Papers Using the KOF Index of GlobalizationIf you know of any other papers using the KOF Index of Globalization please write to Axel Dreher.
Gassebner, Martin, Lamla, Michael and James R. Vreeland, 2013, Extreme Bounds of Democracy, Journal of Conflict Resolution, forthcoming.
Conclusion: Globalization does not robustly affect democracy.
There are many stories of democracy. Efforts to test the empirical implications of various theories have produced a long list of variables that purportedly explain democracy. There is, however, little consensus over which variables robustly determine democracy. We address this issue by applying Sala-i-Martin’s (1997) Extreme Bounds Analysis (EBA) to test the robustness of more than 55 various proposed factors. We assess both the factors leading to the emergence of democracy as well as the factors explaining the persistence of democracy. To be clear from the outset, our approach is extreme. We evaluate over 1.7 million regressions of the emergence of democracy, and over 1.4 million regressions for the survival of democracy.
Ivanov, Stanislav and Craig Webster, 2013, Tourism’s Impact on Growth: The Role of Globalization, Annals of Tourism Research, forthcoming.
Conclusion: There is no correlation between globalization and the average per capita economic growth contribution on tourism between the years 2000 and 2010.
Globalisation is a political, economic, and social phenomenon and there are many who are in favor of it and many opposed to it. In this piece, the authors analyze the relationship between tourism and globalisation. The authors analyze 167 countries and territories for the years 2000-2010 to determine if globalisation has been linked with increases in per capita tourism’s contribution to economic growth. The analysis illustrates that there is no correlation between globalisation and the average per capita economic growth contribution of tourism for the years 2000-2010.
Potrafke, Niklas, 2013, Globalization and Labor Market Institutions: International Empirical Evidence, Journal of Comparative Economics, forthcoming.
Conclusion: The results in this article do not confirm that there would be any reasons to worry about globalization inducing labor market deregulation. On the contrary, it addresses the fact that in the globalization context, labor markets tend to be more regulated.
A widespread concern is that labor market institutions erode in the course of globalization, which, in turn, decreases employment and wages. By using panel data and cross-sectional data, I investigate the influence of globalization on labor market regulation. I use the indicators of labor market institutions by Gwartney et al. (2012) and the KOF indices of globalization. To deal with potential reverse causality, I employ a system GMM panel estimator and use a constructed trade share as proposed by Frankel and Romer (1999) as an instrumental variable for globalization in cross-sectional models. The results do not show that globalization induced labor market deregulation.
Tripathi, Sabyasachi and Nuno Carlos Leitao, 2013, India’s Trade and Gravity Model: A Static and Dynamic Panel Data, MPRA Working Paper 45502.
Conclusion: Three estimation methods are used: Tobit, random effects and GMM system. The conclusion of the paper is that India's bilateral trade is positively influenced by its own and the trade partner's GDP. According to the prefered model, different variables become significant: the geographical and cultural proximity and political globalization.
This paper examines the India’s trade flows using a gravity model for the period 1998-2012. We selected the following major trade partners: China PRP, United Arab Emirates, United States, Saudi Arab, Switzerland, Singapore, Germany, Hong Kong, Indonesia, Iraq, Japan, Belgium, Kuwait, Korea RP, Nigeria, Australia, United Kingdom, Iran, South Africa, and Qatar. In this research we apply a static and dynamic panel. We find evidence that political globalization and cultural proximity have a positive influence in bilateral trade. We also introduce economic size and common border these proxies confirming a positive impact of bilateral trade. These results show that the gravity model can explain the pattern of bloc’s trade.
Buehn, Andreas and Mohammad Reza Farzanegan, 2012, Smuggling around the World: Evidence from a Structural Equation Model, Applied Economics 44, 23: 3047-3064.
Conclusion: Trade restrictions and tariff burdens also contribute significantly to the size of smuggling.
This paper presents estimates from a Multiple Indicators Multiple Causes model in order to show, for the first time, the extent of smuggling for 55 countries around the world during the 1990s. Treating smuggling as a latent variable which is directly related to its underlying causes and indicators, an ordinal index of smuggling is derived. Additionally, a ranking of countries is provided.
Cho, Seo-Young, 2012, Integrating Equality - Globalization, Women’s Rights and Human Trafficking, Economics of Security Working Paper 69.
Conclusion: The article confirms what the theory states: globalization, and mainly its social component, empowers women and increases their rights. Still the impact of globalization on women’s rights is limited.
This paper empirically investigates whether globalization can improve women’s rights. Using panel data from 150 countries over the 1981-2008 period, I find that social globalization positively affects women’s economic and social rights. When controlling for social globalization however, economic globalization does not have any effect on women’s rights. Despite the positive effect of (social) globalization on women’s standing in a country, (marginalized) foreign women, proxied with inflows of human trafficking, are not beneficiaries of such ‘female-friendly’ globalization effects.
Flaten, Ranveig Drolsum and Indra de Soysa, 2012, Globalization and Political Violence 1970- 2008, International Interactions: Empirical and Theoretical Research in International Relations 38, 5:622-646.
Conclusion: The article’s results support the liberal view and casts doubt on the skeptics’ theory, empirically proving that globalization reduces the risk of civil war onset as well as the violations of human rights. Moreover, it brings its contribution in the field by emphasizing that when predicting, the peace globalization is a more robust predictor than, the commonly used conflict onset predictor, per capita income. The political globalization component seems to be less influential when predicting both dependent variables: onset of civil war and respect for human rights.
The question of globalization's effect on social harmony continues to be fiercely debated. We use a comprehensive measure of globalization (the KOF index) designed to capture the intensity of connectivity among countries along economic, social, and political dimensions. Our results suggest that globalization, particularly economic and social globalization, predicts a lower risk of civil war and political repression, but economic globalization predicts lower repression even after unit heterogeneity is accounted. When country fixed effects are accounted, political globalization's effect is problematic for human rights, suggesting that politically influential states escape the constraining effects of globalization on political repression. Indeed, globalization generally shows up as more important than per capita income, a variable often found to be one of the most robust determinants of political violence. The results taken together support those who argue that increased globalization may enhance prospects for social progress, not social resistance and political violence as skeptics claim.
Potrafke, Niklas, 2012, Political Cycles and Economic Performance in OECD countries: Empirical Evidence from 1951-2006, Public Choice 105, 1-2:155-179 .
Conclusion: My findings imply that we need more elaborate theories of how government ideology and electoral motives influence short-term economic performance.
This paper examines whether electoral motives and government ideology influence short-term economic performance. I employ data on annual GDP growth in 21 OECD countries over the 1951-2006 period and provide a battery of empirical tests. In countries with two-party systems GDP growth is boosted before elections and, under leftwing governments, in the first two years of a legislative period. These findings indicate that political cycles are more prevalent in two-party systems because voters can clearly punish or reward political parties for governmental performance.
Bjornskov, Christian and Niklas Potrafke, 2011, Politics and Privatization in Central and Eastern Europe: A Panel Data Analysis, Economics of Transition, 19, 2: 201-230.
Conclusion: The results suggest that market-oriented governments promoted the privatization of small-scale industries more than that of large-scale ones. In the rapid transition process in the early 1990s, leftist governments stuck to public ownership more strongly than in the following period from the mid-1990s to 2007. The remarkable differences between leftist and right-wing governments concerning both the role of government in the economy and the basic elements of political order are in line with developments in OECD countries, and may also hold further implications for transition and democratizing countries outside Central and Eastern Europe.
This article examines how government ideology influenced privatization efforts in Central and Eastern Europe after the transition from socialism. We analyse a dataset of privatization indicators covering small- and large-scale industries in 19 transition countries over the period 1990-2007 and introduce a government ideology index.
Cho, Seo-Young, 2011, Integrating Equality - Globalization, Women’s Rights, Son Preference and Human Trafficking, Courant Research Centre: Poverty, Equity and Growth Discussion Paper 73.
Conclusion: We find that social globalization positively affects both women’s economic and social rights, while the impact of economic globalization disappears when controlling for social globalization. Furthermore, we find that social globalization also reduces ‘son preference’ problems, prevailing in developing countries. However, (marginalized) foreign women, proxied with inflows of human trafficking, are not beneficiaries of such ‘female-friendly’ globalization effects.
Employing economic and social globalization indicators, we empirically analyze whether globalization affects women’s rights in the economic and social dimensions. Therefore panel data from 150 countries over the 1981-2008 period is used.
Chang, Chun-Ping, 2011, The Political Economy of Energy Regulation in OECD Countries, Energy Economics, 33, 5: 816-825.
Conclusion: We emphasize that political economy factors are important determinants of energy regulation.
This paper examines the effect of government ideology, political factors and globalization on energy regulation in electricity and gas industries using the bias-corrected least square dummy variable model in a panel of 23 OECD countries over the period of 1975-2007. We find that left-wing governments promote regulation in gas and electricity sectors. Also, less politically fragmented institutions contribute to deregulation of gas and electricity industries. Long tenures of incumbent government have limited impact on regulation in electricity sector, while it is associated with an increase in regulation of gas sector. Further, we find that higher political constraints and more globalized countries lead to deregulation in electricity and gas sectors. We discover that economic and social integration are the forces that promote deregulation in the gas industry, whereas political integration advance deregulation in the electricity industry.
Chang, Chun-Ping and Chien-Chiang Lee, 2011, The Effect of Globalization and Political Party on Economic Growth, Eastern European Economics 49,6:5-26.
The aim of this paper is to explore the role of globalization (the overall level as well as its three dimensions of economic, social, and political integration) in promoting economic growth and examine if the incumbent political party influences the relation between the two variables. We attempt to investigate the evidence of long-run equilibrium in terms of the relationship between globalization and economic growth in the period 1990-2006 while also considering the influences of the incumbent political party. In this paper we thus divide Europe into two groups based on political regime characteristics, using ten former communist countries (FCCs) and eighteen Organization for Economic Cooperation and Development (OECD) members as the study samples. The results of our empirical test confirm our expectations that globalization contributes to economic growth, but it is also sensitive to specific institutional factors, like an incumbent political party. Globalization has a larger impact on real gross domestic product per capita in FCCs than in OECD countries. Although the FCCs and OECD countries are in geographic proximity, the difference in their level of economic development is very large.
Dreher, A., Gassebner, M. Siemers, L., 2011, Globalization, Economic Freedom and Human Rights, Journal of Conflict Resolution 56, 3:516-546.
Conclusion: According to our results, physical integrity rights significantly and robustly increase with globalization and economic freedom, while empowerment rights are not robustly affected. Due to the lack of consensus about the appropriate level of empowerment rights as compared to the outright rejection of any violation of physical integrity rights, the global community is presumably less effective in promoting empowerment rights.
According to our results, physical integrity rights significantly and robustly increase with globalization and economic freedom, while empowerment rights are not robustly affected. Due to the lack of consensus about the appropriate level of empowerment rights as compared to the outright rejection of any violation of physical integrity rights, the global community is presumably less effective in promoting empowerment rights.
Gassebner, Martin, Noel Gaston and Michael Lamla, 2011, The Inverse Domino Effect: Are Economic Reforms Contagious?, International Economic Review 52, 1: 183-200.
Conclusion: Social globalization fosters economic reforms.
This paper examines whether a country's economic reforms are affected by reforms adopted by other countries. A simple model of economic reforms is developed to motivate the econometric work. Unsurprisingly, the model predicts that reforms are more likely when factors of production are internationally mobile and reforms are pursued in other economies. More interesting is the finding that reforms are not driven by greater trade openness. Using changes in the index of economic freedom as the measure of market-liberalising reforms, we examine two issues. First, we examine whether economic reforms are 'habit-forming', and secondly, we identify the most important channels through which reforms are transmitted from country to country. For a panel of 144 countries and the years 1995-2006, we find little evidence that reforms are habit-forming, if anything there is a status quo bias. However, we do find evidence of the importance of reforms in other countries. Consistent with our model, international trade is not a vehicle for the diffusion of economic reforms, rather the most important factor is geographical or cultural proximity.
Hessami, Zohal, 2011, Globalization’s Winners and Losers — Evidence from Life Satisfaction Data, 1975 – 2001, Economics Letters, 112, 3: 250-253.
Conclusion: We find that globalization has especially increased the subjective well-being of high-skilled workers, right-wing voters, high-income earners, and of respondents that trust the WTO, the World Bank, and the IMF.
Subjective well-being is not internationally comparable. This paper analyzes the effect of globalization on people’s life satisfaction drawing on a rich micro-dataset for the EU-15 countries from 1975 to 2001.
Kuhn, Theresa, 2011, Individual Transnationalism, Globalisation and Euroscepticism: An Empirical Test of Deutsch's Transactionalist Theory, European Journal of Political Research 50, 6: 811-837.
Conclusion: A multilevel ordinal logit analysis of survey data from the 2006 Eurobarometer wave 65.1 confirms that, first, the more transnational an individual, the less she or he is prone to be eurosceptical; and second, that this effect is more pronounced in countries that are more globalised.
Recent trends of mass-level euroscepticism seriously challenge Deutsch’s transactionalist theory that increased transnational interactions trigger support for further political integration. While transnational interactions have indeed proliferated, public support for European integration has diminished. This article aims to solve this puzzle by arguing that transnational interaction is highly stratified across society. Its impact on EU support therefore only applies to a small portion of the public. The rest of the population not only fails to be prompted to support the integration process, but may see it as a threat to their realm. This is even more the case as, parallel to European integration, global trends of integration create tensions in national societies. The following hypotheses are proposed: first, the more transnational an individual, the less she or he is prone to be eurosceptical; and second, this effect is more pronounced in countries that are more globalised.
Kitunzi, Mutunzi Ahmed, 2011, Globalization Threats to and Opportunities for Foreign Direct Investment Lessons for Uganda and Other Low Income Countries, ICBE-RF Research Report 13.
Conclusion: Results from the descriptive statistics, Pearson Product-Moment correlations and regression analyses carried out indicated that generally there is a statistically significant positive relationship between inbound FDI and the levels/indices of a country’s economic globalization, Actual economic flows, economic restrictions, social globalization, personal contacts, information flow, cultural integration, and political globalization.
The study was designed as a cross-sectional, desk-top research that applied a triangulation of descriptive and inferential statistics to analyze the correlation between FDI inflows and the levels/indices of economic, social and political globalization for 125 countries. Data for the indices of economic, social and political globalization was obtained from the KOF Globalization Index (2011) while data on FDI was from UNCTAD/World Investment reports. Units of analysis were countries and economic/GNI per capita groupings of countries.
Leibrecht, Markus, Michael Klien and Özlem Onaran, 2011, Globalization, Welfare Regimes and Social Protection Expenditures in Western and Eastern European countries, Public Choice 148: 569-594.
Conclusion: No globalization effect is found for the liberal and the southern welfare regimes.
This paper analyzes the effects of globalization on social protection expenditures in European countries. The particular focus is on (a) the Eastern European countries and (b) on differences in globalization effects between welfare regimes.We find evidence in favor of the compensation hypothesis inWestern Europe which is driven by the conservative welfare regime, outweighing the efficiency effect of globalization in the social-democratic welfare regime. In Eastern European countries the efficiency effect is predominant.
Leitão, N. C., 2011, Foreign Direct Investment: Localization and Institutional Determinants, Management Research and Practice 3, 2: 1-6.
Conclusion: There is evidence that foreign investors choose Portugal because this country provides cheaper labour costs. Moreover, there appears to be macroeconomic stability in the period under review. Regarding corruption, the results show there is a negative correlation between corruption and FDI. However, the index of globalization promotes the attraction of FDI, which explains the mobility of production factors and the interdependence between markets.
In this article, we analyze the determinants of FDI. To understand this, we introduced the classic localization explanatory variables and the institutional variables as in globalization and corruption. We applied a static panel data (Fixed effects) and the GMM-System approach with orthogonal transformation of data.
Lalountas, Dionisios A., George A. Manolas and Ioannis S. Vavouras, 2011, Corruption, globalization and development: How are these three phenomena related?, Journal of Policy Modeling 33, 4:636–648.
Conclusion: There exists a positive relationship between the corruption level and the globalization, under the assumptions of a linear model. The conclusion drawn when looking at the middle and high income countries is that globalization is a powerful tool for fighting corruption. For low income countries, globalization has no significant impact on corruption.
This paper examines the existence of any relations between globalization and corruption using cross-section data for 127 countries. The estimation results indicate that, under the assumption of a linear model, a positive correlation between corruption and globalization exists, while when linearity is dropped there seems to be no significant effect of globalization on corruption. According to our analysis, linearity is a good approximation only for middle and high income countries. Hence, our main conclusion is that globalization is a powerful weapon against corruption only for middle and high income countries, while for low income countries globalization has no significant impact on corruption. For such countries fighting corruption requires additional global action aiming at the reduction of poverty.
Meinhard, Stephanie and Niklas Potrafke, 2011, The Globalization-welfare State Nexus Reconsidered. Review of International Economics 20, 2:271-285.
Conclusion: Globalization increased government sectors around the world. Social globalization especially had a positive influence. Globalization-induced effects were stronger in OECD countries. Overall globalization and economic globalization reduced the relative price of government expenditures. These findings suggest that globalization does not jeopardize the welfare state at all.
Two hypotheses relate to the globalization-welfare state nexus: the efficiency hypothesis predicts that globalization reduces government sector size and governments’ capacity to finance the welfare state. The compensation hypothesis, in contrast, predicts that globalization induces a higher demand for social insurance which results in an extended welfare state. Empirical evidence on the globalization-welfare state nexus is mixed. The evidence is re-examined by investigating a yearly panel dataset of 186 countries for the 1970-2004 period. Dta compiled by the Penn World Tables on government sector size is used and the KOF index of globalization is employed.
Mutascu, Mihai and Anne-Marie Fleischer, 2011, Economic Growth and Globalization in Romania, World Applied Sciences Journal 12, 10: 1691-1697.
Conclusion: The results show that if countries tend to maximize the economic growth, they must globalize more. This connection is functional only on medium and long term, but with a flat intensity. Unfortunately, this process cannot be absolutized.
The existence and the direction of the relationship between economic growth and globalization are very debatable. In this context, the paper analyses the “behaviour” of the relationship between economic growth and globalization, in Romania, using an unrestricted vector autoregressive model (Unrestricted VAR), for 1972-2006 period.
Peeters, Marga, 2011, The Changing Pattern in International Trade and Capital Flows of the Gulf Cooperation Council Countries in Comparison with other Oil-exporting Countries, Journal of Knowledge Management, Economics and Information Technology 1, 7:356-384.
Conclusion: The impact of the crisis is found to have reverted international capital flows of the GCC, in particular cross-border bank loans and deposits.
During the past decade the GCC countries have achieved a remarkably high degree of trade and financial integration in the world economy. Before the global crisis began, they invested their abundant oil income which resulted from high energy prices and high world demand, in return abundantly abroad. Thanks to policies that are geared towards opening up borders, the GCC countries have imparted a significant stimulus to the world economy, to a much greater extent than other oil exporting countries in similar conditions. The development of the gross capital flows in view of the recent global crisis and their composition are the main focus of this study. It aims at providing a comprehensive overview of the pattern of the current and capital account of the balance of payments of the group of six GCC countries, and benchmarks this group with the other OPEC countries that have a comparable size of natural resources. Aspects of globalization, trade and financial integration, such as the dependence on oil, “Dutch disease”, regional integration, foreign direct investment and cross-border assets and loans are addressed.
Potrafke, Niklas, 2011, Intelligence and Corruption, Economics Letters 114, 1:109-112.
Conclusion: This study finds that countries with high-IQ populations enjoy less corruption.
Corruption of the especially inefficient roving-bandit type results under a short time-horizon. People with longer time horizons internalize the deleterious future effects of contemporary corruption. I propose that there is less corruption in societies with high-IQ populations because more intelligent people have longer time horizons, a common finding in psychology and economics.
Potrafke, Niklas, 2011, Does Government Ideology Influence Budget Composition? Empirical Evidence from OECD Countries, Economics of Governance, 12, 2: 101-134.
Conclusion: The results suggest that government ideology has had a rather weak influence on the composition of governments’ budgets. Leftist governments, however, increased spending on “Public Services” in the period 1970-1997 and on “Education” in the period 1990-2006. These findings imply, first, that government ideology hardly influenced budgetary affairs in the last decades, and thus, if ideology plays a role at all, it influences non-budgetary affairs. Second, education has become an important expenditure category for leftist parties to signal their political visions to voters belonging to all societal groups.
This paper examines whether government ideology has influenced the allocation of public expenditures in OECD countries. I analyze two datasets that report different expenditure categories and cover the time periods 1970-1997 and 1990-2006, respectively.
Rao, B. Bhaskara, Artur Tamazian and Krishna Chaitanya Vadlamannati, 2011, Growth Effects of a Comprehensive Measure of Globalization with Country Specific Time Series Data, Applied Economics 43, 5: 551-568.
Conclusion: Countries with higher levels of globalization have higher steady state growth rates (SSGR) but the growth effects on SSGRs are smaller than in many studies.
Many studies have estimated the growth effects of globalization where globalization was measured with a few economic variables, ignoring its social and political dimensions. Recently, Dreher has developed a comprehensive measure of globalization with several variables from the economic, political and social sectors. He showed, with the panel data methods, that globalization has positive growth effect implying that countries with higher globalization grow faster. We argue that 5-year average growth rates, used in many panel data studies, are inadequate proxies for the unobservable Steady State Growth Rate (SSGR). Using the Dreher indices, we extend the Solow model to derive country-specific estimates of SSGRs for Singapore, Malaysia, Thailand, India and the Philippines.
Rao, B. Bhaskara, Artur Tamazian and Krishna Chaitanya Vadlamannati, 2011, Globalization and growth in the low income African countries with the extreme bounds analysis, Economic Modelling 28, 3: 795-805.
Conclusion: Contrary to the findings by Levine and Renelt (1992) that cross-country growth relationships are fragile, the effects of globalization and some other determinants of the long run growth rate are found to be robust by EBA.
The relationship between globalization and economic growth, especially in the poorer developing countries, is controversial. Previous studies have used single globalization indicators such as the ratio of exports plus imports to GDP. This paper uses a comprehensive measure of a globalization of Dreher (2006), which is based on measures of globalization of the economic, social and political sectors. Panel data estimates with data of 21 low income African countries show a small but significant positive permanent growth effects. The sensitivity of this growth effect is examined with the extreme bounds analysis (EBA).
Voeten, Erik and Michael L. Ross, 2011, Unbalanced Globalization in the Oil- Exporting States, APSA Annual Meeting Paper
Conclusion: Oil-exporting countries are not politically globalized even if economically they are highly influential. This restricts the general statement that economic and political globalization are evolving together only to the oil-importing countries, proving that when all coutries are considered the above statement does not hold anymore.
Oil-exporting states occupy a paradoxical position in the international system. Economically, they tend to be highly globalized, meaning dependent on international trade, finance, and labor. They are also the source of the world’s single most valuable commodity, and hence highly influential. Yet politically, they are strikingly un-globalized: they are less likely than other states to sign major treaties or join intergovernmental organizations; and they often defy global norms – on human rights, the expropriation of foreign companies, and the financing of foreign terrorism or rebellions. We refer to this combination of features as “unbalanced globalization,” and contrast it with the more balanced globalization of other countries. We also develop an explanation for it, based on the asymmetric interdependence created by oil wealth. We demonstrate empirically that oil wealth is associated with both high levels of economic and social integration and low levels of political integration; and that oil-rich countries shun precisely those international institutions that have a political character and that require legally binding commitments. While we confirm the conventional view that interdependence fosters political integration, we show that petroleum exports have the reverse effect.
Younas, Javed and Debasish Chakraborty, 2011, Globalization and the Feldstein–Horioka puzzle, Applied Economics 43, 16:2089-2096.
Conclusion: Economic globalization had as a consequence, in both developed and developing countries, the increase in capital mobility. The results of the study show that financially open economies can manage higher current account deficits. This is a consequence of a better access to external capital markets of open economies.
Capital account liberalization and the integration of world financial markets should increase capital mobility across countries. This article uses the Feldstein–Horioka savings–investment methodology to examine the impact of economic globalization on the degree of capital mobility in 99 countries over the period 1970 to 2005. Our findings suggest that economic openness and financial market integration have led to increased capital mobility in developed as well as developing countries. However, their effect appears to be larger for the latter. This also implies that countries with more financial openness can run higher current account deficits due to better access to external capital markets. Our results also support the previous findings that foreign aid supplements domestic savings for investment in developing countries.
Aidt, Toke and Martin Gassebner, 2010, Do Autocratic States Trade Less?, World Bank Economic Review 24, 1: 38-76.
Conclusion: Economic restrictions hamper imports and, to a lesser extent, exports.
The paper analyzes whether the political regime of a country influences its involvement in international trade. Firstly, we develop a theoretical model that predicts that autocracies trade less than democracies. Secondly, we test the predictions of the model empirically using a panel of more than 130 countries for the years 1962 to 2000. In contrast to the existing literature, we use data on individual importing and exporting countries, rather than a dyadic set-up. In line with the model, we find that autocracies import substantially less than democracies, even after controlling for official trade policies. This finding is very stable and does not depend on a particular set-up or estimation technique.
Bergh, Andreas and Martin Karlsson, 2010, Government Size and Growth: Accounting for Economic Freedom and Globalization, Public Choice 142, 1-2:195-213.
Bergh, Andreas and Therese Nilsson, 2010, Do Economic Liberalization and Globalization Increase Income Inequality?, European Journal of Political Economy 26, 4: 488-505.
Conclusion: Freedom to trade internationally is robustly related to inequality, also when adding several control variables and controlling for potential endogeneity using GMM. Social globalization and deregulation is also linked to inequality. Reforms towards economic freedom seem to increase inequality mainly in rich countries, and social globalization is more important in less developed countries. Monetary reforms, legal reforms and political globalization do not increase inequality.
Using the Standardized World Income Inequality Database, we examine if the KOF Index of Globalization and the Economic Freedom Index of the Fraser institute are related to within-country income inequality using panel data covering around 80 countries 1970-2005.
Bergh, Andreas and Therese Nilsson, 2010, Good for Living? On the Relation between Globalization and Life Expectancy, World Development 38, 9: 1191-1203.
Conclusion: There is a positive relation between economic globalization and life expectancy.
This paper analyzes the relation between three dimensions of globalization (economic, social and political) and life expectancy using a panel of 92 countries over the period 1970-2005. Using different estimation techniques and sample groupings we find a very robust positive effect from economic globalization on life expectancy, even when controlling for income, nutritional intake, literacy, number of physicians and several other factors. The result also holds when the sample is restricted to low income countries only. For political and social globalization we find no robust effects.
Chang, Chun-Ping and Chien-Chiang Lee, 2010, The Partisan Comparisons for Global Effect on Economic Growth: Panel Data Analysis of Former Communist States and European OECD Members, Eastern European Economics, forthcoming.
Conclusion: The results of our empirical test confirm our expectations that globalization contributes to economic growth, but it is also sensitive to specific institutional factors like an incumbent party. Globalization has a larger impact on real GDP per capita in FCC countries than in their OECD countries. While the geography position is quite close, the margin of their development is very large for these two groups of countries.
The aim of this paper is to compare the role of globalization (overall and its three dimensions of economic, social, as well as political integrations) in order to promote economic growth when the role of a political party is taken into account in 10 former communist countries (FCC) and 18 OECD democracies in Central-Western Europe. Employing the panel cointegration tests, as a first step we proceed to an analytical framework to investigate the long-run relationships among globalization, political party, and real GDP per capita. For a second step we estimate the long-run effect of globalization on economic growth done country-by-country and group-based via the panel dynamic ordinary least squares and fully modified ordinary least square.
Chang, Chun-Ping and Chien-Chiang Lee, 2010, Globalization and Economic Growth: A Political Economy Analysis for OECD Countries, Global Economic Review 39, 2: 151-173.
Globalization is commonly defined as a strict economic path by most previous works, but it is really a fuzzy concept with unrestrained dimensions. While the ideological location of an incumbent political party is a powerful predictor of its policy position, the role of a political party in the globalization-growth nexus has never been fully empirically investigated. By applying Pedroni's panel cointegration technique instead of a time-series or traditional panel data approach, this paper aims to empirically re-examine the co-movement and the causal relationship among economic growth, the overall globalization index, and its three main dimensions* economic, social, as well as political integrations by using panel data for 23 Organization for Economic Cooperation and Development (OECD) countries for 1970 to 2006. Certainly, the political party variable is taken into account as the advanced test is promoted, and we finally discover that all variables move together in the long run. Based on the results of the panel causality test, though the evidence of short-run causality is very weak, it does show long-run unidirectional causality running from the overall index of globalization, economic globalization, and social globalization to growth. Finally, the critical role of the political party is deeply discussed in relation with our results.
Choi, Seung-Whan, 2010, Beyond Kantian Liberalism: Peace through Globalization, Conflict Management and Peace Science 27, 3: 272-295.
Conclusion: Globalization reduces the number of military interstate disputes.
Although globalization has become one of the most salient issues in the study of international relations during the past few decades, its net effect on international confict remains unexplored. I argue that although the manifold phenomena of globalization may confict (i.e. produce both positive and negative infuences), its overall consequences help foster a common peaceful disposition among national leaders who are then less likely to resort to arms in times of crisis. Based on a cross-sectional, time-series dyadic data analysis for 114 countries during the period from 1970 to 2001, this study reports that socio-economic and political globalization in its entirety generates a dampening effect on militarized interstate disputes. Even when common confict-related control variables such as democracy, economic interdependence, joint membership in international organizations, and others are incorporated into the analysis, globalization emerges as the most powerful explanatory variable. Consequently, globalization when taken in its entirety represents an unambiguous force for interstate peace.
Dreher, Axel, Noel Gaston and Pim Martens, 2010, Globalisation, the Global Village and the Civil Society, Futures 42, 6: 574-582.
Conclusion: The institutions of global civil society place limits upon the government and function as a sort of check on various forms of government, especially the authoritarian and absolutist varieties.
This paper analyzes the effects of globalization on implicit tax rates (ITRs) on labour income, capital income, and consumption in the EU15 and Central and Eastern European New Member States (CEE NMS).
Human dynamics, institutional change, political relations and the global environment have become increasingly intertwined. The development of multicultural societies has certainly not been without its problems. The re-emergence of extremist political parties, the segregation of cultures and ethnic conflict, illustrate the problematic side of socio-cultural integration at the local level. We argue that socio-cultural factors not only change as a result of globalisation, but also can be causes, as well as challenges to the process of globalisation itself. We describe how the recent introduction of the MGI and KOF globalisation indices can be used to empirically address to what extent globalisation affects social phenomena. Overall, while the rigidity of national boarders slackens, to speak about a global community is misleading. National borders still exist and the nation-state still matters. The fact is that they have to co-exist with civil society. The institutions of global civil society place limits upon the government and function as a sort of check on various forms of government, especially the authoritarian and absolutist varieties.
Dreher, Axel, Noel Gaston, Pim Martens and Lotte Van Boxem, 2010, Measuring Globalization: Opening the Black Box. A Critical Analysis of Globalization Indices, Journal of Globalization Studies 1, 1:166-185.
Conclusion: The article describes two indices used for measuring globalization: MGI and KOF (2002) globalization index, explaining their content and way of computation. The improvements of the KOF globalization index (2009) are also presented. Based on the updates, the differences in globalization are explained by OECD membership, industrialization level or welth of the coutries.
Indices of globalization are employed in various ways. This paper discusses the measurement of globalization with a view to advancing the understanding of globalization indices. Our assessment is that a true understanding of globalization must be an interdisciplinary enterprise. Moreover, it would be fruitful if academics, both quantitative experts and theoreticians, can work together on this challenge. Despite the different methodologies, choice of variables and weights, in order to study and measure globalization meaningfully, new cooperative frameworks are needed.
Henry, Clement M. and Robert Springborg, 2010, Globalization and the Politics of Development in the Middle East, Cambridge University Press.
Jacoby, Wade, 2010, Managing Globalization by Managing Central and Eastern Europe: the EU’s Backyard as Threat and Opportunity, Journal of European Policy 17, 3:416- 432.
Globalization has been the source of many worries in Europe. Over the past decade, European voters and politicians have increasingly demanded that the EU “manage” globalization instead of just passively receiving it. But managing the new member states of Central and Eastern Europe (CEE) emerged as an important precursor for managing globalization more broadly. Poor areas next door often appear as both threat and opportunity to richer areas like the old EU-15. Some EU-15 actors – mostly corporations, but also many European liberals – saw in the CEE region a chance for new markets, new workers, and new investment opportunities for the core EU-15 economies. They tried to codify new conditions of production and sale that they thought beneficial. But other EU-15 actors worried openly about competition from CEE on capital, labor, and product markets or about the cost of fiscal transfers to the much poor peoples of CEE. The fearful – mostly EU-15 states and the EU itself but sometimes firms headquartered in the EU-15 – acted to try to minimize these potential threats. I show that, as a broad proposition, actors motivated by the threats seem to have shaped conditions more than those motivated by opportunity. I present data from financial flows, trade in goods and services, and labor migration to make this central point. I conclude with four paradoxes and some speculations on how this pattern may change with the financial crisis of 2008-09.
Lee, Sook Jong and Kevin Hewison, 2010, Introduction: South Korea and the Antinomies of Neo- Liberal Globalization, Journal of Contemporary Asia 40, 2: 181- 187.
Conclusion: This paper introduces the special issue that addresses the challenges of globalization that face contemporary South Korea. Before briefly introducing each of the articles that comprise the special issue, this paper provides some basic contextualization, suggesting that Korea is a useful case for understanding the pressures and resistances associated with neo-liberal globalization that define domestic responses to exhortations for internationalization made by both domestic and global actors.
Onaran, Özlem, Valerie Bösch and Markus Leibrecht, 2010, How Does Globalization Affect the Tax Burden on Labour Income, Capital Income and Consumption in Different Welfare Regimes. The Case of Western and Eastern EU Member States, Discussion Papers SFB International Tax Coordination, 35. SFB International Tax Coordination, WU Vienna University of Economics and Business, Vienna.
Conclusion: We find a positive effect of globalization on the ITR on labour income in the EU15, but no effect on the ITR on capital income, and a negative effect on ITR on consumption. There is a significant negative effect on the ITR on capital income in the social-democratic and southern welfare regimes, a marginally significant negative effect in the liberal regime; a negative effect on the ITR on consumption in the social-democratic, conservative, and liberal regimes; and a positive effect on the ITR on labour income in all welfare regimes. In the CEE NMS there is no effect of globalization on any ITRs.
This paper analyzes the effects of globalization on implicit tax rates (ITRs) on labour income, capital income, and consumption in the EU15 and Central and Eastern European New Member States (CEE NMS).
Potrafke, Niklas, 2010, Labor Market Deregulation and Globalization: Empirical Evidence from OECD Countries, Review of World Economics, 146, 3: 545-571.
Conclusion: The results suggest that globalization did neither influence the unemployment replacement rate, the unemployment benefit length, public expenditures on ALMP, the tax wedge, union density nor overall employment protection. In contrast, protection of regular employment contracts was diminished when globalization was proceeding rapidly. In fact, domestic aspects, such as unemployment and government ideology are more important determinants of labor market institutions and deregulation processes in OECD countries than globalization. For this reason, working conditions of unskilled workers are not likely to deteriorate and the jobs of unskilled workers are not likely to disappear in the course of globalization. All this is, of course, not to insinuate that globalization has any benign influence on labor market institutions.
This paper empirically investigates the influence of globalization on various aspects of labor market deregulation. I employ the data set by Bassanini and Duval (2006) on labor market institutions in OECD countries and the KOF index of globalization. The data set covers 20 OECD countries in the 1982-2003 period.
Potrafke, Niklas, 2010, Does Government Ideology Influence Deregulation of Product Markets? Empirical Evidence from OECD Countries, Public Choice 143, 2: 135-155.
Conclusion: The results suggest that government ideology has had a strong influence on the deregulation process: market-oriented governments promoted the deregulation of the energy, transport and communication industries.
This paper examines how government ideology has influenced deregulation of product markets in OECD countries. I analyze a dataset of non-manufacturing regulation indicators covering energy, transport and communication industries in 21 OECD countries over the 1980-2003 period and employ two different indices of government ideology. The results suggest that government ideology has had a strong influence on the deregulation process: market-oriented governments promoted the deregulation of the energy, transport and communication industries. This finding identifies remarkable differences between leftist and rightwing governments concerning the role of government in the economy and basic elements of political order.
Potrafke, Niklas, 2010, The Growth of Public Health Expenditures in OECD Countries: Do Government Ideology and Electoral Motives Matter?, Journal of Health Economics 29, 6: 797-810.
Conclusion: The results suggest that incumbents behaved opportunistically and increased the growth of public health expenditures in election years. Government ideology did not have an influence.
This paper empirically evaluates whether government ideology and electoral motives influenced the growth of public health expenditures in 18OECDcountries over the 1971-2004 period. The results suggest that incumbents behaved opportunistically and increased the growth of public health expenditures in election years. Government ideology did not have an influence. These findings indicate (1) the importance of public health in policy debates before elections and (2) the political pressure towards re-organizing public health policy platforms especially in times of demographic change.
Sapkota, Jeet B. 2010, Globalization and Human Aspect of Development in Developing Countries: Evidence from Panel Data, Journal of Globalization Studies 2, 1: 78-96.
Conclusion: Globalization, in terms of KOF Index and its components, significantly promotes human development by increasing UNDP's Human Development Index and Gender-related Development Index, and reducing Human Poverty Index.
This paper evaluates the effects of globalization on human development, gender development and human poverty in the developing countries and compares the effects across world regions as well as the income groups of countries. Using the panel data of 124 developing countries covering 9 years from 1997, the study shows that globalization, measured by the KOF Index of globalization, not only promotes human and gender development but also reduces human poverty significantly. Not surprisingly, all three aspects of globalization (economic, social and political) contribute to the overall effect of globalization. To complement these findings, the paper calls for a study of some country cases. The conclusion is made that such studies will facilitate the development of policy recommendations tailored towards countries in their cultural context, with a positive (or at least neutral) impact on the reduction of human development gaps within them.
Sapkota, Jeet B. 2010, Globalization's Convergence Effect on Human Quality of Life (QOL) in Asia: Evidence from the KOF Index of Globalization, Asian Regional Integration Review 2: 1-28.
Conclusion: Using panel data of selected countries from 1975 to 2005 over five-year intervals, and applying the dynamic panel data model, the study finds that human QOL, in terms of human development index, of most countries in the region is moving closer to that of Japan (the benchmark country in this study) and that globalization, measured by the KOF indexes, has significant impacts on this convergence.
The impact of globalization on human quality of life (QOL) is an issue highly debated by academics, policy makers, the private sector, social organizations, and even by the general public in Asia and elsewhere in the world. There is no doubt that globalization has had a significant impact on the lives of millions of Asian people; however, it is unclear that globalization has reduced or increased the gap in human QOL among the rich and poor countries. This paper examines whether human QOL in the Asian countries is converging (or diverging), and assesses the impact of globalization on QOL trends in the region.
Šliburytė, Laimona and Ruta Masteikienė, 2010, Impacts of globalization on Lithuanian economic growth, Economics and management 15: 288-294.
Conclusion: Globalization in Lithuania was a beneficial process eliminating some barriers among trade partners and leading to the country’s economic growth.
This paper is an analysis of globalization process and its impacts on economic growth and development in Lithuania. The article opens with the introduction where the problem of the research, the object of the research, the purpose of the research and the research methods are described. The authors of this article analyses different aspects of globalization affecting Lithuanian economy, discuss the pros and cons of Lithuania’s involvement in the process of globalization, analyze Lithuania’s position in the main indexes of globalization (economic, social, political) and 2010 index of economic freedom, outline impacts of globalization process on the countries (Lithuania) economic growth. Conducting analysis of globalization process and its impacts on economic growth and development in Lithuania the method of comparative integrated analysis of statistical data and critical analysis and systematization of scientific literature were employed.
Steiner, Nils D., 2010, Economic Globalization and Voter Turnout in Established Democracies, Electoral Studies 29, 3: 444-459.
Conclusion: Under conditions of high economic integration there is a lower inclination to vote.
This paper asks whether international economic integration negatively affects electoral turnout. The theoretical model builds on the premise that economic integration constrains the ability of national governments to shape outcomes. Citizens are conscious of such constraints and take them into account when considering the costs and benefits of casting a vote in national elections. The result is a lower inclination to vote under conditions of high economic integration. Consequently, aggregate turnout is lower the more internationally integrated a national economy is. Analysis of aggregate data for parliamentary elections in 23 OECD democracies over the period 1965-2006 robustly supports this hypothesis. The empirical estimates suggest economic globalization as a central cause of the general decline in turnout within established democracies.
Temkin, Benjamin and Jorge Veizaga, 2010, The Impact of Economic Globalization on Labor Informality, New Global Studies 4, 1.
Conclusion: The empirical exploration developed in this paper shows that the impact of globalization on the level of informal employment depends essentially on the level of economic development of each country. There is a differential impact. For developing countries, the higher the level of economic globalization, the higher labor informality will be. Developed countries show the opposite trend.
This paper explores, empirically and at the global level, the relation between economic globalization and informal employment. Based on data over a long period of time on labor informality, economic globalization, level of development and institutional freedom in various countries, three linear models are advanced. One is a static model which suggests that a greater level of globalization reduces the level of informality. In contrast, two alternative dynamic models show that, taking into consideration the historic development of each country, a differential impact of globalization on employment informality becomes evident. In developing countries, higher globalization levels will result in higher levels of labor informality, while in developed countries the effects of globalization will be the opposite and produce lower levels of informality. An additional finding is that an institutional context of economic liberalization at the national level increases labor informalization.
Vandenbussche, Hylke and Maurizio Zanardi, 2010, The Chilling Effects of Antidumping Law Proliferation, European Economic Review 54, 6: 760-777.
Conclusion: Using a gravity model of annual observations (1980-2000) our estimates show that AD has trade chilling effects on aggregate import volumes but the impacts are heterogeneous across sectors.
Advocates of antidumping (AD) laws downplay their negative effects by arguing that the trade flows that are subject to AD are small and their distortions negligible. But while the adverse effect of AD on product-level trade has long been established, the question remains whether there are trade effects at the aggregate level. The recent proliferation wave of AD laws and their use provides us with a unique policy change to estimate the true trade effects of adopting and enforcing AD laws. For this purpose, we estimate the effect of AD on bilateral trade flows between the "new adopters" of AD laws and their trade partners. Using a gravity model of annual observations (1980-2000) our estimates show that AD has trade chilling effects on aggregate import volumes but the impacts are heterogeneous across sectors. We find that new tough users experience a chilling of their aggregate imports of 14 billion US$ a year (or 5.9%) as a result of AD measures. For some countries like Mexico and India, the dampening effects of AD laws on trade flows are found to substantially offset the increase in trade volumes derived from trade liberalization.
Amavilah, Voxi Heinrich, 2009, National Identity, Globalization, and the Well-Being of Nations, MPRA Paper 14948.
Conclusion: Nations gain more from interactions with other nations than from national isolation.
Using a simple production function approach this paper shows that conventional factors and forces of production, national identity, and globalization are important to national well-being, but in varying ways. Whereas investment in capital and globalization, especially social globalization, affect national well-being strongly, national well-being is inelastic to all three measures of national identity.
Arribas, Iván, Francisco Pérez and Emili Tortosa- Ausina, 2009, Measuring Globalization of International Trade: Theory and Evidence, World Development 37, 1:127–145.
Conclusion: The correct estimation of the globalization degree for an economy is difficult because of all the aspects the “globalization” covers. Results show that trade integration is higher than what traditional openness indicators suggest. For the success of the globalization process the degree of openness should be also high, any other situation jeopardizing the process.
Measuring globalization requires a Standard of Perfect International Integration as a benchmark that a single world space would reach under conditions of geographic neutrality in international trade. We define this standard and present indicators for openness, connectedness and integration, for each specific economy, and for the world economy. We apply our indicators to data on trade flows for 59 countries for the 1967–2004 period. Results show that trade integration is higher than what traditional openness indicators suggest. Several economies find high levels of integration, but the low degree of openness in some large economies jeopardizes the progress of globalization.
Bergh, Andreas and Martin Karlsson, 2009, Government Size and Growth: Accounting for Economic Freedom and Globalization, Public Choice 142, 1-2: 195-213.
Conclusion: Government size robustly correlates negatively with growth. We also find some evidence that countries with big government can use economic openness and sound economic policies to mitigate negative effects of big government.
We examine the relationship between government size and economic growth, controlling for economic freedom and globalization, and using Bayesian Averaging over Classical Estimates in a panel of rich countries. Countries with big government have experienced above average increases in the KOF globalization index and in the Fraser institute’s Economic freedom index. To maintain comparability with earlier studies, we use two sample periods: 1970–1995 and 1970–2005.
Busemeyer, Marius R., 2009, From myth to reality: Globalization and public spending in OECD countries revisited, European Journal of Political Research 48, 4:455- 482.
Conclusion: By extending the time period compared to what was normally considered in literature until then, a strong, inverse association between economic openness and public spending, across a variety of spending types, was found. When looking at different time periods, even though in the 1980s there was a clear association between the openness of an economy and the public sector size, later on, in the 1990s, this association decayed. The article meets its purpose of showing that economic globalization is indeed a determinant in the politics of public spending.
The prevailing but not unchallenged ‘conventional wisdom’ in the literature dealing with the impact of globalization on public spending is that the effects of increased openness can be compensated through the welfare state. Repeatedly, studies have found little evidence for a ‘race to the bottom’ in taxation or spending. This research note shows that it is premature to conclude that globalization has no negative impact on public spending. By extending the period of observation into the 2000s, by looking at changes in openness and spending instead of their levels, and by disentangling the effects of openness in the cross-sectional and over-time dimensions of variation, this article shows that the association between increased openness and spending is clearly negative. Although the contribution of this research note is mainly empirical, some theoretical arguments are presented, emphasizing the long-term nature and complexity of policy making in the politics of globalization.
Creusen, Harold and Arjan Lejour, 2009, The Contribution of Trade Policy to the Openness of the Dutch Economy, CPB document 194.
Conclusion: Using a gravity approach this paper finds that the increase in trade is largely caused by income developments.
The last four decades, Dutch exports and imports grew annually about 7.5%, while re-exports rocketed in the last two decades. Using a gravity approach this paper finds that the increase in trade is largely caused by income developments. Trade policy, consisting of reductions in import tariffs and other trade barriers and the creation of the EU internal market, also has a significant impact on trade growth, although much smaller. Without any liberalisation of trade policy since 1970 the ratio of trade (excluding re-exports) to GDP would have been about 8%-points lower. By estimating the trade enhancing-effect of trade policy on GDP we conclude that trade policy has contributed 6% to 8% to the growth of national income in Netherlands since the 1970s. Foreign Direct Investments (FDI) experienced a massive but erratic growth, mostly in the last two decades. Income developments could explain half of that growth; deregulations of national capital markets explain only a small part of FDI growth.
Das, Jayoti and Cassandra DiRienzo, 2009, The Nonlinear Impact of Globalization on Corruption, The International Journal of Business and Finance Research 3, 2:33-46.
Conclusion: This article shows that there is a nonlinear relationship between the globalization and corruption level, an important factor being the level of globalization. The greatest corruption level was associated with countries transitioning towards the global community, such as China or Russia. The reasoning behind is that the desire to catch up globally may encourage illicit and illegal practices.
Some researchers have argued that globalization has increased the opportunity for corrupt practices, while others state that globalization has led to a decrease in corruption as countries wishing to join the global economy must comply with international anti-corruption rules and regulations. This study empirically explores this paradox using the Corruption Perceptions Index (CPI) and the Konjunkturforschungsstelle (KOF) globalization Index. The results suggest that a nonlinear relationship exists between globalization and corruption. Specifically, the results of this study suggest that the effect of globalization on corruption is dependent on the level of globalization with the highest corruption levels realized at moderate or transitioning levels of globalization.
De Beer, Paul and Ferry Koster, 2009, Sticking Together or Falling Apart. Individualization, Globalization, and Solidarity (Amsterdam: Amsterdam University Press).
Conclusion: Overall, solidarity is on the rise rather than declining, despite the ambiguous effects of both globalization and individualization.
This volume examines the impact of globalization and individualization on social solidarity, in both a theoretical and empirical context, focusing on types of informal solidarity, such as volunteering, charitable giving, and care, as well as more formal types, such as government benefits and developmental aid. The first thorough study of international comparative data on solidarity, Sticking Together or Falling Apart concludes that, overall, solidarity is on the rise rather than declining, despite the ambiguous effects of both globalization and individualization.
Dreher, Axel, Jan-Egbert Sturm and James R. Vreeland, 2009, Development Aid and International Politics: Does Membership on the UN Security Council Influence World Bank Decisions?, Journal of Development Economics 88, 1: 1-18.
Conclusion: Political globalization reduces the number of new World Bank projects.
We investigate whether elected members of the UN Security Council receive favorable treatment from the World Bank, using panel data for 157 countries over the period 1970-2004. Our results indicate a robust positive relationship between temporary UN Security Council membership and the number of World Bank projects a country receives, even after accounting for economic and political factors, as well as regional, country and year effects. The size of World Bank loans, however, is not affected by UN Security Council membership.
Fischer, Justina A.V. and Frank Somogyi, 2009, Globalization and Protection of Employment, KOF Working Paper 238.
Conclusion: While globalization is shown to loosen protection of regularly employed, we find that it tightens the labor laws protecting temporary workers.
Unionists, anti-globalization activists and politicians frequently claim that globalization lowers employment protection of workers. This paper tests this hypothesis in a panel of 28 OECD countries from 1985 to 2003, differentiating between protection of regular and temporary employment.
Klomp, Jeroen and Jakob de Haan, 2009, Central Bank Independence and Financial Instability Journal of Financial Stability 5, 4: 321-338.
Conclusion: We find a significant and robust negative relation between central bank indepencence (CBI) and financial instability, which is mostly due to political independence.
It has been argued that CBI may not only be beneficial for reaching the objective of price stability, but also for maintaining financial stability. Greater independence from external pressure implies that central banks are less politically constrained in acting to prevent financial distress, while it also will allow them to act earlier and more decisively when a crisis erupts. We estimate the relation between CBI and newly constructed measure of financial instability using a dynamic heterogenous panel model for the period 1985-2005 with a large set of control variables.
Koster, Ferry, 2009, Risk Management in a Globalizing World. An Empirical Analysis of Individual Preferences in 26 European Countries, International Social Security Review 62, 3: 78-98.
Conclusion: The consequences of social openness for the people's preferences confirm the hypothesis that people prefer voluntary solidarity to compulsory solidarity and the market mechanism.
The risks that individuals face in everyday life, such as illness and unemployment, can be covered using market, government, or community mechanisms. The market can function with a lower level of solidarity compared to the other two mechanisms; the government mechanism requires the highest level of compulsory solidarity and communities are associated with voluntary solidarity. Social context affects individual preferences with regard to any one of these mechanisms. This article investigates to what extent these preferences are influenced by globalization: the economic, social and political openness of countries. The dataset used in this study combines data from the European Values Study 1999-2000 (EVS), the International Monetary Fund (IMF), and the KOF Index of Globalization, and contains information about 31,554 people living in 26 European countries. The results derived from logistic multilevel analysis show that preferences towards the organization of solidarity are related to the different dimensions of globalization.
Koster, Ferry, 2009, The Welfare State and Globalisation: Down and out or too Tough to Die?, International Journal of Social Welfare 18, 2: 153-162.
Conclusion: Welfare state effort is not affected by social and political openness, while the level of generosity is negatively affected by social and political openness.
Politicians as well as researchers frequently claim that globalisation - and in particular its economic dimension - poses a threat to the welfare state. This article examines whether such a claim is justified by the empirical studies that investigate the relationship between economic openness and the welfare state. Based on the literature, two contrasting hypotheses are distinguished: the first states that economic openness does threaten the welfare state and the second argues that this is not the case. The empirical studies are systematically reviewed in this article: the analysis shows that the second hypothesis is supported most often and it is therefore concluded that economic openness does not threaten the welfare state.
Lamla, Michael, 2009, Long-run Determinants of Pollution: A Robustness Analysis, Ecological Economics 69, 1: 135-144.
Conclusion: Globalization reduces water pollution.
The paper examines how robust economic, political, and demographic variables are related to water and air pollution. Employing Bayesian Averaging of Classical Estimates (BACE) for a set of 47 countries, 33 variables and 3 proxies for air and water pollution over a period from 1980 to 1995 we confirm the Environmental Kuznets Curve hypothesis, highlight the relevance of efficient production technologies and underline the importance of inequality and resources for environmental quality.
Martinez-Vazquez, Jorge and Andrey Timofeev, 2009, A Fiscal Perspective of State Rescaling, Cambridge Journal of Regions, Economy and Society 2, 1: 85-105.
Conclusion: The role of globalization, suggested in the political economy literature, is found to be of significance in the cross-country analysis of both decentralization (positive) and government size (positive). However, the dynamic panel analysis finds a statistically significant impact of globalization only for general government consumption and this impact is negative.
Recent socio-spatial studies point out a number of ongoing trends in the 'scale division of labour of the state', including among others, 'destatization', 'denationalization' and 'internationalization'. We draw on the literature in public economics to review several approaches to measuring state rescaling. We employ these measures to produce empirical evidence on the extent of state rescaling and its determinants. We find that over the last two decades there has been a world trend towards decentralization while the average government size has not changed.
Ohadi, Sepideh and Seyed Komail Tayebi, 2009, Relationship between Globalization and Inequality in Different Economic Blocks, mimeo.
Conclusion: The results confirm mostly the hypothesis that globalization has influenced significantly and expectedly inequality to be reduced.
The objective of this paper is to evaluate the effect of globalization on income inequality among nations. We specify a panel income distribution regression model using cross-sectional data of the selected countries and relevant time series over 1985-2004. Several specified for globalization have significant and different effects on income distribution of countries with different levels of income.
In the augmented model specification, also an interacted effect of a block implementation (e.g. emerging market economies, high income, middle income and low income countries) with globalization on inequality is evaluated. The results confirm this effect significantly on income inequality.
Potrafke, Niklas, 2009, Did Globalization Restrict Partisan Politics? An Empirical Evaluation of Social Expenditures in a Panel of OECD Countries, Public Choice 140: 1-2, 105-124.
Conclusion: Two basic results emerge: First, at times when globalization proceeded at an average pace, partisan politics had no effect on social expenditures, but leftist governments increased social expenditures when globalization was proceeding rapidly. Second, policies differed in the 1980s and 1990s: Leftist governments pursued expansionary policies in the 1980s. Yet partisan politics disappeared in the 1990s, but not because of globalization.
This paper evaluates empirically how, in the course of globalization, partisan politics affected social expenditures in a panel of OECD countries. An updated indicator of government ideology is introduced and its interaction with the KOF index of globalization is investigated.
Weiffen, Brigitte, 2009, Entstehungsbedingungen von Demokratien. Interne und externe Einflüsse im Vergleich (Baden-Baden: Nomos).
Conclusion: Economic and social globalization are highly correlated with the level of democracy. While domestic socioeconomic development by itself contributes to democracy, its beneficial effect is intensified when it is accompanied by a high level of economic and social globalization. Additionally, political globalization is shown to be particularly helpful for democratization.
Social science has developed an immense amount of theoretical and empirical research on the conditions fostering and hindering the development of democracy. However, given the increasing international interconnectedness in the economic, political and social realm, the determinants of democratization have to be reconsidered. This book undertakes a thorough comparison of domestic and international influences on democratic development by means of global cross-country regression analyses and structured, focused comparison of four Latin American countries.
Bezemer, Dirk and Richard Jong-A-Pin, 2008, World on Fire? Democracy, Globalization and Ethnic Violence, MPRA Paper 7027.
Conclusion: The negative impact of democracy on ethnic conflict in Sub-Saharan Africa increases with globalization. The combination of democracy and globalization increase ethnic violence in countries without market-dominant minorities.
Recent studies suggest that democracy and globalization lead to ethnic hatred and violence in countries with a rich ethnic minority. We examine the thesis by Chua (2003) that democratization and globalization lead to ethnic violence in the presence of a market-dominant minority. We use different data sets to measure market dominant minorities and employ panel fixed effects regressions for a sample of 107 countries over the period 1984-2003. Our model contains two-way and three-way interactions to examine under which conditions democracy and globalization increase violence. We find no evidence for a worldwide Chua effect, but we do find support for Chua's thesis for Sub-Saharan Africa.
Bjørnskov, Christian, Axel Dreher and Justina A.V. Fischer, 2008, Cross-Country Determinants of Life Satisfaction: Exploring Different Determinants across Groups in Society, Social Choice and Welfare 30, 1: 119-173.
Conclusion: Globalization does not significantly affect life satisfaction.
This paper explores a wide range of cross-country determinants of life satisfaction exploiting a database of 90,000 observations in 70 countries. We distinguish four groups of aggregate variables as potential determinants of satisfaction: political, economic, institutional, and human development and culture. We use ordered probit to investigate the importance of these variables on individual life satisfaction and test the robustness of our results with Extreme Bounds Analysis. The results show that only a small number of factors, such as openness, business climate, postcommunism, the number of chambers in parliament, Christian majority, and infant mortality, robustly influence life satisfaction across countries while the importance of many variables suggested in the previous literature is not confirmed. This remains largely true when the analysis splits national populations according to gender, income, and political orientation also.
Brooks, Sarah M., 2008, Globalization and Risk Redistribution in the Developing World, Ohio State University, mimeo.
Conclusion: Risk protection in developing countries has been much less supportive of economic integration than it has been in advanced industrial nations.
State intervention to smooth over distributional conflicts and dampen insecurity in lower-income nations thus may not follow closely the logic observed among the rich nations. The analysis finds evidence to suggest that risk protection systems in developing countries mediate globalization's effect on public sector interventions in ways that differ sharply from the dynamic observed in the developed economies.
Camarero, Mariam, Renato G. Flôres and Cecilio Tamarit, 2008, A "SURE" Approach to Testing for Convergence in Regional Integrated areas: An Application to Output Convergence in Mercosur, Journal of Economic Integration 23, 1: 1-23.
Conclusion: The empirical results for Mercosur countries show that there is evidence of catching up of the small countries towards Brazil and, to some extent, Argentina. In contrast, the evidence of catching-up among the larger countries is weaker.
In this paper the use of a sequential multivariate approach to test for convergence is proposed. These tests allow us to reconcile the time series literature with the cross-sectional dimension which is basic when testing for convergence in regional blocs. In addition, this methodology helps to avoid the problem due to the limited dataset length. We apply multivariate unit root tests in two stages. First, we test for non-convergence without identifying the countries within the group that effectively converge and, in a second stage, the countries that converge are identified. The SURE technique allows for the existence of correlations across the series without imposing a common speed of mean reversion.
Charron, Nicholas, 2008, The Impact of Socio-Political Integration and Press Freedom on Corruption in Developing Coutries, QoG Working Paper Series 4.
Conclusion: For social openness to be an effective tool in fighting corruption, a certain level of domestic press freedoms must first be in place, otherwise information is censured and people do not become informed.
Do domestic institutions filter the effects of international openness on levels of government corruption? The analyses in this study demonstrate a more nuanced understanding of a previously understood phenomenon - that while openness has a negative relationship with corruption, sometimes this relationship is substantially influenced by the domestic context, a relationship that has been underdeveloped by previous empirical studies. However, as opposed to mainly economic factors of openness such as levels of trade or capital freedom, in this paper another salient type of globalization is highlighted - social and political integration. Focusing exclusively on a sample of over 90 developing countries, it is found that the effect of openness on corruption is conditioned by domestic institutions. Namely, there is examined the level of press freedoms in a country as an intervening variable. The empirical evidence suggests that while freedom of the press is less important for political openness to have a significant impact in combating corruption, a free press is essential for social openness to effect negatively government corruption.
Dreher, Axel and Noel Gaston, 2008, Has Globalisation Increased Inequality?, Review of International Economics 16, 3: 516-536.
Conclusion: Economic globalisation (and to a lesser extent political integration) have exacerbated wage inequality in developed countries.
There is no shortage of theories that purport to explain why globalization may have adverse, insignificant, or even beneficial effects on income and earnings inequality. Surprisingly, the empirical realities remain an almost complete mystery. In this paper, we use data on industrial wage inequality, household income inequality as well as measures of the economic, social and political dimensions of globalization to examine this controversial issue. Overall, while we find that globalization has exacerbated inequality; this is particularly true in the case of income inequality in OECD countries.
Dreher, Axel, Jan-Egbert Sturm and Heinrich W. Ursprung, 2008, The Impact of Globalization on the Composition of Government Expenditures. Evidence from Panel Data, Public Choice 134, 3-4: 263-292.
Conclusion: Globalization does not affect the composition of government expenditures.
According to the disciplining hypothesis, globalization restrains governments by inducing increased budgetary pressure. As a consequence, governments may attempt to curtail the welfare state, which is often seen as a drag on international competitiveness, by reducing especially their expenditures on transfers and subsidies. This globalization-induced welfare state retrenchment is potentially mitigated by citizens' preferences to be compensated for the risks of globalization ("compensation hypothesis"). Employing two different datasets and various measures of globalization, we analyze whether globalization has indeed influenced the composition of government expenditures. For a sample of 60 countries, we examine the development of four broad expenditure categories for the period 1971-2001: capital expenditures, expenditures for goods and services, interest payments, and subsidies and other current transfers. A second dataset provides a much more detailed classification: public expenditures, expenditures for defence, order, economic affairs, environment, housing, health, recreation, education, and social expenditures. However, this second data set is only available since 1990-and only for OECD countries. Our results show that globalization did not influence the composition of government expenditures in a notable way.
Fischer, Justina A.V., 2008, Is Competition Good for Social Trust? Cross-Country Evidence Using Micro-Data, Economics Letters 100, 1: 56-59.
Conclusion: Economic globalization aggravates the trust-building effect of individuals' market integration: stronger competition induced through integration into the international economy makes persons with many commercial contacts trust more strongly in their peers in general.
This paper empirically analyzes the implication of market competition for generalized trust of about 80'000 individuals in more than 60 countries from the World Values Survey. We find that the trust-generating effect of market competition depends on individual market integration.
Gassebner, Martin, Noel Gaston and Michael Lamla, 2008, Relief for the Environment? The Importance of an Increasingly Unimportant Industrial Sector, Economic Inquiry 46, 2: 160-178.
Conclusion: Globalization does not significantly affect the stringency of environmental standards.
Deindustrialisation, stagnant real incomes of production workers and increasing inequality are latter-day features of many economies. It's common to assume that such developments pressure policy-makers to relax environmental standards. However, when heavily polluting industries become less important economically, their political importance also tends to diminish. Consequently, a regulator may increase the stringency of environmental policies. Like some other studies, we find that declining industrial employment translates into stricter environmental standards. In contrast to previous studies, but consistent with our argument, we find that greater income inequality is associated with policies that promote a cleaner environment.
Gaston, Noel, 2008, Understanding Australian Income Inequality: The Proper Role Played by Globalisation, De-Unionisation and the Terms of Trade, Agenda 15, 1: 49-63.
Conclusion: 'Globalisation' - broadly-defined - has increased income inequality. However, this impact is not attributable to increased trade openness and falling trade barriers.
This paper examined the key determinants of Australia's income inequality. The findings are intriguing and will hopefully encourage other researchers to further explore the issue. Among the findings is that more trade and improved terms of trade are equity-enhancing. Institutionally, de-unionisation of the labour force is having the anticipated adverse effect on income inequality. On the other hand, the welfare state has responded; rising minimum wages - the anchor upon which low-skilled and semi-skilled workers have their own incomes determined - have reduced income inequality. In addition, the progressivity of the income tax system has served to lessen the impact on low-income workers. The global environment, and Australia's role in that environment, is a starkly different and possibly more uncertain one than Australians found ourselves in a quarter-century ago.
Gemmell, Norman; Richard Kneller and Ismael Sanz, 2008, Foreign Investment, International Trade and the Size and Structure of Public Expenditures, European Journal of Political Economy 24: 151-171.
Conclusion: Economic globalization reduces the share of government expenditures allocated to social security.
The 'compensation' and 'efficiency' hypotheses propose that globalization affects both the total, and composition of, public expenditures in different ways. Under the former, economic insecurity leads to expanding public sectors and social expenditures, whereas under the efficiency hypothesis, demands for lower taxes encourage smaller public sectors, and especially 'privately productive' spending. We test these hypotheses for a sample of OECD countries from 1980-1997. Using both the inward stock of FDI and openness as measures of globalization we find no effect on the size of government, but FDI significantly shifts the expenditure composition towards social spending, favouring the compensation hypothesis.
Gersbach, Hans, Maik Schneider and Olivier Schneller, 2008, On the Design of Basic Research Policy, CER- ETH Economics Working Paper Series 79.
Conclusion: No clear correlation between globalization and basic research expenditures
We augment a Schumpeterian growth model with a public basic research sector to examine how much a country should invest in basic research dependent on its technological level and its openness to world trade. We find that the government should invest more in basic research the closer the country is to the world's technological frontier. Basic research expenditures are increasing in a country's degree of openness as long as innovation sizes are small. We provide explanations for the empirical evidence regarding basic research expenditures across countries.
Goodell, John W., 2008, Three Essays on the Cross-National Impact of Trust and Social and Cultural Factors on the Culture of Equity, Kent State University.
Guevara Hidalgo, Esteban, 2008, Common Markets, Strong Currencies and the Collective Welfare, Quantitative Finance Papers arXiv:0710.1307.
Conclusion: The globalization process obeys a collective welfare principle in where the maximum payoff is given by the equilibrium of the system and its stability by the maximization of the welfare of the collective over the individual welfare.
The so called “globalization” process (i.e. the inexorable integration of markets, currencies, nation-states, technologies and the intensification of consciousness of the world as a whole) has a behavior exactly equivalent to a system that is tending to a maximum entropy state. This globalization process obeys a collective welfare principle in where the maximum payoff is given by the equilibrium of the system and its stability by the maximization of the welfare of the collective besides the individual welfare. This let us predict the apparition of big common markets and strong common currencies. They will reach the “equilibrium” by decreasing its number until they reach a state characterized by only one common currency and only one big common community around the world.
Koenig, Tobias and Andreas Wagener, 2008, (Post-)Materialistic Attitudes and the Mix of Capital and Labour Taxation, CESIfo Working Paper 2366.
Conclusion: Economic globalization reduces the ratio of capital to labour taxes.
Social values shape policy outcomes. We examine the role of postmaterialism, a widely used concept in the social sciences, for the mix of capital and labour taxation chosen by a society. Following political scientist Inglehart, we define the degree of postmaterialism as the relative importance which individuals or a society as a whole ascribe to non-material values over material things. We incorporate this notion into a simple tax model for a small open economy. We show that a greater emphasis on immaterial values will lower the ratio of capital to labour taxes. Subsequently, we test our theoretical results empirically, using a panel data set comprising 17 OECD countries over the period 1981-2000. Proxies for the degree of postmaterialism are developed from the World Values Surveys. Their impact on the tax mix is highly significant and goes into the theoretically predicted direction.
Koster, Ferry, 2008, Economic Openness, Job Insecurity, and the Welfare State. A Multilevel Analysis in 25 European Countries, Leiden University.
Conclusion: The multilevel analysis shows no support for the hypotheses leading to the conclusion that the basic assumptions of the compensation explanation need to be reconsidered.
The compensation hypothesis is the most well known explanation of the empirical evidence showing a positive relationship between economic openness and the welfare state. This article argues that the core assumptions of the hypothesis can be tested with two hypotheses: (1) economic openness at the national level increases job insecurity at the individual level and (2) job insecurity at the individual level increases public spending at the national level. The combination of these two hypotheses should account for the positive relation between economic openness and public spending at the national level. Combining data from the European Social Survey (ESS), the KOF Index of Globalization, and the International Monetary Fund (IMF) allowed testing the two hypotheses on a sample of 25 European countries.
Lamo, Ana, Javier J. Pérez and Ludger Schuknecht, 2008, Public and Private Sector Wages, Co-Movement and Causality, OECD Working Paper Series 963.
Conclusion: The study finds that in the euro area and most of the countries of our sample private wages are positively and strongly correlated with public wages over the business cycle mostly contemporaneously. And short- medium and long-run co-movements are found between public and private sector wages.
This paper looks at public and private sector wages interactions since the 1960s in the euro area, euro area countries and a number of other OECD countries. The paper reports, first, a strong positive annual contemporaneous correlation of public and private sector wages over the business cycle; this finding is robust across methods and measures of wages and quite general across countries. Second, we show evidence of long-run relationships between public and private sector wages in all countries. Finally, causality analysis suggests that feedback effects between private and public wages occur in a direct manner and, importantly also via prices. While influences from the private sector appear on the whole to be stronger, there are direct and indirect feedback effects from public wage setting in a number of countries as well. We show how country-specific institutional features of labour and product markets contain helpful information to explain the heterogeneity across countries of our results on public/private wage leadership.
Law, David S., 2008, Globalization and the Future of Constitutional Rights, Northwestern University Law Review 102, 3:1278-1343.
Globalization - the drastic reduction of barriers to trans-border movement and exchange - is a phenomenon of obvious practical significance that has received little attention from American constitutional scholars. To the extent that it has received such attention at all, that attention has been largely confined to a handful of conspicuous changes in judicial behavior, such as the growth of transnational judicial dialogue and the citation of foreign law in recent Supreme Court decisions. Yet the potential impact of globalization is not limited to its effect on the travel and citation habits of judges. On a larger scale, globalization entails intensifying international competition for investment capital and human talent that may have much greater implications for the worldwide development of constitutional law. This paper aims to place globalization on the agenda of constitutional scholarship by proposing a provocative hypothesis about the impact of global investment and migration patterns on the extent to which countries uphold basic rights. One way in which countries can and do compete for financial capital and human talent is by offering bundles of rights and freedoms that are attractive to investors and elite workers. This paper argues that such competition has the potential to result in a race to the top in the areas of civil liberties and property rights. It draws upon scholarship and data from a range of disciplines - but most heavily political science and economics - to show that this race to the top hypothesis is both logically and empirically plausible. The paper also employs the concept of a world market in human rights, in which states bid for elite workers by offering both pecuniary and non-pecuniary inducements that include more or less generous bundles of rights and freedoms. Countries that do not boast an attractive bundle of this kind must compensate by offering what this article calls a freedom premium, which amounts to a competitive disadvantage in the global market for human talent.
Marshall, John and Stephen D. Fisher, 2008, Globalization and the Turnout Decline in Advanced Industrialized Democracies, 1960-2000, mimeo.
Conclusion: Other indicators of globalization are not sufficiently correlated to rule out the charge of spurious regression.
It is often believed that the globalization of recent years has led to a reduction in the domestic economic policy options available to governments. If this is the case then citizens may correspondingly feel that there has been a corresponding decline in the value of voting in general elections. This paper considers the hypothesis economic and political globalization has caused a decline in electoral turnout. This is tested using data from OECD countries over the period 1960-2000.
Milberg, William and Deborah Schöller, 2008, Globalization, Offshoring and Economic Insecurity in Industrialized Countries, United Nations, Department of Economics and Social Affairs, Working Paper 87.
Conclusion: The provision of greater social protection does not unambiguously reduce a country's export competitiveness and in some cases may even increase it.
This paper shows that a "new wave of globalization," involving extensive offshoring, has raised both actual and perceived labor market insecurity in industrialized countries. The paper analyzes various channels through which this new wave of globalization leads to economic insecurity. In particular, it emphasises the key role of overall macroeconomic conditions for spreading and sustaining the potential benefits of offshoring. It discusses and points out the inadequacies of various policy responses that industrialized countries have come up with so far to the challenges of the new of globalization and advocates urgent steps toward formulation of policies and erection of institutional structure more appropriate to confront these challenges.
Miles, Thomas J. and Eric A. Posner, 2008, Which States Enter into Treaties, and Why?, University of Chicago Law School, Working Paper 25.
Conclusion: Larger, wealthier, and less corrupt states rely most on bilateral treaties.
Treaties are the primary source of international law. But little is known about which countries enter into treaties, which forms the treaties take, and which subjects they address. In addition, the literatures that investigate the relationship between economic growth, state size, and the quality of their institutions overlook the role of treaties. We remedy these omissions by assembling a comprehensive database on treaty-making and conducting empirical tests of hypotheses derived from the literature but that incorporate states' incentives to enter treaties. We find, among other things, that larger, wealthier, and less corrupt states rely on bilateral treaties the most; smaller states are more likely to enter multilateral treaties; and larger states that enter multilateral treaties are more likely than small states to do so subject to reservations. Bilateral treatymaking with respect to economic subjects correlates with government efficiency and economic growth.
Naghshpour, Shahdad and Joseph J. St. Marie, 2008, Emerging no More: Do Emerging Market Economies Owe Their Success to Globalisation?, International Journal of Trade and Global Markets 1, 3: 266-280.
Conclusion: Emerging economies are more globalised than others.
The influential weekly The Economist recently proclaimed that emerging economies have reached a milestone by producing more than half the world's GDP. The Economists' argument suggests that emerging economies have embraced globalisation and integrated them into the international economic and trade systems. The implications for developed economies are ominous - slower growth, higher inflation, and lower wage growth. The enigma of globalisation and emerging economies are explored by decomposing them into economic, social, and political factors. We engage the globalisation literature by testing common assumptions of globalisation in emerging economies.
Conclusion: Compared to technological change, globalization does not have a strong effect on youth unemployment.
The aim of the study is to describe and explain the evolution of education-dependent unemployment risks for young people in 20 European countries for the period from 1992 to 2005. We try to assess whether this period is characterized by a general rise in inequality in the distribution of unemployment risk across education groups. Furthermore, we test to what extent structural changes, i.e. technological change, educational expansion and globalization, are associated with observed changes in inequality.
Raab, Marcel, Michael Ruland, Benno Schönberger, Hans- Peter Blossfeld, Dirk Hofäcker, Sandra Buchholz and Paul Schmelzer, 2008, GlobalIndex. A Sociological Approach to Globalization Measurement, International Sociology 23, 4: 596- 631.
This article suggests a multidimensional globalization measure, encompassing economic, (socio)technological, cultural and political dimensions of global change. This measure builds on previous work by Dreher, Lockwood and Redoano, the OECD and Kearney, but extends it by additional dimensions and indicators that represent central facets of a genuine sociological concept of globalization. The article first describes in detail the multidimensional nature of the globalization process and then develops an overall sociological index of globalization, which the authors call GlobalIndex. This index covers the development of globalization in 97 different countries from 1970 to 2002. Using the GlobalIndex, the authors describe the development of globalization on a worldwide scale as well as for different country contexts. Finally, they include the GlobalIndex as an explanatory variable in two micro-level longitudinal analyses of labor market transitions during the early career period in Germany and the UK.
Schmelzer, Paul, 2008, Increasing Employment Instability Among Young People? Labor Market Entries and Early Careers in Great Britain since the 1980s, in: Hans-Peter Blossfeld, Sandra Buchholz, Erzsébet Bukodi and Karin Kurz (eds.), Young Workers, Globalization and the Labor Market Comparing Early Working Life in Eleven Countries (Cheltenham, UK/Northampton, MA: Edward Elgar).
Conclusion: U.K. economic globalization index deteriorates the chances of successful transitions; the worldwide globalization index seems to facilitate transition into the labor market.
Since the 1980s Great Britain has experienced radical flexibilization and deregulation of the labor market which have been accelerated by the processes of globalization. We suppose that these changes are especially pronounced for younger generations since they are devoid of work experience, lobby, networks, and seniority. Thus, in our first subject we focus on the destabilization of the employment careers of young people. The second subject of our study investigates which groups are especially exposed to increasing market risks. Both issues will be approached by taking into account national institutional settings. By surveying the duration until initial job attainment and the quality of the first job we will capture the school-to-work transitions. The upward and downward mobility, the risks of unemployment, and the transition to the reemployment will shed light on the early careers of the young entrants. The results of our analyses reveal that the duration until initial employment didn't change over time. But the share of precarious and atypical forms of work increased dramatically since 1980. Since in the British context the quality of initial employment is more an indicator for a deteriorating situation than the time spent job searching, we confirm our assumption about increasing difficulties of transitioning into the first job. With respect to the early careers we observe a clear picture of destabilization of the early careers of the young generation. The risks of moving downward and of becoming unemployed and also the chances of moving upward and becoming re-employed increased over the cohorts considerably. The deterioration of school-to-work transition and the destabilization of early careers are strongly dependent on the individual attributes and the path dependencies of one's life course. We can confirm our hypothesis of the growing inequalities among different groups. The entrants who start their first job in a higher occupational class are more likely to get full and permanent contracts and are protected from the risk of becoming unemployed. The welleducated who occupy better positions are better protected from employment risks, and display better chances of becoming established on the labor market. Disadvantageous positions evolve path dependencies over one's life course impeding the establishing processes on the labor market.
Vadlamannati, Krishna Chaitanya, 2008, Do Elections Slow Down Economic Globalization Process in India? It's Politics Stupid?, MPRA Paper 10139.
Conclusion: As incumbent government in India nears the scheduled elections, economic globalization process keeps slowing down, while this is exactly opposite during the early years of incumbent government in office.
It is investigated whether elections slow down the economic globalization process. The theoretical underpinning is that policies of economic globalization lead to economic and social hardships in short run but benefit the economy in the long run. The motto behind slowing down the economic globalization process before elections is that it leads to polarization of voters and thus negatively affects the incumbent government.
Beer, Paul de and Ferry Koster, 2007, Voor elkaar of uit elkaar? Individualisering, globalisering en solidariteit (Amsterdam: Aksant).
Veel mensen nemen tegenwoordig als vanzelfsprekend aan dat de bereidheid om iets voor een ander te doen afneemt. Hierdoor zou een van de pijlers onder de verzorgingsstaat afbrokkelen. De Nederlandse verzorgingsstaat staat dan ook al een kwart eeuw onder druk. Sinds de jaren tachtig is er een onafzienbare reeks van hervormingen van het sociale stelsel doorgevoerd en nog lijkt het einde niet in zicht. Twee veel genoemde redenen waarom de solidariteit afneemt zijn de individualisering en de globalisering. Naarmate de individualisering doorzet zouden mensen steeds meer op hun eigen belang zijn gericht en steeds minder bereid zijn bij te dragen aan collectieve voorzieningen. Globalisering zou tot gevolg hebben dat een dure verzorgingsstaat in de internationale concurrentiestrijd niet meer te handhaven is. Als de landsgrenzen vervagen is het bovendien steeds minder duidelijk met wie we eigenlijk solidair (moeten) zijn. Dit boek gaat over de vraag of individualisering en globalisering daadwerkelijk een bedreiging vormen voor de solidariteit, en daarmee voor de verzorgingsstaat. Het antwoord op deze vraag blijkt veel genuanceerder en minder eenduidig dan de stellige uitspraken die hierover vaak worden gedaan, suggereren. De termen individualisering, globalisering en solidariteit hebben uiteenlopende betekenissen en laten in de afgelopen 30 jaar allerminst een rechtlijnige ontwikkeling zien. Vervolgens beantwoordt het boek de vraag in hoeverre individualisering en globalisering de solidariteit beïnvloeden en welke consequenties dit heeft voor de toekomst van de verzorgingsstaat.
Bentolila, Samuel, Juan J. Dolado and Juan F. Jimeno, 2007, Does Immigration Affect the Phillips Curve? Some Evidence for Spain, IZA DP 3249.
Conclusion: The fall in unemployment since 1995 would have increased inflation by 2.5 percentage points per year if it had not been offset by immigration.
The Phillips curve has flattened in Spain over 1995-2006: unemployment has fallen by 15 percentage points, with roughly constant inflation. This change has been more pronounced than elsewhere. We argue that this stems from the immigration boom in Spain over this period. We show that the New Keynesian Phillips curve is shifted by immigration if natives' and immigrants' labour supply or bargaining power differ. Estimation of the curve for Spain indicates that the fall in unemployment since 1995 would have led to an annual increase in inflation of 2.5 percentage points if it had not been largely offset by immigration.
Bhattacharyya, Subrata, 2007, Globalization: The Long and Short of It, Counterviews Webzine 1, 1.
In this brief article the author intends and attempts to introduce to and familiarise with the non-economist, non-specialist readers some of the prominent characteristics of `Globalization', with special emphasis on economic globalization.
Buch, Claudia M., Gayle DeLong and Katja Neugebauer, 2007, International Banking and the Allocation of Risk, IAW Discussion Paper 32.
Conclusion: Economic and political globalization helps to reduce bank risk in OECD countries, while in non-OECD countries, political globalization increases bank risk.
Macroeconomic risks could magnify individual bank risk. Mitigating the influence of economy-wide risks on banks could therefore be very important to maintain a smooth-running banking system. In this paper, we explore the extent to which macroeconomic risks affect banks. We use a bank-level dataset on over 2,000 banks worldwide for the years 1995-2002 to study the effect of macroeconomic volatility, the openness of the banking system, and banking regulations on bank risks. Our measure of bank risk is the volatility of banks' pretax profits. We find that macroeconomic volatility increases banks' profit volatility and that international openness of the banking system lowers bank risk. We find no impact of banking regulation on profit volatility. Our findings suggest that if policymakers want to lower bank risk, they should seek to lower macroeconomic volatility as well as increase openness in the banking system.
Dischinger, Matthias, 2007, Profit Shifting by Multinationals: Indirect Evidence from European Micro Data, University of Münich, Discussion Paper 2007-30.
Conclusion: Globalization increases profits before taxes.
We provide indirect empirical evidence of profit shifting behavior by multinational enterprises. This issue is analyzed in an econometric panel study for the years 1995 to 2005 and additionally in a cross-section for 2004 using a large micro database of European subsidiaries of multinationals (AMADEUS) which includes detailed balance sheet items. Our results show a decrease in the unconsolidated pre-tax profits of an affiliated company of approximately 7% if the difference in the statutory corporate tax rate of this affiliate to its parent increases by 10 percentage points. Various robustness checks support our profit shifting evidence. Furthermore, the results suggest an overall shift of profits out of the European Union. In addition, we provide evidence that a higher parent's ownership share of its subsidiary leads to intensified profit shifting behavior.
Dreher, Axel and Noel Gaston, 2007, Has Globalization Really Had No Effect on Unions?, Kyklos 60, 2: 165-186.
Conclusion: Social globalization decreases unionization.
For a number of OECD countries, the deterioration of labour market outcomes for less-skilled workers since the early 1980's has coincided with a steady decline in union membership. Globalisation is often held to be a major contributor to both developments. However, recent studies fail to find evidence to support the presumption that globalisation adversely affects unions. Revisiting this issue by using a novel globalisation index we find that globalisation has indeed contributed to deunionisation. In delving further into the issue, we find that it is social integration, rather than economic or political integration, that has been the main contributor to the decline in union membership.
Ebenthal, Sebastian, 2007, Messung von Globalisierung in Entwicklungsländern: Zur Analyse der Globalisierung mit Globalisierungsindizes, Berichte aus dem Weltwirtschaftlichen Colloquium der Universität Bremen 104.
Conclusion: Ein Index speziell für diese Länder ist nötig und kann mit geeigneten Variablen und einer angepassten Gewichtung eine genauere Messung und, daraus resultierend, eine bessere Beurteilung der Gestaltungsmöglichkeiten der Globalisierung erbringen.p>
This paper first sets out to describe the importance of the measurement of globalisation especially in developing countries. Existing results are discussed and new possibilities are highlighted. In a second step the existing globalisation indicators are presented. The main focus lies on indexes of several variables. In a last chapter it is examined whether these methods are appropriate for the measurement of globalisation in developing countries. The idea for a globalisation index for developing countries is introduced and first important elements are shown.
Gaston, Noel and Gulasekaran Rajaguru, 2007, Has Globalisation Increased Australian Inequality?, GDC Working Paper 7.
Conclusion: Globalisation has increased income inequality.
In this paper we examine the relationship between income inequality and globalisation for Australia.
Hajer, Jesse, 2007, Effects of Globalization on Social Public Expenditures and Tax Revenues in OECD Countries, mimeo.
Conclusion: Globalization does not affect government expenditure and revenue.
Controversy exists regarding the relationship between globalisation and the size of government: some argue that globalisation forces government to reduce its role in the economy due to the competitive pressures unleashed by economic liberalisation; others argue that increased liberalisation necessitates increased government redistribution, and point to rising social public expenditure and taxation as a proportion of GDP as evidence. This paper is an econometric analysis of the effect of globalisation on social public expenditures and taxation as a proportion of GDP. The sample is a panel of 19 OECD countries from 1980 to 2001. Total trade as a proportion of GDP and an index of economic globalisation constructed by Dreher (2005) are used to proxy for the more ambiguous concept of globalisation. Preliminary results indicate that globalisation is negatively correlated with social public expenditures as a proportion of GDP regardless of the globalisation proxy used, in both the levels and growth models. The results on the relationship between taxation and globalisation are more ambiguous: tax revenues as a proportion of GDP are only significantly (and negatively) correlated with globalisation in the growth model when proxied by total trade.
Jacoby, Wade, 2007, EU Enlargement: Managing Globalization by Managing Central and Eastern Europe, mimeo.
Conclusion: Disentangling the strategies of OMS actors to manage globalization by managing CEE will be a tremendous challenge.
A substantial literature focuses on EU efforts to manage the behavior of economic rivals, often at the cost of limiting EU members’ own national room for maneuver in the name of a common trade policy. This memo focuses on a different phenomenon: the management of prospective members who are not yet major economic rivals to member states. Poor areas next door often inspire both hope and fear in rich areas. My memo is concerned with the Eastern enlargements of the EU in 2004 (ten states) and 2007 (two more) and how these enlargements fit with notions of managed globalization, as defined by the organizers.
Jamison, Eliot A., Dean T. Jamison and Eric A. Hanushek, 2007, The Effects of Education Quality on Income Growth and Mortality Decline, Economics of Education Review 26, 6: 771-788.
Conclusion: Globalization increases economic growth.
Previous work shows that higher levels of education quality (as measured by international student achievement tests) increases growth rates of national income. This paper begins by confirming those findings in an analysis involving more countries over more time with additional controls. We then use the panel structure of our data to assess whether the mechanism by which education quality appears to improve per capita income levels is through shifting the level of the production function (probably not), through increasing the impact of an additional year of education (probably not), or through increasing a country's rate of technological progress (very likely). Mortality rates complement income levels as indicators of national well-being and we extend our panel models to show that improved education quality increases the rate of decline in infant mortality. Throughout the analysis, we find a stronger impact of education quality and of years of schooling in open than in closed economies.
Kalmijn, Matthijs and Frank van Tubergen, 2007, Explaining Group Differences in Ethnic Intermarriage: A Comparative Analysis of Immigrant Children in the United States, Tilburg University & Utrecht University, mimeo.
Conclusion: Immigrant children who come from countries that more strongly participate in cultural globalization are less likely to marry endogamously.
Although there is a large literature describing the patterns, trends, and determinants of ethnic intermarriage, the comparative perspective on intermarriage has remained underdeveloped. As a result, little is known about the validity of group-level explanations of intermarriage, despite the fact that such explanations are often invoked in explaining why certain groups are ‘closed’ whereas others are relatively ‘open.’ We develop a comparative perspective by analyzing the marriage choices of almost 100 different ethnic groups in the United States, using a multilevel (logit) approach in which individual and contextual determinants of intermarriage are included simultaneously, thereby controlling for compositional influences in testing the influence of group-level explanations. Our analyses show that there are large differences in endogamy across groups. Part of these differences are related to compositional effects. After these are taken into account, however, both structural and cultural group-level factors have significant effects on endogamy. Cultural explanations – which focus on the role of norms and preferences play a more important role than structural explanations – which focus on meeting and mating opportunities. Our results reinforce the common but untested interpretation of endogamy in terms of ‘group boundaries.’ We end with suggestions for expanding the comparative approach in future research.
Koster, Ferry, 2007, Globalization, Social Structure, and the Willingness to Help Others: A Multilevel Analysis Across 26 Countries, European Sociological Review 4: 1-20.
Conclusion: Economic and social openness do not affect the intention to help the sick and disabled, while the willingness to help immigrants is positively related to economic and social openness.
This article investigates whether the process of globalization through which countries become increasingly interconnected is related to people's intention to help others in society. The willingness to help others may be lower in open countries because of more porous national boundaries and lower social cohesion. On the other hand, the openness of countries can also strengthen local structures and increase the awareness of mutual interdependence. Whether globalization is negatively or positively related to the willingness to help others is assumed to dependent on the social structure of countries. In this article hypotheses are tested using individual level data from the European Values Study and country level data from the KOF Index of Globalization, the Eurobarometer, and the International Monetary Fund. The combined dataset includes 31,554 individuals living in 26 European countries. The multilevel analyses show that economic and social openness are not related to the intention to help sick and disabled. The willingness to help immigrants is positively related to economic and social openness. The relationship between openness at the national level and the individual citizen's willingness to help immigrants is explained by the positive information about the behavior of others.
Lovely, Mary and David Popp, 2007, Trade, Technology and the Environment: Why Do Poorer Countries Regulate Sooner?, Syracuse University, NBER Working Paper 14286.
Conclusion: Economic restrictions do not robustly affect environmental regulations.
While there has been a proliferation of work on environmentally-friendly innovation, nearly all of these studies have focused on highly-developed economies. These countries perform most of the world's R&D and are typically the first to enact new environmental regulations. However, while environmental policy in high income is likely to induce new innovations needed to comply with more stringent regulations, for other countries, the technologies needed to comply with new regulations will already be in use elsewhere in the world when the decision to regulate is made. Thus, rather than asking to what extent environmental regulation induces new environmental innovation, we instead ask to what extent the availability of new technology influences the adoption of new environmental regulations. We begin with a general equilibrium model of a small, open economy, focusing on the political economy decision to regulate emissions. Using a newly-created data set of emission regulations for coal-fired power plants, we test the model's predictions using a hazard regression of the diffusion of environmental regulation across countries. We show that advances in available pollution control technology do lead to earlier adoption, ceteris paribus, of regulation in developing countries. Moreover, this result is stronger for more open economies, suggesting that free trade increases access to environmentally-friendly technologies. In addition, political economy variables, such as the size of the domestic coal industry, are also important.
Pehnelt, Gernot, 2007, Globalisation and Inflation in OECD Countries, Jena Economic Research Paper 55.
Conclusion: Globalization reduces inflation.
During the last two decades, the world has experienced a remarkable process of disinflation, with average inflation rates in industrialized countries falling by 10 percentage points and an even sharper decline of the mean rate of inflation in developing countries. Parallel to the decline in inflation rates, a tremendous increase in economic integration - often referred to as globalisation - has been taking place. In this article, we analyse the effects of globalisation on inflation in OECD countries. We theoretically outline different channels through which globalisation may have influenced inflation dynamics and give an overview on the existing empirical evidence on this issue. In the empirical analysis we show that globalisation has contributed to the disinflation process in OECD countries since the 1980s. Inflation rates became much less prone to domestic parameters, especially the domestic output gap. Global factors such as the output gap of the main trading partners became more important in determining national inflation rates. Furthermore, economic freedom and the degree of globalisation are positively related to the disinflation process. Central bank independence seems to have contributed to the decline in inflation rates among OECD countries process, but the effect is rather modest. Though the inertia of inflation can still be observed, the persistence of inflation has considerably declined since the early 1990s.
Pokarier, Christopher, 2007, Open, Secure, Influential? Contemporary Issues in Japan's International Economic Engagement, in: Marie Pangestu and Ligang Song (eds.), Japan's Future in East Asia and the Pacific (ANU E Press and Asia Pacific Press: Canberra).
Conclusion: Established structures of producer, legislative and bureaucratic interests have interacted historically to present apparently formidable barriers to a major change in Japan’s foreign economic policy preferences. Nonetheless, the Japanese economy, through both long established dynamics of policy liberalisation and private sector initiative, has become deeply integrated into the Asia Pacific regional and global economies.
Japan exhibits strong concerns about being what may be termed ‘open, secure, and influential’ in its international economic engagement. This chapter explores the imperatives behind, the deep tensions within, and the prospects for, these aspirations. Japan’s recently more uncertain international political environment, and its policy responses, have been well explored from conventional security perspectives.
Shabbir, Ghulam and Mumtaz Anwar, 2007, Determinants of Corruption in Developing Countries, The Pakistan Development Review 46, 4: 751-764.
Conclusion: Socio-political and religious norms are so weak that they can not affect the corruption level in developing countries.
The empirical findings of the study indicates that all economic determinants are negatively related to the perceived level of corruption except distribution of income and noneconomic determinants are not significantly explaining the variations in the level of corruption.
Stanton, S. Jr., Joseph J. St. Marie and Shadad Naghshpour, 2007, The Effects of Globalization on Ethnic Conflict; A Cross-Sectional Time-Series Analysis, 1970-2003, University of Southern Mississippi, mimeo.
Conclusion: Cultural engagement in social forms and political forms leads to increased conflict. Economic engagement led to a decrease in conflict behavior, while political globalization increased both protest and rebellion.
While one may argue that the world has indeed been flattened by globalization and westernization a more appropriate analogy would be of a carpet spread out over messy floor. Certainly there are flat spots but there are also humps and bumps of differing size and magnitude. These bumps are the object of this paper. We ask a simple question: do globalization and westernization affect ethnic conflict? To this end we will examine how globalization in its constituent parts affects ethnic conflict. First, we provide analytical distinctions between our two theoretical concepts. Second, we outline the literature pertaining to our research question and third propose hypotheses to test. In a fourth section we sketch out the methods we utilize and present our results. We conclude and explore avenues for further research in a final section.
Tavares, Samia Costa, 2007, Democracy and Trade Liberalization, Rochester University.
Conclusion: Democracy is more likely to lead to openness than vice-versa.
The 1980s and 90s witnessed a worldwide surge towards democracy, as various dictatorships collapsed. This paper uses a sample of up to 133 countries for the period 1960-2004 to explore the relationship between regime change and trade policy. In particular, it seeks to investigate the following questions: does democratization induce a country to liberalize trade? Do countries that remained closed still move towards relatively freer trade? And what about trade liberalization, is it significant in bringing about democratization? Results suggest that whereas becoming more democratic does lead to greater openness, it depends on how each are measured. The effect of globalization on democracy, however, is mostly insignificant, suggesting that democracy is more likely to induce openness than vice-versa.
Torgler, Benno, 2007, Trust in International Organizations: An Empirical Investigation Focusing on the United Nations, Review of International Organizations 3, 1: 65-93.
Conclusion: Stronger capacity to act globally in economic and political environment increases trust in the UN.
The literature on social capital has strongly increased in the last two decades, but there still is a lack of substantial empirical evidence about the determinants of international trust. This empirical study analyses a cross-section of individuals, using micro-data from the World Values Survey, covering 38 countries, to investigate trust in international organizations, specifically in the United Nations. In line with previous studies on international trust we find that political trust matters. We also find that social trust is relevant, but contrary to previous studies the results are less robust. Moreover, the paper goes beyond previous studies investigating also the impact of geographic identification, corruption and globalization. We find that a higher level of (perceived) corruption reduces the trust in the UN in developed countries, but increases trust in developing and transition countries. A stronger identification with the world as a whole also leads to a higher trust in the UN and a stronger capacity to act globally in economic and political environment increases trust in the UN.
Tsai, Ming-Chang, 2007, Does Globalization Affect Human Well-Being? Social Indicators Research 81, 1: 103-126.
Conclusion: Globalization increases human welfare.
The prevailing theorizing of globalization's influence of human well-being suggests to assess both the favorable and unfavorable outcomes. This study formulates a dialectical model, exploits a comprehensive globalization measure and uses a panel data during 1980-2000 to empirically test global flows' various human consequences. The outcomes from random effect modeling reveal significant positive impacts of economic globalization on the physical quality of life of a country. The overall globalization index is found to generate expected favorable influence on an overall human development index. Several hypotheses about globalization's negative effects through increasing societal instabilities and reducing state power and social spending are not supported in analysis. It is concluded that globalization identified by increased global flows and exchanges contributes more than hampers progress in human welfare.
Vinig, G.T. and J. de Kluijver, 2007, Does Globalization Impact Entrepreneurship? Comparative Study of Country Level Indicators, University of Amsterdam, PrimaVera Working Paper 16.
Conclusion: Globalization reduces entrepreneurial activity in low income countries but not in the overall sample.
The impact of increased level of globalization on entrepreneurship remains unexplored area within the domain of international business. In this paper we aim to explore the relationships between globalization and entrepreneurship based on a comparative study of globalization and entrepreneurship indicators at a country level. We use the Global Entrepreneurship Monitor (GEM) data for measuring level of entrepreneurship at a country level, and the KOF index of globalization for measuring level of globalization of a country. We find no statistical evidence for correlation between the level of globalization and the level of entrepreneurship at a country level when tested for all countries in our sample. When testing for low-GDP countries however we find a negative effect of globalization on entrepreneurship. The framework presented in this paper provides a starting point for study and analysis of the relationship between the level of globalization and the level of entrepreneurship.
Yakovlev, Pavel, 2007, Arms Trade, Military Spending, and Economic Growth, Defence and Peace Economics 18, 4: 317-338.
Conclusion: No country for any given five-year period in the data set ever achieves a net positive effect on economic growth from military spending and arms exports.
There is a large literature on the relationship between economic growth and defense spending, but its findings are often contradictory and inconclusive. These results may be partly due to non linear growth effects of military expenditure and incorrect model specifications. The literature also appears lacking an empirical analysis of interaction between military spending and the arms trade and the impact of these two on growth. This paper investigates this non linear interaction in the context of the Solow and Barro growth models recommended by Dunne et al. (2005). Using fixed effects, random effects, and Arellano–Bond GMM estimators, I examine the growth effects of military expenditure, arms trade, and their interaction in a balanced panel of 28 countries during 1965–2000. The augmented Solow growth model specified in Dunne et al. yields more robust estimates than the reformulated Barro model. I find that higher military spending and net arms exports separately lead to lower economic growth, but higher military spending is less detrimental to growth when a country is a net arms exporter.
Zgurovsky, A. M., 2007, Risks and Gains of Globalization for Developing Countries, Russian Journal of Earth Sciences 9: 1-16.
Conclusion: The level of integration of the US into the world economy for the last 14 years appeared to be very stable, whereas Ukraine and Russia, being transition economies, confidently developed from practically closed to liberal open economy while integrating into the rest of the world.
Today the world is changing, interrelating and integrating as fast as never before. This change has an increasing pace and an expanding character. In other words this change is called globalization. Process of globalization is experienced by every region, country, government, man and woman on Earth. It has an objective character and its own pros and cons. But what is the quantitative and qualitative effect of globalization on various states? What is the effect of this phenomenon on the main countries of our study – United States, Ukraine and Russia and what are the changes through years 2006 and 2007? To answer that we would have go through a set of calculations and analysis, as follows.
Zgurovsky, M. Z., 2007, Sustainable Development Global Simulation: Opportunities and Treats to the Planet, Russian Journal of Earth Sciences 9.
Conclusion: The model can serve as the basis for providing informed and accurate analysis to politicians for developing some recommendations regarding the ways of improving the standards of quality and safety of life in particular countries and regions of the world by the global computer simulation of sustainable development and security of world population.
The new Sustainable Development Gauging Matrix (SDGM) uses mathematical formulas to integrate a large number of indices and metrics measuring the sustainable development of countries. A set of basic global threats that generate "the conflict of XXI century" is analyzed, and by using the cluster analysis identify the impact of these threats on different countries of the world.
Al-Rodhan, R.F. Nayef, Gerard Stoudmann, Graeme Herd, 2006, Proposal for a Globalization Matrix: Quantifying Impacts and Responses, GCSP Program on the Geopolitical Implications of Globalization and Transnational Security.
This project has developed a matrix in order to better understand the policy challenges and responses posed by diverse, dynamic, topical, and contemporary issues. The ultimate aim of the project is to better comprehend the relationship between globalization and stability. While we recognize that, at first glance, the matrix is complex in nature, we nonetheless propose it as a methodological tool that can be usefully employed in policy analysis. This matrix will allow for the conceptualization and contextual investigation of certain issues and, at the same time, will highlight the security implications at the state, regional, and international level.
Bergh, Andreas, 2006, Explaining Welfare State Survival: The Role of Economic Freedom and Globalization, Ratio Working Paper 101, Ratio Institute Stockholm.
Conclusion: Globalization poses no threat to the welfare state.
Using the economic freedom index and the newly developed KOF-index of globalization, it is shown that the Scandinavian welfare states have experienced faster, bigger and more consistent increases in these areas, compared to the smaller Central-European and the Anglo-Saxon welfare states. The market economy and globalization hence do not pose threats to these welfare states, but are instead neglected factors in explaining their survival and good economic performance. Big government decreases the economic freedom index by definition, but the welfare states compensate in other areas, such as legal structure and secure property rights.
Bjørnskov, Christian, 2006, Globalization and Economic Freedom: New Evidence Using the Dreher Indices, University of Aarhus.
Conclusion: Economic and social globalization affect economic freedom, while political globalization does not.
This paper employs a panel data set to estimate the effect of globalization on four measures of economic freedom. Contrary to previous studies, the paper distinguishes between three separate types of globalization: economic, social and political. It also separates effects for poor and rich countries, and autocracies and democracies. The results show that economic globalization is negatively associated with government size and positively with regulatory freedom in rich countries; social globalization is positively associated with legal quality in autocracies and with the access to sound money in democracies. Political globalization is not associated with economic freedom.
Dreher, Axel, 2006, The Influence of Globalization on Taxes and Social Policy - an Empirical Analysis for OECD Countries, European Journal of Political Economy 22, 1: 179-201.
This paper uses panel regression for the period 1970-2000 to analyze whether globalization has influenced the OECD countries' social and overall spending, as well as the tax rates on labor, consumption and capital. Accounting for potential endogeneity of the regressors, the results show that globalization (measured by an index encompassing 23 variables) did not in general decrease leeway for independent national economic policy. Globalization even increased implicit tax rates on capital (as calculated by [Carey, D., Rabesona, J., 2002. Tax ratios on labour and capital income and on consumption. OECD Economic Studies 35]), a result that is mainly driven by economic integration. However, there seems to be competition over tax rates on capital when data based on legislation (as suggested by [Devereux, M.P., Griffith, R., 2003. Evaluating tax policy for location decisions. International Tax and Public Finance 10, 107-126]) is employed. Depending on the method of estimation, increasing social integration also influences policies, while political integration does not matter for economic policy in most specifications.
Dreher, Axel, 2006, IMF and Economic Growth: The Effects of Programs, Loans, and Compliance with Conditionality, World Development 34, 5: 769-788.
Conclusion: Globalization increases economic growth.
In theory, the IMF could influence economic growth via several channels, among them advice to policy makers, money disbursed under its programs, and its conditionality. This paper tries to separate those effects empirically. Using panel data for 98 countries over the period 1970-2000 it analyzes whether IMF involvement influences economic growth in program countries. Consistent with the results of previous studies, it is shown that IMF programs reduce growth rates when their endogeneity is accounted for. There is also evidence that compliance with conditionality mitigates this negative effect, while the overall impact, however, remains negative. IMF loans have no robust statistically significant impact.
Dreher, Axel, 2006, Does Globalization Affect Growth? Evidence from a New Index of Globalization, Applied Economics 38, 10: 1091-1110.
Conclusion: Globalization increases economic growth.
The paper develops an index of globalization covering its three main dimensions: economic integration, social integration, and political integration. Using panel data for 123 countries in 1970-2000 it is analyzed empirically whether the overall index of globalization as well as sub indexes constructed to measure the single dimensions affect economic growth. As the results show, globalization indeed promotes growth. The dimensions most robustly related with growth refer to actual economic flows and restrictions in developed countries. Although less robustly, information flows also promote growth whereas political integration has no effect.
Hattari, Rabin and S. Rajan Ramkishen, 2006, Intra-Asian FDI Flows: Trends, Patterns and Determinants, George Mason University 102566.
Conclusion: This paper has investigated trends, patterns and drivers of intra-Asian FDI flows as well as examined the main drivers of FDI flows. Economic openness promoted intra-Asian FDI flows.
According to the UNCTAD (2006), “a number of developing countries have emerged as significant sources of FDI in other developing countries, and their investments are now considered a new and important source of capital and production know-how, especially for host countries in developing regions” (p.6). The phenomenon of South–South FDI flows, particularly those arising from multinational corporations (MNCs) from China and India, has generated significant interest from policymakers, academia and the popular press in recent times. Available data from the Word Bank indicates South–South FDI to have increased almost three-fold (from US$14 billion in 1995 to US$47 billion in 2003), and accounts for almost 37 percent of total FDI flows to developing countries, up from 15 percent in 1995 (Table 1). Of the top hundred MNCs from developing economies that have the potential to become global players, 65 are from Mainland China and India (BCG, 2006; also see Aguiar et al ., 2006). The Chinese government has stated its intention to help develop 30–50 “national champions” that can “go global” by 2010 (Accenture, 2005; Sauvant, 2005, Wu, 2005). Given this, along with aggressive overseas acquisition plans by cash-rich and highly confident firms from India, Hong Kong, South Korea, and Taiwan, as well as by national holding companies in Singapore (Temasek Holdings) and Malaysia (Khazana National Berhad), outward investments by Asian companies are set to rise further.
Sirimaneetham, Vatcharin, 2006, Explaining Policy Volatility in Developing Countries, University of Bristol Discussion Paper 06/583.
Conclusion: Political Globalization does not robustly affect the volatility of macroeconomic policy.
This paper studies the causes of policy volatility in developing countries during 1970-1999. To construct composite policy volatility indicators, the paper applies a robust principal components analysis to Washington Consensus policy variables. The results suggest three dimensions of policy volatility: Fiscal, macroeconomic and development policies. The paper shows that more stable macroeconomic policy is associated with higher income growth, before turning to the determinants of volatility. Using a Bayesian approach which addresses the model uncertainty problem, the paper finds that macroeconomic policy is more volatile in countries that adopt a presidential system, have weaker political constraints, where government stability is lower, and that are former British colonies. Adopting a parliamentary regime helps to stabilize policy.
Sameti, Morteza, 2004, Globalization and Size of Government Economic Activities, Isfahan University, mimeo.
Conclusion: Globalization increases government size.
Two main aspects of globalization "economic and social globalization" and several indices for evaluation of globalization have been introduced and measured in this paper. The indices are containing of economic and social integration of globalization. Then affects of the globalization indices on government economic activities was estimated for two decade 80th and 90th. For this propose, some dimensions of globalization was reviewed in section 1, globalization and its impact on government activities in section 2, Globalization and the Size of Government in DC in comparison in LDC Countries in section 3 and globalization indices and government economic activities variation was reviewed in section 4.
Ekman, Björn, 2003, Globalization and Health: An Empirical Analysis Using Panel Data, Lund University, mimeo.
Conclusion: Globalization increases life expectancy.
Globalization has received considerable attention in the past decade or so. Its effects are suggested to impact on most aspects of economic, political, and social life, including that of the health of populations. A possible causal effect running from globalization to population health may imply important policy effects, both at the national and at the international level. The aim of this paper is to explore the relationship between globalization and public health outcomes. First, we define the two concepts and suggest possible measures. We then outline a simple analytical framework. A brief look at the recent literature is followed by a quantitative assessment using aggregate level panel data for 123 countries in the period 1975-2000. A positive (seemingly non-linear) correlation can be detected between a composite measure of globalization and population health as measured by life expectancy at birth. Finally, we discuss possible extensions of the empirical analysis and suggest a number of future research options.