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Does Globalization Hinder or Incentive Industrialization? Empirical Evidence from Turkiye and Poland

Author

Listed:
  • Cengiz Orhan

    (Çukurova University, Pozanti Vocational School, Department of Accounting and Taxation, Pozanti-Adana/Turkiye)

  • Parlińska Agnieszka

    (SGGW Warsaw University of Life Sciences Institute of Economy and Finances, Warsaw, Poland)

Abstract

Research background Globalization has provided both turmoil and opportunities for most developing countries, as well as Turkiye and Poland. It brings about structural transformation in both countries. Purpose This paper investigates the effect of economic globalization on industrialization in Turkiye and Poland through annual data covering 1995–2022. Research methodology The paper performs fully modified ordinary least squares (FMOLS), dynamic ordinary least squares (DOLS), canonical cointegrating regression (CCR) estimators, and the Toda-Yamamoto causality test. Results The empirical results indicate that foreign direct investment (FDI) inward negatively affects manufacturing value-added (MVA), whereas the labour force positively affects it in Turkiye. However, trade openness has an insignificantly positive influence on MVA. Furthermore, FDI, trade openness, and the labour force significantly and positively affect MVA in Poland. Besides, the Toda-Yamamoto causality test results vary for Turkiye and Poland. Novelty The work’s originality is examining and comparing the role of trade openness and FDI separately on MVA for Turkiye and Poland. Moreover, this study performs three estimators (FMOLS, DOLS, and CCR) to obtain robust results and investigate the causality relationship among variables for both countries.

Suggested Citation

  • Cengiz Orhan & Parlińska Agnieszka, 2025. "Does Globalization Hinder or Incentive Industrialization? Empirical Evidence from Turkiye and Poland," Folia Oeconomica Stetinensia, Sciendo, vol. 25(2), pages 48-76.
    • Handle: RePEc:vrs:foeste:v:25:y:2025:i:2:p:48-76:n:1003
    DOI: 10.2478/foli-2025-0022
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    Keywords

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    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
    • F62 - International Economics - - Economic Impacts of Globalization - - - Macroeconomic Impacts

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