Globalization-Poverty Nexuses: Evidences from Cross-Country Analysis
Journal Title: Empirical Economic Review - Year 2018, Vol 1, Issue 1
Abstract
The current study examines the impact of globalization on poverty across 119 countries by utilizing poverty headcount index based on 1.90$ international poverty line and KOF globalization index developed by Dreher, Gaston, and Martens (2008). The main objectives of the research are to examine the general impact of globalization on poverty and region-specific impact of globalization on poverty. The cross-section analysis based on OLS method suggests that globalization significantly reduces the level of poverty of selected countries. Apart from that, the study found that secondary education enrolment ratio, percentage of urban population and percentage of population who has access to electricity also reduce the poverty. However, impact of globalization on poverty is not equal across all the regions. The region-based analysis confirms that globalization reduces poverty in all considered regions except Sub-Saharan Africa. More specifically, contribution of globalization on poverty reduction is more substantial in South Asia region followed by East Asia and Pacific and Europe and Central Asia regions. Consequently, the study strongly recommends countries to engage with the process of globalization and however the degree of opening up trade policies, capital accounts and labor markets should be decided based on their own domestic macroeconomic conditions and future economic goals.
Authors and Affiliations
Ravindra Deyshappria
Keywords
Related Articles
- EP ID EP402562
- DOI 10.29145/eer/11/010102
- Views 96
- Downloads 0
Financial Cointegration of Emerging Economies: Evidence from Bivariate Cointegration and Granger Causality
The study at hand examined financial cointegration of emerging economies and explored the diversification opportunities which are available for investors of developed countries. For the long run and causal relationship,...
Analyzing the Competitiveness of Zimbabwean Economy against its Neighbouring Countries
The purpose of this research is to analyze the impact on economic performance of competitiveness of Zimbabwean economy vis-à-vis its neighbouring countries, namely Botswana, Mozambique, South Africa and Zambia between 20...
Pakistan’s Electricity Demand Analysis 1975-2016
The problem of energy is one that has plagued the economic growth of Pakistan for decades; the resulting domestic pressure has often led to the misallocation of resources, and therefore should be studied extensively for...
Globalization-Poverty Nexuses: Evidences from Cross-Country Analysis
The current study examines the impact of globalization on poverty across 119 countries by utilizing poverty headcount index based on 1.90$ international poverty line and KOF globalization index developed by Dreher, Gasto...
Economic Value Added or Earnings per Share? An Incremental Content Analysis
The primary objective of the study is to determine the relative and incremental information content of Economic Value Added (EVA) as compared to the traditional accounting measure of Earnings per Share (EPS). The study e...