The Effect of Globalization on Economic Growth with a Time-Varying Non-Parametric Approach: with an Emphasis on the Defacto and Dejure Aspects of the KOF Globalization Index

Alirezazadeh Sadaghiani, Davod; Hekmati Farid, Samad; Shahbazi, Kiumars; Mohseni Zonozi, Seyed Jamaledin

doi:10.30473/egdr.2023.65879.6615

Document Type : ORIGINAL ARTICLE

Authors

¹ Ph.D. Student in Economics, Faculty Economics, Urmia University, Urmia, Iran.

² Associate Professor, Faculty of Economics, Urmia University, Urmia, Iran.

³ Professor, Faculty of Economics, Urmia University, Urmia, Iran.

https://doi.org/10.30473/egdr.2023.65879.6615

Abstract

Globalization is an undeniable phenomenon in the current era and different theories of globalization-economic growth show that there is no theoretical agreement in this regard and there are many supporters and oppositions in this field. Considering that, firstly, globalization has different aspects including economic, cultural and political. Second, the effects of globalization are different in developing and developed countries and thirdly, according to the theoretical point of view, the effect of globalization on economic growth varies over time. Therefore, in the present study, using the time-varying non-parametric panel data model and applying three different aspects of economic, cultural and political globalization KOF index, we consider the de facto and de jure effects of the mentioned index. It has been investigated the different effects of globalization over time on the GDP per capita of countries with high per capita income (28 countries) and middle per capita income (36 countries).
The results of estimating the model used in this research based on the local linear dummy variable method for time-varying non-parametric panel data showed that except for the first few years in the period from 1980 to 2019, the economic globalization index has increased the per capita income of countries with high per capita income. However, the index of economic globalization in countries with middle per capita income had a positive effect on per capita income only in the years 1996 to 2008, and had a negative effect on it in the rest of the years. Also by dividing globalization into de facto and de jure aspects determined both de facto and de jure aspects of economic globalization during the period from 1980 to 2019 on average have led to economic growth in countries with high per capita income. But de jure aspects of economic globalization almost had a positive effect on the economic growth of countries with middle per capita income especially after 1995 to 2019 and economic globalization has a negative effect on the economic growth of these types of countries from a de facto aspect in most of the investigated years.

Keywords

Main Subjects

Globalization

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The Effect of Globalization on Economic Growth with a Time-Varying Non-Parametric Approach: with an Emphasis on the Defacto and Dejure Aspects of the KOF Globalization Index

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Volume 14, Issue 53January 2024Pages 30-13

Volume 14, Issue 53
January 2024
Pages 30-13