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The Impact of Globalization on the Economic Development of Developing Countries

Author

Listed:
  • Forte, Rosa

    (University of Porto, Portugal; CEF.UP)

  • Costa, Daniel

    (Universidade do Porto)

Abstract

Globalization is a defining feature of the contemporary world, and its impact on economic growth has been extensively researched. However, the relationship between globalization and economic development, particularly for developing countries, is still heatedly debated. Empirical studies are scarce, and some of them are based on outdated data or have a limited geographical scope. Therefore, the aim of this study was to analyze the impact of globalization on the economic development of 134 developing countries from 2000 to 2019. The results obtained through a fixed effects model confirm that regardless of the proxy used, such as the KOF Globalization Index and its three subdimensions, globalization has a positive relationship with economic development measured by the Human Development Index (HDI). Results also highlight other factors that affect HDI, such as GDP and infant mortality rate. These findings provide valuable insights into the impact of globalization on economic development in developing countries.

Suggested Citation

  • Forte, Rosa & Costa, Daniel, 2024. "The Impact of Globalization on the Economic Development of Developing Countries," Journal of Economic Development, The Economic Research Institute, Chung-Ang University, vol. 49(4), pages 119-146, December.
    • Handle: RePEc:ris:jecdev:0103
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    More about this item

    Keywords

    Globalization; Economic Development; Developing Countries; Economic Growth; KOF Globalization Index; Human Development Index;
    All these keywords.

    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • P50 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems - - - General
    • Z10 - Other Special Topics - - Cultural Economics - - - General

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