globalisation and economic growth in those countries from 1990 to 2019. The methodology utilised is quantitative in nature, and various econometric methods were used to assess the long and short-run relationships between the two variables with economic growth as the dependent variable. Two control variables were also included in the study, namely domestic investment and consumer price index (CPI). The results from the analysis confirmed the long-run relationship between all the variables, with economic globalisation being a significant and positive predictor of economic growth, while domestic investment also drives economic growth with both variables having similar coefficients of between 0.43 to 0.79. The short-run results via Granger causality tests indicated that economic globalisation causes economic growth while investment and economic growth have a bi-directional causality. From the results, it is clear that the economies of the four countries have been substantially opened over the last three decades, which has led to relatively high levels of growth. The countries have excellent locations within the European Union and have benefitted as a result. (original abstract)

Słowa kluczowe

EN

Globalization; Economic growth; Investment; Consumer price index (CPI)

PL

Globalizacja; Wzrost gospodarczy; Inwestycje; Indeks cen konsumpcyjnych

• Czasopismo: Forum Scientiae Oeconomia
• Rocznik: 2020
• Tom: 8
• Numer: nr 2
• Strony: 25--36

Twórcy

autor

Daniel Francois Meyer

• North-West University, South Africa

Bibliografia

• Afzal, M. (2007), The impact of globalization on Economic Growth of Pakistan, The Pakistan Development Review, 46(4), 723-734.
• Barry, H. (2010), Globalization and economic growth in Sub-Saharan Africa, Gettysburg Economic Review, 4(1), 42-86.
• Borensztein, E., De Gregorio, J., Lee, J.W. (1998), How does foreign direct investment affect economic growth? Journal of International Economics, 45, 115-135. DOI: 10.3386/w5057
• Chang, C.P., Lee, C.C. (2010), Globalization and economic growth: A political economy analysis for OECD countries, Global Economic Review, 39(2), 151-173. https://doi.org/10.1080/1226508X.2010.483835
• Chang, C.P., Lee, C.C. (2011), The effect of globalization and political party on economic growth: Panel data analysis of former communist countries and European OECD members,Eastern European Economics,49(6), 5-26. https://doi.org/10.2753/EEE0012-8775490601
• De Melo, J., Gourdon, J., Maystre, N. (2008), Openness, inequality and poverty: Endowments matter, World Bank Policy Research Working Paper No. 3981.
• Dollar, D., Kraay, A. (2002), Growth is good for the poor, Journal of Economic Growth, 7, 195-225. https://doi.org/10.1023/A:1020139631000
• Dreher, A. (2006), Does globalization affect growth? Empirical evidence from a New Index, Applied Economics, 6, 1091-1110. DOI: 10.1080/00036840500392078
• Edwards, S. (1998), Openness, productivity and growth: What do we really know? The Economic Journal, 108, 383-398. https://doi.org/10.1111/1468-0297.00293
• Gibescu, O. (2010), Does the gross fixed capital formation represent a factor for supporting the economic growth? Retrieved from: https://mpra.ub.unimuenchen.de/50135/ (accessed 24 May 2020).
• Gözgör, G., Can, M. (2017), Causal linkages among the product diversification of exports, economic globalization and economic growth,Review of Development Economics,21(3), 888-908. https://doi.org/10.1111/rode.12301
• Grossman, G.M., Helpman, E. (1991), Endogenous product cycles, The Economic Journal, 101, 1214-1229. https://doi.org/10.2307/2234437
• Grossman, G., Helpman, E. (2015), Globalization and growth,American Economic Review, 105(5), 100-104. DOI: 10.1257/aer.p20151068
• Kilic, C. (2015), Effects of globalization on economic growth: Panel data analysis for developing countries,Petroleum-Gas University of Ploiesti Bulletin, Technical Series, 67(1).
• Krugman, P. (1993), International finance and economic development, in: A. Giovannini (Ed.), Finance and development: Issues and experience (pp. 11-24), Cambridge: Cambridge University Press.
• Leităo, N.C. (2012), Economic growth, globalization and trade, Management Research and Practice, 4(3), 18-24.
• Meraj, M. (2013), Impact of globalization and trade openness on economic growth in Bangladesh, Ritsumeikan Journal of Asia Pacific Studies, 32, 40-50.
• Meyer, D.F., Sanusi, K.A. (2019), A causality analysis of the relationships between gross fixed capital formation, economic growth and employment in South Africa, Studia Universitatis Babes-Bolyai Oeconomica, 64(1), 33-44. DOI: 10.2478/subboec-2019-0003
• Polasek, W., Sellner, R. (2011), Does globalization affect regional growth? Evidence for NUTS-2 Regions in EU-27, Institute for Advanced Studies, Economics Series 266, Vienna.
• Rao, B.B., Tamazian, A., Krisha, V.C. (2011), Growth effects of a comprehensive measure of globalization with country-specific time series data, Applied Economics, 43(5), 551-568. https://doi.org/10.1080/00036840802534476
• Ray, S. (2012), Globalization and economic growth in India: A Granger causality approach,Journal of Policy and Globalization, 2, 18-30.
• Rodriguez, F., Rodrik, D. (2000), Trade policy and economic growth: A skeptic's guide to the cross-national evidence, NBER Macroeconomics Annual, 15, 261-325. DOI: 10.3386/w7081
• Sachs, J., Warner, A.,Åslund, A., Fischer, S. (1995), Economic reform and the process of global integration, Brookings Papers on Economic Activity, 1-118. DOI: 10.2307/2534573
• Salifou, C.K., Haq, I.U. (2017), Tourism, globalization and economic growth: A panel cointegration analysis for selected West African States,Current Issues in Tourism,20(6), 664-667. https://doi.org/10.1080/13683500.2016.1175421
• Samimi, P., Lim, G.C., Buang, A.A. (2011), Globalization measurement: Notes on common globalization indexes, Knowledge Management, Economics and Information Technology, 1(7), 1-20.
• Samimi, P., Jenatabadi, H.S. (2014), Globalization and economic growth: Empirical evidence on the role of complementarities, PLOS ONE, 9(4), 1-7. https://doi.org/10.1371/journal.pone.0087824
• Gygli, S., Haelg, F., Potrafke, N., Sturm, J. (2019), The KOF globalisation index - revisited, Review of International Organizations, 14(3), 543- 574. DOI: 10.1007/s11558-019-09344-2
• Shaikh, F.M., Shah, M.A. (2008), Impact of globalization on Pakistan's economy by using CGE Model, International Conference on Applied Economics - ICOAE, 839-845.
• Umaru, A.H., Ahmadu, A., Musa, S. (2013), Globalization and its impact on the performance of the Nigerian economy, Interdisciplinary Journal of Research in Business, 2(8), 1-16.
• World Bank. (2020). Development indicators, retrieved from: https://www.google.com/search?q=world+bank+data&oq=world&aqs=chrome.1.69i57j69i59l2j69i60j69i61j69i60j69i65l2.3257j0j8&sourceid=chrome&ie=UTF-8 (accessed 20 May 2020).
• Zerrin, K., Dumrul, Y. (2018), The impact of globalization on economic growth: Empirical evidence from the Turkey,International Journal of Economics and Financial Issues,8(5), 115.

Identyfikatory

DOI

10.23762/FSO _VOL 8_NO2_2