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Does Globalization Affect Growth?

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  • Axel Dreher

    (Mannheim University)

Abstract

The paper presents an index of globalization covering its three main dimensions: economic integration, social integration, and political integration. Using panel data for 123 countries in 1970-2000 the effects of the overall index of globalization as well as sub-indexes constructed to measure the single dimensions on economic growth are analyzed empirically. The results show that globalization promotes growth - but not to an extent necessary to reduce poverty on a large scale. The dimensions most robustly related with growth refer to actual economic flows and restrictions in developed countries. Although less robustly, information flows also promote growth whereas political integration has no effect.

Suggested Citation

  • Axel Dreher, 2002. "Does Globalization Affect Growth?," Development and Comp Systems 0210004, University Library of Munich, Germany, revised 16 Jun 2003.
    • Handle: RePEc:wpa:wuwpdc:0210004
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    More about this item

    Keywords

    Globalization; Growth;

    JEL classification:

    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies

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