Does Globalization Affect Growth? Evidence from a new Index of Globalization

Does Globalization Affect Growth? Evidence from a new Index of Globalization

april 2005 | Axel Dreher
This paper presents an index of globalization that covers three main dimensions: economic integration, social integration, and political integration. Using panel data for 123 countries from 1970 to 2000, the study empirically examines whether the overall index of globalization and its sub-indices affect economic growth. The results show that globalization promotes growth, with the most robust relationship observed between actual economic flows and restrictions in developed countries. Information flows also positively influence growth, while political integration has no significant effect. The study concludes that globalization, particularly through economic integration and information flows, is positively correlated with economic growth.This paper presents an index of globalization that covers three main dimensions: economic integration, social integration, and political integration. Using panel data for 123 countries from 1970 to 2000, the study empirically examines whether the overall index of globalization and its sub-indices affect economic growth. The results show that globalization promotes growth, with the most robust relationship observed between actual economic flows and restrictions in developed countries. Information flows also positively influence growth, while political integration has no significant effect. The study concludes that globalization, particularly through economic integration and information flows, is positively correlated with economic growth.
Reach us at info@study.space
[slides and audio] Does Globalization Affect Growth %3F Evidence from a new Index of Globalization