This study investigates the relationship between globalization and income . The first is based on the Kearney/Foreign Policy magazine and the second is. Surprisingly, political and social globalization dominate the influence of the .. The relationships between the index of total globalization and overweight in. Magazines, Cultural Policy and Globalization: The Forced Retreat of the State? relationship between time and space, a relationship central to capitalist.
In addition to examining the importance of these different components of globalization, a further unique feature of our analysis consists of the integration of the various indicators of globalization into a world-wide dataset containing individual-level information up toindividuals. This allows us to a utilise information on the objectively measured overweight status of each individual and b to control for relevant individual-level covariates e.
To better isolate the effect of the various manifestations of globalization, it is important to control for a range of country-level factors that may simultaneously affect individual overweight risk and the country-level indicators of globalization, including the total GDP as a proxy of the size of the market, the Human Development Index, as well as the Index of Economic Freedom from the Heritage Foundation, which measures the quality of economic and legal institutions.
Through this analysis we aim to find out whether overall globalization indeed increases the individual likelihood of overweight, and whether the different dimensions of globalization — economic, political and social — play a greater or lesser part in raising the risk of overweight. Methods and their rationale 2. Definition and measurement of the component variables of globalization Globalization is our independent variable of primary interest.
We seek to capture both the influence of globalization as a whole as well as its relevant sub-components: Our primary measure of economic globalization is the relevant KOF sub-index, which is a composite measure comprising the following variables: We take advantage of the political KOF index mentioned above, which is a composite measure including information on the following four components: This component is designed to measure the degree of a country's international political engagement Dreher, Our main measure of this type of globalization is the social KOF globalization index, which is based on the following variables: Econometric specifications Starting with the most parsimonious model, we are primarily interested in how individual risk of overweight is affected by various manifestations of globalization: To account for potential spatial correlation of the error term, all our standard errors are clustered according to cluster IDs provided in the dataset.
Our data came from several sources. Outcome and individual control variables were obtained from the Demographic and Health Surveys DHS collected in a total of 56 countries over the period — variable definitions, as well as the full list of countries and survey years used is provided in the online Annex Supplementary material.
The DHS surveys have been extensively described elsewhere S. Finally, Economic Freedom Index from the Heritage Foundation was used as an additional control variable. The outcome variable of interest i. The BMI was calculated by dividing each person's weight in kilograms by height squared in meters.
In addition, observations for women whose height was recorded as either greater than or equal to 2. We restricted the sample for the analysis to non-pregnant women only, aged 15—49 years. Although the original sample contained women who were older than 49, for the vast majority of observations the anthropometric data was collected only in the 15—49 group. The actual sample size used in the regression analysis varied betweenandWe decided not to follow this approach, since increases in BMI associated with various independent variables may have very different implications, depending on the initial BMI value.
The Relationship between Globalization, Economic Growth and Income Inequality
For example, a change in BMI from 18 to 19 i. Measuring the association between covariates and BMI does not capture this difference, while measuring the effect of covariates on overweight treated as a dummy variable does.
Globalization-related indicators contained in vector X i ct were defined for one overall proxy of globalization as well as three sub-dimensions: For each index, and for each year, we split the values for each country into four quartiles to enable a more intuitive interpretation of the resulting parameters on the relationship between overweight and globalization, rather than using the un-transformed or log-transformed KOF-scores.
For example, a positive parameter on the second dummy assuming the first dummy serves as a reference would suggest an increase in the risk of overweight for people living in a country that is located in the second globalization quartile, relative to other 55 countries in any given year. Using quartiles also allows us to capture potential non-linearities in the relationship between globalization and overweight. As countries compete for more investment by becoming more open relative to others in a given year Asiedu,we have chosen a year-specific categorization for globalization categories.
Alternatively, we could have categorized countries based on their position relative to all other countries in all years combined, but that would answer a different question: The vector includes indicators for various levels of education, for different age groups, for living in a city, for occupational status, as well as for family size.
In section 5, the new index of globalization, based on different component system and its relationship with different economic growth variables, is introduced.
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Section 6 includes not only index values, but also the rankings of countries, the regional differences of globalization, and the development of globalization over time.
The impacts of globalization on income inequality estimated through regression analyses with various inequality variables are discussed in section 7. Finally, section 8 summarizes the results and concludes this study. The Literature on Globalization, Growth and Inequality Relationships The interest in and amount of research on the relationships between globalization, economic growth and income inequality has been increasing in recent years.
The growing interest is a result of the rapid development of international relations and the speed at which the recent wave of globalization is proceeding. The theoretical literature on each component is vast but the empirical evidence on the nature and causal relationship between the different interrelated factors of interest remains poor.
Thus, there is an urgent need for further research and methodological development at different levels and aspects to shed light on the issues. Recently, there have been a limited number of studies on different combinations of the links between key factors of interest such as inequality, poverty, growth, trade and globalization.
The Relationship between Globalization, Economic Growth and Income Inequality
Aghion and Williamson study the links between globalization, growth and inequality, while Collier and Dollar examine the relationships between globalization, growth and poverty. Mahler shows little evidence of a relationship between economic globalization and the disposable income or earnings of households in the case of developed countries.
Mayer mentioned that globalization gives benefits even to the poor countries for instance in the form of access to new technologies and opportunities, while countries show different technology, skill absorption and development abilities. Manasse and Turrini examined the impacts of globalization on inequality through trade integration, while Miller argues that globalization leads to a significant increase in income inequality.
Lindert and Williamson state that globalization has very different implications for inequality in a country. The authors classify the effects of globalization on inequality into five categories within and between countries.
Among the effects, one is that a greater degree of globalization has reduced inequality.
Links and Resources on Globalization
Talbot argues that a new international inequality has been derived through the old style of international inequality, which explains the increasing global inequality. The nineteenth century globalization was one of the most important reasons of increasing international inequality in the study of Bata and Bergesen a, b.
Ajayi concludes that integration combined with other factors, like the maintenance of macroeconomic stability, the development of human capital, high investment ratios, infrastructure and institutions, can enhance economic growth. Mussa examined issues related to the distribution of benefits from increasing globalization activity.
In general the focus on economic growth has changed from identification of factors generating growth and convergence to how growth is distributed in an economy. Heshmati c reviews the economic literature on the world distribution of income and income inequality. The exiting research supports increased awareness of the problem, its measurement and quantification, the identification of causal factors and policy measures that affect global income inequality.
Concerning the measurement of globalization, Heshmati a and b introduces two composite indices of globalization. They indicate the level of globalization and show how globalization has developed over time for different countries. The indices are composed of four components: A breakdown of the index provides possibilities for identifying the sources of globalization at the country level and associating it with their economic policy measures.
The empirical results show that a low rank in the globalization process is due to conflicts, economic and technology factors with limited possibility for the developing countries to affect.Globalization & Communication
The high ranked developed countries share similar patterns in distribution of various components. The indices were also used in a regression analysis framework to study the causal relationships between income inequality, poverty and globalization. The results show evidence of a weak and negative relationship between globalization and income inequality and poverty.
Regional location explains most of the variations in income inequality and poverty among the sample countries. Dreher ; see also Dreher et al. Thus, the result from limited data suggests positive association between openness and economic growth.
Summers acknowledges that globalization, in addition to positive effects, has adverse effects like increasing inequality.
In a recent collected volume sponsored by WIDER-UNU, consisting of studies in development economics and policy by Nissanke and Thorbeckethe impact of globalization on the world's poor by focusing on transmission mechanisms is presented. The volume is a serious attempt to better understand the major links and to document some of the main transmission mechanisms.
There are also other pieces of research that have explored those mechanisms. Among others Harrison compiled a work sponsored by the NBER on globalization and poverty; Hertel and Winters developed a model of world trade to explore the same issues; and Hoekman and Olarreaga inspected the same mechanisms at a micro level. These books complement each other extremely well and will help policymakers in their objectives for the achievement of the Millennium Development Goals and eradicating poverty.
The Data The database created by Kearney is the first unique one used for the computation of the globalization index. The data is a small panel data covering 62 countries observed during the period — but updated on an annual basis.
It was collected from various secondary data sources such as national sources, international organizations and financial institutions. In this study, we expanded the period to —, which is composed of 61 countries and has a total of observations. The four components are the same as those of the Kearney index.
Economic integration, personal contacts, technology, and political engagement are selected to represent globalization which affects the economic performance of countries and the living conditions of their citizens. In order to assess the effect of globalization on the economy of the countries and their citizens, several normalized economic and economic growth variables such as GDP, GDP growth, GDP per capita and growth in GDP per capita are included.
Table 1 shows summary statistics of the four components of globalization, GDP-based economic growth variables and the various globalization indices, including Kearney indices and principal component-based indices. We can see large variations in the index components and GDP values which affect the calculated indices. The mean values of GDP and GDP per capita are much higher than the median values with large standard deviations which show evidence of skewed distribution of GDP levels.