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Globalization, Literacy Levels, and Economic Development

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  • Bhargava, Alok

Abstract

This paper estimated models for GDP growth rates, poverty levels, and inequality measures for the period 1990?2000 using data on 54 developing countries at five-yearly intervals. Issues of globalization were investigated by analysing the differential effects of the countries? exports and imports and by postulating trans-logarithmic models that allow for non-linear effects of literacy levels and measures of openness. The main findings were that literacy rates affected growth rates in a quadratic manner and countries with higher literacy were more likely to benefit from globalization. Second, the model for growth rates showed non-linear and differential effects of the export/GDP and import/GDP ratios. Third, the models indicated that population health indicators such as life expectancy were important predictors of GDP growth rates. Fourth, models for poverty measures showed that poverty was not directly affected by globalization indicators. Finally, the model for Gini coefficients indicated significant effects of ?medium? and ?high? skilled labour work force, with higher proportions of high-skilled labour implying greater inequality.

Suggested Citation

  • Bhargava, Alok, 2008. "Globalization, Literacy Levels, and Economic Development," WIDER Working Paper Series 004, World Institute for Development Economic Research (UNU-WIDER).
  • Handle: RePEc:unu:wpaper:rp2008-04
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    File URL: http://www.wider.unu.edu/sites/default/files/rp2008-04.pdf
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    References listed on IDEAS

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    1. Ann Harrison, 2007. "Globalization and Poverty," NBER Books, National Bureau of Economic Research, Inc, number harr06-1, January.
    2. Alok Bhargava & J. D. Sargan, 2006. "Estimating Dynamic Random Effects Models From Panel Data Covering Short Time Periods," World Scientific Book Chapters,in: Econometrics, Statistics And Computational Approaches In Food And Health Sciences, chapter 1, pages 3-27 World Scientific Publishing Co. Pte. Ltd..
    3. Alok Bhargava & Dean T. Jamison & Lawrence J. Lau & Christopher J. L. Murray, 2006. "Modeling the effects of health on economic growth," World Scientific Book Chapters,in: Econometrics, Statistics And Computational Approaches In Food And Health Sciences, chapter 20, pages 269-286 World Scientific Publishing Co. Pte. Ltd..
    4. Kim Jong-Il & Lau Lawrence J., 1994. "The Sources of Economic Growth of the East Asian Newly Industrialized Countries," Journal of the Japanese and International Economies, Elsevier, vol. 8(3), pages 235-271, September.
    5. Christensen, Laurits R & Jorgenson, Dale W & Lau, Lawrence J, 1973. "Transcendental Logarithmic Production Frontiers," The Review of Economics and Statistics, MIT Press, vol. 55(1), pages 28-45, February.
    6. Alok Bhargava, 2006. "Stochastic specification and the international GDP series," World Scientific Book Chapters,in: Econometrics, Statistics And Computational Approaches In Food And Health Sciences, chapter 19, pages 255-268 World Scientific Publishing Co. Pte. Ltd..
    7. Barro, Robert J & Lee, Jong-Wha, 2001. "International Data on Educational Attainment: Updates and Implications," Oxford Economic Papers, Oxford University Press, vol. 53(3), pages 541-563, July.
    8. L Alan Winters, 2004. "Trade Liberalisation and Economic Performance: An Overview," Economic Journal, Royal Economic Society, vol. 114(493), pages 4-21, February.
    9. Alok Bhargava, 2006. "Identification and Panel Data Models with Endogenous Regressors," World Scientific Book Chapters,in: Econometrics, Statistics And Computational Approaches In Food And Health Sciences, chapter 3, pages 49-60 World Scientific Publishing Co. Pte. Ltd..
    10. David Dollar & Aart Kraay, 2004. "Trade, Growth, and Poverty," Economic Journal, Royal Economic Society, vol. 114(493), pages 22-49, February.
    11. Amelia Santos-Paulino & A. P. Thirlwall, 2004. "The impact of trade liberalisation on exports, imports and the balance of payments of developing countries," Economic Journal, Royal Economic Society, vol. 114(493), pages 50-72, February.
    12. Hendry, David F. & Pagan, Adrian R. & Sargan, J.Denis, 1984. "Dynamic specification," Handbook of Econometrics,in: Z. Griliches† & M. D. Intriligator (ed.), Handbook of Econometrics, edition 1, volume 2, chapter 18, pages 1023-1100 Elsevier.
    13. Francisco Rodriguez & Dani Rodrik, 2001. "Trade Policy and Economic Growth: A Skeptic's Guide to the Cross-National Evidence," NBER Chapters,in: NBER Macroeconomics Annual 2000, Volume 15, pages 261-338 National Bureau of Economic Research, Inc.
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    Cited by:

    1. MILOSAN, Alexandru-Ioan, 2013. "China'S Bubble," Academica Science Journal, Economica Series, Dimitrie Cantemir University, Faculty of Economical Science, vol. 2(3), pages 34-39, December.
    2. Farooq, Mubashar, 2016. "Impact of Quality Education and Tangibles of Education system (constructs of globalization) on Literacy Improvement- An analysis of Public-Private Educational Sector of Southern Punjab Region of Pakis," MPRA Paper 74861, University Library of Munich, Germany, revised 01 Nov 2016.
    3. Barakat, Bilal, 2016. "Improving Adult Literacy Without Improving The Literacy of Adults? A Cross-National Cohort Analysis," World Development, Elsevier, vol. 87(C), pages 242-257.

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    Keywords

    globalization; economic development; education; endogeneity; inequality; poverty; non-linearities; trade;

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