Empirical Investigation of the Impact of Globalization on Economic Growth: Any Difference between the de Jure and de Facto Measures of Globalization?
Empirical Investigation of the Impact of Globalization on Economic Growth: Any Difference between the de Jure and de Facto Measures of Globalization?

Author(s): Vladimir Šimić
Subject(s): Social Sciences, Economy
Published by: Udruženje ekonomista i menadžera Balkana
Keywords: Globalization; Growth; Ex-socialist Countries
Summary/Abstract: This paper empirically investigates how globalization impacted economic growth in a broad group of countries covered by the wiiw (the Vienna institute for international economic studies) database covering the period since the 1990s. Whilst theoretical arguments in favor of the positive effects of globalization are predominant, there also exist sound arguments pointing out that the effects might be negative too. Empirical evidence also provides a mixed picture. Given this ambiguity, it seems reasonable to further pursue the empirical effects of globalization on growth. The novelty in this paper is the application of different measures of globalization within the KOF index of globalization introduced by Dreher (2006) and later revisited by Gygli et al. (2019). In particular, this applies to distinguishing between the de jure and de facto measures of globalization and allows a comparison between the findings of these approaches. In its empirical investigation, this study uses the panel data analysis covering the ex-socialist European and Asian countries providing some interesting insights.

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