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Exploring Interlinks between Globalization and Governance: A Panel Data Evidence

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  • Nadeem, Muhammad
  • Hayat, Muhammad Azmat
  • Nazir, Rabia

Abstract

Globalization has always remained a fiery issue among academia and researchers due to lack of consensus on this subject. A potential unresolved issue about globalization is its impact on governance and quality of domestic institutions. The present study is an attempt to explore the relationship between globalization and governance in a panel of 91 countries covering time period from 1984 to 2011. Panel fixed effect model and Generalized Method of Moments (GMM) have been applied for the analysis. Results divulge that globalization has negative and statistically significant effect on governance. Thus, the present study recommends that globalization, if direly needed, must be espoused with a great caution. An effective and efficient liberalization policy is integral to reap benefits of globalization.

Suggested Citation

  • Nadeem, Muhammad & Hayat, Muhammad Azmat & Nazir, Rabia, 2014. "Exploring Interlinks between Globalization and Governance: A Panel Data Evidence," MPRA Paper 61337, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:61337
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    2. Salma Karim & Md. Qamruzzaman & Ishrat Jahan, 2023. "Nexus between Government Debt, Globalization, FDI, Renewable Energy, and Institutional Quality in Bangladesh," International Journal of Energy Economics and Policy, Econjournals, vol. 13(3), pages 443-456, May.

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    More about this item

    Keywords

    Globalization; Governance; Panel fixed effect; GMM;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • F60 - International Economics - - Economic Impacts of Globalization - - - General
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General

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