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Globalization, Democratization and Economic Growth of East Asia

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  • Jai S. Mah

Abstract

This paper examines the causality among globalization, democratization and economic growth of four East Asian economies. A small-sample cointegration test is employed. The error-correction model shows that domestic investment causes economic growth in the case of Korea, Taiwan and Thailand. Foreign direct investment (FDI) inflows influence the economic growth of Malaysia and Taiwan positively, while there is no evidence suggesting that exports cause economic growth in four economies. There is no evidence that oppression of political freedom leads to economic growth in any of these economies. The current paper reveals that democratization is not caused by economic growth.

Suggested Citation

  • Jai S. Mah, 2011. "Globalization, Democratization and Economic Growth of East Asia," International Area Studies Review, Center for International Area Studies, Hankuk University of Foreign Studies, vol. 14(3), pages 91-105, September.
    • Handle: RePEc:sae:intare:v:14:y:2011:i:3:p:91-105
    DOI: 10.1177/223386591101400304
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    More about this item

    Keywords

    globalization; democratization; economic growth; East Asia; JEL classification codes: F43; 043;
    All these keywords.

    JEL classification:

    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies

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