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The Impact of Globalization on Economic Growth

Author

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  • Yung-Hsiang Ying

    (Institute of Economics, National Sun Yat-sen University, Taiwan, Address: No. 70, Lienhai Rd., Kaohsiung 80424 Taiwan, R.O.C.)

  • Koyin Chang

    (Department of Healthcare Information and Management, Ming Chuan University.)

  • Chen-Hsun LEE

    (Department of Money and Banking, National Kaohsiung First University of Science and Technology.)

Abstract

This paper applies panel data analysis to examine the influence of short-run dynamics and long-run equilibrium relationships between globalization and the growth of ASEAN countries between 1970 and 2008. We divided globalization into three categories to investigate its impact on economic growth. We revisited the issue of identifying the global determinants of economic growth using panel cointegration tests, which fully supports the contention that globalization has a strong integrated relationship with economic growth. Using panel fully-modified OLS (FMOLS), we determined that the elasticity of economic growth with respect to economic globalization is 1.48, indicating that economic globalization has a significantly positive influence on economic growth. However, our results also show that social globalization has a negative influence on economic growth, while political globalization has a non-significant negative effect.

Suggested Citation

  • Yung-Hsiang Ying & Koyin Chang & Chen-Hsun LEE, 2014. "The Impact of Globalization on Economic Growth," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(2), pages 25-34, June.
    • Handle: RePEc:rjr:romjef:v::y:2014:i:2:p:25-34
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    More about this item

    Keywords

    panel cointegration tests; political globalization; social globalization; economic globalization;
    All these keywords.

    JEL classification:

    • F02 - International Economics - - General - - - International Economic Order and Integration
    • F40 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - General

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