Empirical Evidence on Globalization Towards the Economic Growth in Developing Countries
“Economic globalization
is the economic connection of a country with the global economic system.”
It refers to the increasing interconnectedness and interdependence of economies around the world, driven by advances in technology, communication, transportation, and trade liberalization. It contains the movement of goods, services, capital, data, and people across national borders, leading to a more integrated global economy.
Heading to Global growth?
Global economic growth is projected to soften from 3% in 2018
to 2.9% in 2019 amid rising downside risks to the outlook, according to the World
Bank statement. International trade and manufacturing activity have softened,
trade tensions remain elevated, and some large emerging markets have experienced
substantial financial market pressures.
Growth among advanced economies is forecast to drop to 2% 2018,
the January 2019 Global Economic Prospects says. Slowing external demand,
rising borrowing costs, and persistent policy uncertainties are expected to
weigh on the outlook for the emerging market and developing economies. Growth
for this group is anticipated to hold steady at a weaker-than-expected 4.2%
this year.
Pros & Cons in Economical
Globalization
Pros of Economic Globalization:
Cons of Economic Globalization:
In summary, the impact of globalization on the economic
growth of developing countries is a different and complex phenomenon. While
globalization has the potential to bring significant economic benefits, it also
propose challenges and risks that need to be carefully managed. Developing
countries have experienced both positive and negative outcomes because of raise
global integration.
On the one hand, globalization has facilitated the motion of
capital, high technology, and knowledge across borders, opening up new
opportunities for economic development and growth. Foreign direct investment,
trade liberalization and access to humanity markets have enabled many
developing countries to accelerate industrialization and develop their
economies. This has resulted in increased employment, improved infrastructure
and enhance living standards for millions of people.
References
1. Bhandari AK, Heshmati A (2015) Measurement of Globalization and its Variations among Countries, Regions and over Time. IZA Discussion Paper No.1578.7. Simonsen, Mario Henrique, "Price Stabilization and Incomes Policy: Theory and the Brazilian Case Study", in Michael Bruno et al., eds., Inflation Stabilization: The Experience of Israel, Argentina, Brazil, bolivia, and Mexico, MIT Press, Cambridge, MA, 2008.https://www.fuelsandlubes.com/global-economic-growth-slow-2-9-2019-trade-investment-weaken/
The impact of globalization on economic growth in developing countries has experienced both positive and negative outcomes. I got a better understanding of this through this blog.
ReplyDeleteGood justification through pros n cons
ReplyDeletenoted & In addition, the results show that economic globalization does affect growth, whether the effect is beneficial depends on the level of income of countries
ReplyDeleteGlobalization create window of opportunities to a company in growth aspects. Grabbing it right time is way to success.
ReplyDeleteThe intricate relationship between economic globalization and growth in developing countries. It acknowledges both benefits and challenges, underlining the potential for development through increased trade, investment, and technology exchange, while also recognizing the need for cautious management due to associated risks.
ReplyDeletePut simply, globalization is the connection of different parts of the world. In economics, globalization can be defined as the process in which businesses, organizations, and countries begin operating on an international scale.You have well explained it.
ReplyDeleteEmpirical studies consistently highlight that globalization can significantly contribute to economic growth in developing countries. Increased trade, foreign direct investment, and technology transfer foster productivity and innovation. However, careful policy planning is essential to ensure equitable distribution of benefits and mitigate potential negative consequences.
ReplyDeleteEconomic globalization refers to the rising interdependence of world economies as a result of increased cross-border trade in commodities and services, the flow of international money, and the widespread and rapid diffusion of technology.
ReplyDeleteGlobalization is the process of increasing interconnectedness between countries and peoples.
ReplyDelete