Growth Effects of a Comprehensive Measure of Globalization with Country Specific Time Series Data
AbstractMany studies have estimated the growth effects of globalization where globalization was measured with a few economic variables, ignoring its social and political dimensions. Recently Dreher (2006) has developed a comprehensive measure of globalization with several variables from the economic, political and social sectors. He showed, with the panel data methods, that globalization has positive growth effect implying that countries with higher globalization grow faster. We argue that five year average growth rates, used in many panel data studies, are inadequate proxies for the unobservable steady state growth rate (SSGR). Using the Dreher indices we extend the Solow (1956) model to derive country specific estimates of SSGRs for Singapore, Malaysia, Thailand, India and the Philippines. Our results show that countries with higher levels of globalization have higher SSGRs but the growth effects on SSGRs are smaller than in many studies.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 7917.
Date of creation: 25 Mar 2008
Date of revision:
Globalization; Solow Model; Country Specific Steady State Growth Rates;
Other versions of this item:
- B. Bhaskara Rao & Artur Tamazian & Krishna Chaitanya Vadlamannati, 2011. "Growth effects of a comprehensive measure of globalization with country-specific time series data," Applied Economics, Taylor & Francis Journals, Taylor & Francis Journals, vol. 43(5), pages 551-568.
- O11 - Economic Development, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
- O10 - Economic Development, Technological Change, and Growth - - Economic Development - - - General
- O30 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - General
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