Globalization and Economic Growth: A Case Study in A Few Developing Countries (1981-2022)

Globalization has become an integral part of the contemporary economic landscape, shaping the destinies of nations, and influencing their socio-economic development. This research paper investigates the economic effects of globalization on developing countries to find a possible correlation between global interconnectedness and growth. The research aims to uncover an approximate quantitative impact of globalization on the economic performance of developing countries. By utilizing empirical data from a diverse set of nations, the study seeks to identify patterns, trends, and correlations that provide insights into the dynamics of globalization. The research accomplishes this by employing a log-linear regression model that has been used in existing literature for some isolated cases. The study focuses on three key economic indicators: Real Gross Domestic Product (RGDP), Foreign Direct Investment (FDI), and Trade Openness (TRO). The methodology involves constructing a log-linear regression model to analyze the intricate relationships between RGDP, FDI, and Trade Openness. 8 countries from various parts of the world were selected for the study and data was collected for RGDP, FDI and TRO for each of them on which regression analysis was performed. Data was collected from the year 1981 to 2022, providing more than the required number of observations to perform time series analysis. The findings of this study reveal a high positive correlation between the proxies of globalization and growth. This paper is expected to contribute to the ongoing discourse on the role of globalization in shaping the economic trajectories of developing countries as it is the first to extend the application of an existing model to a wider and more generalized set of countries.