Another study on the Pakistan case proposed by Alam et al. 4, \({\stackrel{\sim }{\beta }}_{i}\) and \({\overbrace{\beta }}_{WFE},\) respectively, indicate the parameters obtained from pooled OLS and weighted fixed effects estimation, while \({M}_{T}\) is the identity matrix. Shahbaz, M., Shafiullah, M., & Mahalik, M. K. (2019). Since achieving these goals requires the cooperation of countries and societies, Partnership for the Goals is determined as the seventeenth SDG. Empirical results show democracy has a significant positive impact on life expectancy and it reduces infant mortality. In the context of sustainable development goals, our results show that there is no conflict between SDG3 (good health and well-being) and SDG17 (partnerships for the goals). Receiving an opportunity to extend their businesses and cooperate with foreign partners, people with high incomes obtain an opportunity to increase it even more. Latin American Research Review, 15(3), 4572. Polity IV Project: Political regime characteristics and transitions, 18002002: Dataset users manual. OECD Economic Studies, 1, 5378. Following the European exploration of the New World, globalization occurred on a grand scale; the widespread transfer of plants, animals, foods, cultures, and ideas became known as the Columbian Exchange. The rejection of the null hypothesis shows that slope coefficients of Eq. The Econometrics Journal, 11(1), 105127. Life expectancy at birth data is provided by World Bank (2019)World Development Indicators. Effects of Globalization on the Environment - Business Insights Blog Review of International Economics, 15(4), 660682. Some observers argue that a rudimentary version of world culture is taking shape among certain individuals who share similar values, aspirations, or lifestyles. In 2013, a textile factory building collapsed, killing more than 1,100 workers. The second group mostly focuses on the benefits of free trade, capital mobility, and technology transfers (Rao and Vadlamannati 2011). Politicians who have never tasted poverty do not have the urge to take action against the problems of the poor at the right time. World Development, 38(9), 11911203. The GDP per capita is also used as a control variable. One of the most critical negative effects of globalization deals with the gap between social layers ("Globalization," 2015). Named after the Swiss town that began hosting annual meetings of the World Economic Forum in 1971, these Davos insiders share common beliefs about individualism, democracy, and market economics. Journal of Financial Econometrics, 5(3), 491522. Evidence from a new index of globalization. Furthermore, GDP per capita and the proportion of white-collar workers reduce premature death for both men and women, while alcohol consumption increases it. Book The positive impact of globalization can be seen while connecting production technology. These techniques are robust whether N>T and T>N. Therefore, \({CD}_{LM}\) and bias-adjusted LM (\({LM}_{adj})\) tests are found to be appropriate and their test statistics can be calculated as follows: Equation 2 shows the calculation of Pesaran (2004) \({CD}_{LM},\) and Eq. By minimizing the BIC, we obtain \(\widehat{k}\). 2. This index has been used in previous literature as a proxy of SDG17 (Saint Akadiri et al. There are also methodological weaknesses in previous empirical studies. Those countries are Benin, Burkina Faso, Burundi, Central African Republic, Chad, Democratic Republic of Congo, The Gambia, Haiti, Madagascar, Malawi, Mali, Nepal, Niger, Rwanda, Sierra Leone, and Togo. The results we found contradict Tausch (2015)s evidences in 80 of 99 countries. They also suffer from bad health conditions such as low life expectancy, communicable diseases, and high mortality rates according to MDG indexes given above. What is Globalization? Positive & Negative Impacts of Globalization Firstly, we . (2008) as follows: where \(\stackrel{\sim }{S}\) is the Swamy test statistic and k is a number of explanatory variables. It is a consequence of cross-border business. Pesaran, M. H., & Yamagata, T. (2008). Provided by the Springer Nature SharedIt content-sharing initiative, Over 10 million scientific documents at your fingertips, Not logged in The impact of economic, social, and political globalization and The calculation of the test statistic of Swamys model is given in Eq. Political and economic stability facilitate globalization as well. Rao, B. China is a prime example of a country that has benefited immensely from globalization. There are several reasons why this might be the case, including: Access to labor: Globalization gives all nations access to a wider labor pool. As cultures advanced, they were able to travel farther afield to trade their own goods for desirable products found elsewhere. The results of OLS estimates show that globalization leads to inequality, and therefore, it reduces health performance in terms of life expectancy and infant mortality. Review of International Economics, 16(3), 516536. The result is a smaller, more connected world. Accounting for contribution of trade openness and foreign direct investment in life expectancy: The long-run and short-run analysis in Pakistan. Therefore, estimators assume parameter homogeneity are used in our analysis. Therefore, in order to determine the existence of a long-run relationship, we applied Westerlund and Edgerton (2007) panel cointegration test. According to ARDL estimation results, life expectancy is positively associated with higher levels of globalization. Swiss Economic Institute. Because of the pressure on the government about human rights, disadvantaged people are becoming able to meet their basic human needs. The effects of globalization on growth were mostly driven by free trade, international specialization, technology transfers, knowledge spillovers, and competitive markets. The results of homogeneity tests developed by Pesaran and Yamagata (2008) are given in Table 2. They also used average years of education, urban population, the number of physicians, and nutrition as control variables and the effect of economic globalization was still positive and significant. All variables transformed to the logarithmic form except democracy due to negative values. According to results, the null of unit root is accepted for all variables, while calculated CIPS statistics of first-differenced variables exceed 1% critical value. World Development Indicators. Effects of Economic Globalization - National Geographic Society On the estimation and inference of a panel cointegration model with cross-sectional dependence In panel data econometrics theoretical contributions and empirical applications. The existence of cross-sectional dependence in variables and the error term is obtained from the model analyzed with Pesaran (2004) \({\text{CD}}_{{{\text{LM}}}}\) and Pesaran et al. Economic Growth It's widely believed that increased globalization leads to greater economic growth for all parties. The Future of Jobs Report 2023 | World Economic Forum These results are contradictory to positive views on the role of globalization in public health. Franco, ., lvarez-Dardet, C., & Ruiz, M. T. (2004). The advantages of globalization are actually much like the advantages of technological improvement. It also offers broader opportunities for entrepreneurs and paves the way for innovation (Grossman and Helpman 2015: 101). 1. Globalisation is having a dramatic effect - for good or bad - on world economies and . (1999). Indeed, the working conditions of people at some points in the supply chain are deplorable. (2000). Hu, F. B. New York: Wiley. Testing for cross-sectional dependence in panel-data models. For this purpose, the role of globalization and democracy in life expectancy is empirically investigated in 16 low-income countries over the period 19702017. (2004) analyzed the impact of democracy on health utilizing political rights data of 170 countries. In order to achieve SDG3, economic, social, and political integration between countries should be encouraged and democratic institutions should be improved. Individuals living in developed countries live a healthier life compared to those living in less developed countries. The Millennium Development Goals (MDGs) consist of 8 goals, 21 targets, and 60 related indicators covering a wide spectrum of development areas such as End Poverty and Hunger (MDG 1), Universal Education (MDG 2), Gender Equality (MDG 3), Child Health (MDG 4), Maternal Health (MDG 5), Combat HIV/AIDS (MDG 6), Environmental Sustainability (MDG 7), and Global Partnership (MDG 8). As we see, three of the goals are directly associated with the health status of the people. Achieving a healthier society requires economic, social, and political integration between governments and societies. Social scientists have identified the central aspects of globalization as interconnection, intensification, time-space distanciation (conditions that allow time and space to be organized in a manner that connects presence and absence), supraterritoriality, time-space compression, action at a distance, and accelerating interdependence. In the estimation of the long-run relationship between the variables, second-generation panel data analysis methods that consider cross-sectional dependency are used. Editor of. As Dreher (2006) mentioned, despite its possible inequality effects, the net effect of globalization on development is mostly positive and our empirical work supports that idea. As a result, the positive effects are visible, since global competition leads to products of high quality. Therefore, partnerships for goals has taken its place as the 17th sustainable development target. In Eq. At the same time, democratic institutions are not developed. In low-income countries where people still suffer from having difficulty in meeting basic human needs, increasing per capita income may lead to better nutritional status, easier access to advanced treatment methods and technology. Zafar, M. W., Shahbaz, M., Hou, F., & Sinha, A. Westerlund (2007) showed that the estimation of k provides better results compared to CUP-FM estimator assuming k is known. Journal of economic perspectives, 20(3), 97120. Gives Access to a Larger Market Through globalization countries and companies have access to a bigger consumer base. According to the KOF Globalization Index published by the Swiss Economic Institute (2020), low-income countries have the lowest globalization level compared to other income groups. Their analysis includes annual data from 168 countries covering the period 19602010. It requires cooperation between governments and societies. The long-run estimation results given in Table 5 show that overall, economic, social, and political globalization are positively associated with life expectancy at 1% significance level according to both CUP-FM and BA-OLS estimators. In general, critics blame the pressures of globalization for encouraging an environment that exploits workers in countries that do not offer sufficient protections.Studies also suggest that globalization may contribute to income disparity and inequality between the more educated and less educated members of a society. Particularly rising sexual tourism and migrant sex workers increase the spread of sexually transmitted diseases such as HIV/AIDS. Fixed effects estimation results reveal a significant negative relationship between public health expenditure and women's premature death. Positive and negative aspect of globalization in tourism Please refer to the appropriate style manual or other sources if you have any questions. Safaei, J. Testing slope homogeneity in large panels. Bulletin of the world Health Organization, 79, 827833. To the best of our knowledge, it is the first study that investigates the relationship between SDG3 and SDG17. These results show that the methods to be used in the analysis of the stationarity of the variables and the determination of the long-run relationship should consider the cross-sectional dependence. When these countries are examined, it is seen that 14 of them are countries in the low and lower-middle income groups. World Bank (2019). The KOF globalisation indexrevisited. w12347). This is because globalization has led to reduced costs of goods and increased trade. Globalization and poverty (No. They used social, political, and economic globalization data separately, and the results show a significant positive effect of economic globalization on life expectancy at birth. In this study, we determined the number of common factors via the Bayesian information criterion (BIC) as follows. It is also important to examine this relationship in low-income countries since they still suffer from low levels of life expectancy, less adaptation to globalization, and poor democratic institutions compared to other income groups. . (2008). Another finding of the study is that socioeconomic factors such as income, education, and access to health care services are important determinants of health status. 1, X refers to the KOF Globalization Index developed by Dreher (2006). (2006). This aspect of globalization shows that not all change is good because although foreign trade has been created and expanded allowing the exchange of goods throughout the world, it is also the cause of the increase in tariff rates in many developing countries. Article BMJ, 311(7015), 12821285. First, it can be observed that previous studies are mostly based on traditional estimation methods. A simple panel unit root test in the presence of cross-section dependence. Social Media and Globalization: Positive and Negative Effects Essay Pesaran, M. H., Ullah, A., & Yamagata, T. (2008). Impact of Globalisation | Positive and Negative Effects of Finally, GDP per capita growth improves health status of countries. Today, development is no longer a process that can be realized through policies implemented by governments alone. National Geographic Headquarters 1145 17th Street NW Washington, DC 20036. Many countries have adapted to this process and have enjoyed the welfare effects of globalization by implementing necessary economic and institutional transformation. It may also increase domestic income inequality. According to regression results, per capita income, literacy rate, and lower fertility are important determinants of life expectancy while living in a tropical area decreasing it. Globalization, the positive and negative effects of Globalization. This poor performance is in part due to social and political instability and with conflicts between the rights of individuals verses the interest of cultural groups. In our study, while globalization is used as a proxy indicator of global cooperation, democracy is an indicator of cooperation between societies and governments. Labont, R., Schrecker, T., Packer, C., & Runnels, V. The null and alternative hypothesis for both test statistics is given below. While every effort has been made to follow citation style rules, there may be some discrepancies. This approach is simply based on adding cross-sectional averages to the models as proxies of unobserved common factors. In contrast, the pessimists show that globalization is quite uneven in its impact and gives rise to negative counter-effects on the previously protected sectors, the marginalisation of entire regions of the world economy and possible increases in within-country income inequality (WCII). Berger cited the antismoking movement as a case in point: the movement began as a singular North American preoccupation in the 1970s and subsequently spread to other parts of the world, traveling along the contours of academes global network. What is globalization? Positive and Negative Effects of - Marketing91 Besley, T., & Kudamatsu, M. (2006). Pesaran, M. H. (2007). As stated in the introduction section, low-income countries show low performance in terms of health-related sustainable development goals, and their connections with global markets are weak compared to other countries. The largest job creation and destruction effects come from environmental, technology and economic trends. Pesaran, M. H. (2006). The results of Pesaran (2004) \({CD}_{LM}\) and Pesaran et al. The results are shown in Table 4. Our work supports the idea that in order to achieve SDG3, global partnership and democracy are required. Social Science and Medicine, 136, 5263. Prevention of HIV-1 infection with early antiretroviral therapy. Increased Transport of Goods One of the primary results of globalization is that it opens businesses up to new markets in which they can sell goods and source labor, raw materials, and components. Health & place, 40, 6675. Income distribution and life expectancy: A critical appraisal. In general, globalization has been shown to increase the standard of living in developing countries, but some analysts warn that globalization can have a negative effect on local or emerging economies and individual workers.A Historical ViewGlobalization is not new. The null and alternative hypothesis for both test statistics; \({H}_{0}\): No cross-sectional dependence exist; \({H}_{1}\): Cross-sectional dependence exist. The consequences of this change can have positive and negative effects. Globalization and growth in the low income African countries with the extreme bounds analysis. While globalization has been used as an indicator of the partnership between countries, democracy has been used as an indicator of accountability and cooperation between governments and societies. Is globalization really good for public health? Marshall, M. G., & Jaggers, K. (2002). It employs as many as four million people, but the average worker earns less in a month than a U.S. worker earns in a day. They write new content and verify and edit content received from contributors. When you reach out to him or her, you will need the page title, URL, and the date you accessed the resource. Challenges to national sovereignty and identity, Anti-globalism movements and the Internet, Borrowing and translating popular culture, https://www.britannica.com/science/cultural-globalization, National Center for Biotechnology Information - PubMed Central - Cultural syndromes in the era of globalization, Social Science LibreTexts - Globalization. Traditional panel data methods are based on the assumption that no cross-sectional dependence exists among cross section units. These days we experience the coronavirus epidemic and we see once again the importance of globalization. where \({S}_{it}\) is partial sum process of the fully modified estimate of \({z}_{it}\) and \({\widehat{w}}_{i}^{-2}\) is the estimated long-run variance of \({u}_{it}\) conditional on \(\Delta {x}_{it}^{^{\prime}}\). Democracy can be considered as another determinant of life expectancy. Poverty is detrimental to access to health services. Sustainable Development, 27(4), 545572. Environ Dev Sustain 23, 1350813525 (2021). Cambridge: National Bureau of Economic Research. On a global view, although health-related problems are largely resolved, the situation is not as good for low-income countries. Critics also suggest that employment opportunities for children in poor countries may increase negative impacts of child labor and lure children of poor families away from school. Propensity to cooperate is measured in experiments involving local and global others. (2014). However, some countries still suffer from poor adaption to global markets. The dataset is consisting of a weighted average of collected data from several co-founders. One should also notice that wider markets and higher returns are important factors that motivate entrepreneurs. The effects of globalization on growth were mostly driven by free trade, international specialization, technology transfers, knowledge spillovers, and competitive markets. While cooperation between different countries requires globalization in the economic, social, and political fields, democracy is the way to ensure cooperation between governments and societies. The United Nations (2019). (2006). Cutler, D., Deaton, A., & Lleras-Muney, A. As a dummy variable, living in Sub-Saharan Africa is another factor that reduces life expectancy due to communicable diseases like HIV, malaria, etc. Omissions?
