It affects our economies, education, culture, businesses, and personal lives. The Silk Road, an ancient network of trade routes used between Europe, North Africa, East Africa, Central Asia, South Asia, and the Far East, is an example of early globalization. Journal of economic perspectives, 20(3), 97120. 1 are heterogeneous. Since the start of civilization, people have traded goods with their neighbors. Socially, globalization has facilitated the exchange of ideas and cultures, contributing to a world view in which people are more open and tolerant of one another. Determinants of health outcomes in industrialized countries: A pooled, cross-country, time-series analysis. 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. Political and economic stability facilitate globalization as well. (2008) bias-adjusted LM test statistic. Geneva: World Health Organization. Our empirical work also supports the evidence of Bergh and Nilsson (2010) in terms of positive effect of economic globalization on life expectancy. (2004) and Besley and Kudamatsu (2006). 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. \({\stackrel{\sim }{Z}}_{it}\)=k and \(Var\left({\stackrel{\sim }{Z}}_{it}\right)=2k(T-k-1)/T+1\). After the deadline of MDGs, the United Nations has announced 17 SDGs, and Good Health and Well-Being takes its place as the third goal. In this context, the determination of the variables that will enable the achievement of the goal of a healthier society is especially important in explaining the economic differences between developing countries and developed countries. Gives Access to a Larger Market Through globalization countries and companies have access to a bigger consumer base. Due to extensive R&D investments and scientific activities, developed countries can find new treatment methods and supply advanced drugs. Department of Economics, Faculty of Economics and Administrative Sciences, Hatay Mustafa Kemal University, Hatay, Turkey, Arif Eser Guzel,Unal Arslan&Ali Acaravci, You can also search for this author in Among the macrotrends listed, businesses predict the strongest net job-creation effect to be driven by investments that facilitate the green transition of businesses, the broader application of ESG standards and supply chains becoming more localized, albeit with job growth offset by . https://doi.org/10.1007/s10668-021-01225-2, DOI: https://doi.org/10.1007/s10668-021-01225-2. Bai, J., & Kao, C. (2006). Globalisation is having a dramatic effect - for good or bad - on world economies and . Safaei (2006) also investigated the impact of democracy on life expectancy and adult and child mortality rates with the data of 32 autocratic, 13 incoherent, and 72 democratic countries. It requires cooperation between governments and societies. However, achieving all of these goals is only possible if the goals are consistent with each other. (1970). Dreher, A., & Gaston, N. (2008). American Economic Review, 96(2), 313318. Because of the pressure on the government about human rights, disadvantaged people are becoming able to meet their basic human needs. The only way to access that knowledge and these drugs are trade and integration between developed and underdeveloped countries. Positive and Negative Effects of Social Media in Globalization The massive number of ideas that people share through such platforms as Twitter and Facebook has noticeably influenced a change in lifestyles, preferences, political ideologies and academic achievements, both for the positive and negative. Policy makers should remove the barriers on globalization, and they should promote participation on international organizations and publicprivate and civil society partnerships. Those studies are mostly addressed the relationship between SDG7, SDG8, SDG13, and SDG17 (Zafar et al. The Review of International Organizations, 14, 543574. Google Scholar. This means that companies can offer goods at a lower price to consumers. In this sense, it can be said that the evidence we found for low-income countries is in line with the author's evidence. & Acaravci, A. In our study, while globalization is used as a proxy indicator of global cooperation, democracy is an indicator of cooperation between societies and governments. Get a Britannica Premium subscription and gain access to exclusive content. PDF Globalization Positive or Negative? 4-6 - Province of Manitoba Freedom House (2019). Culture, which consists of traits of specific groups of people such as language, religion, cuisine, and social habits, is significantly impacted. According to estimations of the continuous-updated fully modified (CUP-FM) and bias-adjusted ordinary least squares (BA-OLS), globalization and its subcomponents such as economic, social, and political globalization affect life expectancy positively. Accounting for contribution of trade openness and foreign direct investment in life expectancy: The long-run and short-run analysis in Pakistan. In the analysis of panel data, the estimators considering cross-sectional dependence are called the second-generation estimators. The results of homogeneity tests developed by Pesaran and Yamagata (2008) are given in Table 2. There are a few studies that came with the conclusion that globalization rises inequality (Dreher and Gaston 2008; Ha 2012), but Bergh and Nilsson (2010) suggested a different perspective. 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. Propelled by the efficiency or appeal of wireless communications, electronic commerce, popular culture, and international travel, globalization has been seen as a trend toward homogeneity that will eventually make human experience everywhere essentially the same. As Deaton (2004) mentioned before, access to cheap and easy travel can increase the rate of spread of communicable diseases. Indian-born anthropologist Arjun Appadurai has studied English-speaking professionals who trace their origins to South Asia but who live and work elsewhere. (2019). Our results confirms the findings of Owen and Wu (2007), Ali and Audi (2016), and Shahbaz et al. 2009: 10). Politicians who have never tasted poverty do not have the urge to take action against the problems of the poor at the right time. Franco et al. For this purpose, the role of globalization and democracy in life expectancy is empirically investigated in 16 low-income countries over the period 19702017. According to results, democracy has a positive and significant effect on life expectancy at birth and it also reduces child mortality. According to the United Nations (2019), the main indicators of global partnerships are trade, foreign direct investments, remittances, financial integration technology transfers, data monitoring and accountability, internet usage, and political integration among countries. Therefore, partnerships for goals has taken its place as the 17th sustainable development target. While the increases in this indicator represent a more democratic regime, the decreases represent a more autocratic regime. To answer this question, the role of economic, social, and political globalization and democracy in life expectancy in those countries is empirically investigated. Globalization has improved the quality of life for people in several countries by enabling access to better and more affordable technologies, products and services. 5. The test statistic obtained from Swamys model is improved by Pesaran et al. Diabetes Care, 34(6), 12491257. (2009). By minimizing the BIC, we obtain \(\widehat{k}\). Impact of globalization in south africa. The Impact of Globalization Thus, the attention of politicians can be attracted to the problems of the poor. Dreher, A. It is an important instrument in the suppression of the inequality created by economic globalization. 2023 Springer Nature Switzerland AG. The main question of our study is to determine whether the problem of low life expectancy in low-income countries is due to the low levels of globalization and weak political institutions in these countries. Economic Modelling, 37, 386394. Westerlund, J. Globalization pros and cons: economic, cultural, political Provides Cheaper Goods for Consumers Therefore, the positive impact of globalization on health first emerged with its positive effects on economic growth (Labont et al. In the selection of panel data estimation methods, the results of those preliminary analysis are taken into account. CAFE Research Paper, (13.15). https://databank.worldbank.org/source/world-development-indicators (Access Date: December, 2019). 2019a). Second, although rapidly increasing consumption options and diversity are known as welfare indicators, they also can cause stress which is known as an important determinant of many diseases both psychological and physical (Cutler et al. National Geographic Headquarters 1145 17th Street NW Washington, DC 20036. This is because globalization has led to reduced costs of goods and increased trade. Westerlund and Edgerton (2007) suggested following LM test in order to test the null of cointegration. In addition, democracy is an important tool in achieving the goal of a healthy society, as it fosters accountability, transparency, and partnership between governments and the societies they rule. Countries are aware of infectious diseases in different parts of the world in a very short time and can take measures to stop the spread of the virus. Welander et al. In our empirical work, economic, social, and political globalization and democracy variables were used as proxies of the subcomponents of SDG17. The findings obtained from our study show that economic, social, and political integration of countries and democracy accelerate the process of achieving a healthier society. Patterson, A. C., & Veenstra, G. (2016). First, increased urban population and sedentary lifestyles may enhance prepared food consumption and reduce daily movements which result in rising obesity and diabetes (Hu 2011). Zafar, M. W., Saud, S., & Hou, F. (2019a). Evidence from a new index of globalization. Globalization is defined for individuals as their connectivity in global networks. 2. Safaei, J. This makes governments more accountable in the global area and forcing them to pay attention to protect human rights. Globalization and poverty (No. The results show that the null of cointegration is accepted for all models. The determinants of mortality. Another example is Vietnam, where globalization has contributed to an increase in the prices for rice, lifting many poor rice farmers out of poverty. This index has been used in previous literature as a proxy of SDG17 (Saint Akadiri et al. Estimation and inference in large heterogeneous panels with a multifactor error structure. The null and alternative hypothesis for both test statistics is given below. The 17 Sustainable Development Goals announced by the United Nations are important guides for the development processes of developing countries. While the authors found no significant impact of social and political globalization on life expectancy, our results show that life expectancy is positively associated with both social and political globalization. While globalization and democracy indexes are used as proxy indicators of Partnerships for the Goals (SDG 17), life expectancy used a proxy of Good Health and Well-Being (SDG 3). With this, it is aimed to examine the existence of contradiction between those SDGs. Text on this page is printable and can be used according to our Terms of Service. (2008) bias-adjusted LM tests are given in Table 1. It may also increase domestic income inequality. The world leaders with the support of international funding organizations announced the Millennium Declaration in September 2000 at the United Nations Headquarters in New York. Globalization can benefit a country's economy in many ways: Increases economic growth. World Bank Income Groups MDGs Index Values in 2015. In the estimation of long-run coefficients, the CUP-FM estimator was used and this method is based on the following regression, where \({\widehat{\lambda }}_{i}^{^{\prime}}\) refers to the estimated factor loadings and \(\hat{y}_{{i,t}}^{ + } = y_{{i,t}} - \left( {\lambda _{i} ^{\prime } \hat{\Omega }_{{F \in i}} + \hat{\Omega }_{{\mu \in i}} } \right)\hat{\Omega }_{{ \in i}}^{{ - 1}} {{\Delta }}x_{{i,t}}\) indicates the transformation of the dependent variable for endogeneity correction. cultural globalization, phenomenon by which the experience of everyday life, as influenced by the diffusion of commodities and ideas, reflects a standardization of cultural expressions around the world. Besides being one of the indicators of development, it is one of the determinants of human capital formation which is necessary for economic development. These SDGs are Good Health and Well-Being (SDG3) and Partnerships for the Goals (SDG17). Econometric analysis of panel data. (2015). What is globalization? Positive and Negative Effects of - Marketing91 Increasing Cultural Diversity. Westerlund (2007) showed that the estimation of k provides better results compared to CUP-FM estimator assuming k is known. POSITIVE IMPACTS OF GLOBALIZATION 1. Although different cultures from around the world are able to interact, they begin to meld, and the contours and individuality of each begin to fade. CAS The previous literature provides a lack of evidence in the context of globalization, democracy, and life expectancy relationship. The audio, illustrations, photos, and videos are credited beneath the media asset, except for promotional images, which generally link to another page that contains the media credit. For more than 1,500 years, Europeans traded glass and manufactured goods for Chinese silk and spices, contributing to a global economy in which both Europe and Asia became accustomed to goods from far away. Following the related literature, we present our model as follows: where lex is life expectancy at birth which refers to the average number of years a newborn is expected to live. But today there are improved treatment methods to solve these problems. 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. Cross-sectional dependency simply refers to the situation when the shock that occurs in one country affects other countries as well. Another example of this kind of diversity of On the other hand, the number of physicians has a positive and significant impact on life expectancy, while malnutrition reduces it. The resulting spread of slavery demonstrates that globalization can hurt people just as easily as it can connect people.The rate of globalization has increased in recent years, a result of rapid advancements in communication and transportation. It has been observed in the literature that possible contradictions between these goals are ignored. There are approaches known as the unequal exchange that globalization increases inequality among countries and that developed countries are more profitable from the globalization process (Love, 1980). This approach is simply based on adding cross-sectional averages to the models as proxies of unobserved common factors. alleviation). (2016) concluded that foreign direct investment and trade openness which are important indicators of economic globalization affects life expectancy positively. https://kof.ethz.ch/en/forecasts-and-indicators/indicators/kof-globalisation-index.html (Access Date: December, 2019). Fixed effects estimation results reveal a significant negative relationship between public health expenditure and women's premature death. Health and democracy. Is globalization really good for public health? The main problem of economics is to increase economic development and social welfare. Therefore, in order to make a methodological contribution to previous literature, we used second-generation panel time series methods considering cross-sectional dependence. 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. Globalization and disease: In an unequal world, unequal health! Positive and negative consequences of globalisation This method considers the cross-sectional dependence and can be used, while N>T and T>N. The CADF regression is: \({\stackrel{-}{y}}_{t}\) is the average of all N observations. Omissions? If no button appears, you cannot download or save the media. Both of the estimators require cointegrated variables in the long run. If you have questions about licensing content on this page, please contact ngimagecollection@natgeo.com for more information and to obtain a license. Migration is also another fact to take into account. As cultures advanced, they were able to travel farther afield to trade their own goods for desirable products found elsewhere. Knowledge sharing and technology transfer between nations have become easier. Environment, Development and Sustainability, $${lex}_{it}={\beta }_{1i}+{\beta }_{2}{X}_{it}+{\beta }_{5}{dem}_{it}+{\beta }_{6}{gdp}_{it}+{\varepsilon }_{it}$$, $${\text{CD}}_{{{\text{LM}}}} = \left( {\frac{1}{{N\left( {N - 1} \right)}}} \right)^{{\frac{1}{2}}} \sum\limits_{{i = 1}}^{{N - 1}} {\sum\limits_{{j = i + 1}}^{N} {(T\hat{\rho }_{{ij}} ^{2} - 1)} }$$, $${LM}_{adj}=\sqrt{\frac{2}{N(N-1)}}\sum_{i=1}^{N-1}\sum_{j=i+1}^{N}\frac{\left(T-k\right){\widehat{\rho }}_{ij}^{2}-{\mu }_{Tij}}{{V}_{Tij}}$$, $$\widehat{S}=\sum_{i=1}^{N}\left({\stackrel{\sim }{\beta }}_{i}-{\overbrace{\beta}}_{WFE}\right)\frac{{x}_{i}^{^{\prime}}{M}_{T}{x}_{i}}{\stackrel{\sim }{{\sigma }_{i}^{2}}}\left({\stackrel{\sim }{\beta }}_{i}-{\overbrace{\beta }}_{WFE}\right)$$, $$\stackrel{\sim }{\Delta }=\sqrt{N}\left(\frac{{N}^{-1}\stackrel{\sim }{S}-k}{\sqrt{2k}}\right)$$, $${\stackrel{\sim }{\Delta }}_{adj}=\sqrt{N}\left(\frac{{N}^{-1}\stackrel{\sim }{S}-E({\stackrel{\sim }{Z}}_{it})}{\sqrt{Var({\stackrel{\sim }{Z}}_{it})}}\right)$$, \(Var\left({\stackrel{\sim }{Z}}_{it}\right)=2k(T-k-1)/T+1\), $${\Delta y}_{it}={\alpha }_{i}+{\rho }_{i}^{*}{y}_{i,t-1}+{d}_{0}{\stackrel{-}{y}}_{t-1}+{d}_{1}\Delta {\stackrel{-}{y}}_{t}+{\epsilon }_{it}$$, $${\Delta y}_{it}={\alpha }_{i}+{\rho }_{i}^{*}{y}_{i,t-1}+{d}_{0}{\stackrel{-}{y}}_{t-1}+\sum_{j=0}^{p}{d}_{j+1}\Delta {\stackrel{-}{y}}_{t-j}+\sum_{k=1}^{p}{c}_{k}\Delta {y}_{i,t-k}+{\epsilon }_{it}$$, $$CIPS=\frac{1}{N}\sum_{i=1}^{N}{CADF}_{i}$$, $${y}_{it}={\alpha }_{i}+{x}_{it}^{^{\prime}}{\beta }_{i}+{z}_{it}$$, $${z}_{it}={u}_{it}+{v}_{it} ,{v}_{it}= \sum_{j=1}^{t}{n}_{ij}$$, $${LM}_{N}^{+}=\frac{1}{N{T}^{2}}\sum_{i=1}^{N}\sum_{t=1}^{T}{\widehat{w}}_{i}^{-2}{S}_{it}^{2}$$, $${\widehat{\beta }}_{CUP}=\left[\sum_{i=1}^{N}\left(\sum_{i=1}^{T}{\widehat{y}}_{i,t}^{+}\left({\widehat{\beta }}_{CUP}\right){\left({x}_{i,t}-{\stackrel{\sim }{x}}_{i}\right)}^{^{\prime}}-T\left({\widehat{\lambda }}_{i}^{^{\prime}}\left({\widehat{\beta }}_{CUP}\right){\widehat{\Delta }}_{F\epsilon i}^{+}\left({\widehat{\beta }}_{CUP}\right)+{\widehat{\Delta }}_{\mu \epsilon i}^{+}\left({\widehat{\beta }}_{CUP}\right)\right)\right)\right]{\left[\sum_{i=1}^{n}\sum_{i=1}^{T}\left({x}_{i,t}-{\stackrel{\sim }{x}}_{i}\right){\left({x}_{i,t}-{\stackrel{\sim }{x}}_{i}\right)}^{^{\prime}}\right]}^{-1}$$, \(\hat{y}_{{i,t}}^{ + } = y_{{i,t}} - \left( {\lambda _{i} ^{\prime } \hat{\Omega }_{{F \in i}} + \hat{\Omega }_{{\mu \in i}} } \right)\hat{\Omega }_{{ \in i}}^{{ - 1}} {{\Delta }}x_{{i,t}}\), $$\widehat{k}=\mathrm{min}\left(IC\left(k\right)\right), 1Effects of Globalization - The Balance However, in 19 of 99 countries, globalization increases public health performance. Or, Z. Our work supports the idea that in order to achieve SDG3, global partnership and democracy are required. Ali and Audi (2016) also analyzed the role of globalization in life expectancy in Pakistan. New New technologies which emerge in some developed country are available to other poor and underdeveloped Gelleny and McCoy (2001) also claimed that integration among countries leads to political stability. In 2013, a textile factory building collapsed, killing more than 1,100 workers. Any interactives on this page can only be played while you are visiting our website. Slider with three articles shown per slide. 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. Individuals living in countries with high per capita income are expected to have higher welfare and have a longer life expectancy (Judge, 1995). The hope is that increased global trade will lead to more competition, which will spread wealth more equally. Therefore, it is seen that SDG3 and SDG17 targets are compatible with each other. Therefore, in order to determine the existence of a long-run relationship, we applied Westerlund and Edgerton (2007) panel cointegration test. The garment industry in Bangladesh, for instance, employs an estimated four million people, but the average worker earns less in a month than a U.S. worker earns in a day. Their analysis includes annual data from 168 countries covering the period 19602010. As the literature is divided into two parts about the effects of globalization on human well-being, fresh evidence via robust estimation methods is required in order to provide proper policy implications. By sharpening such identities, these NGOs have globalized the movement to preserve indigenous world cultures. 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. But no significant relationship was found between social globalization, political globalization, and life expectancy. Barlow and Vissandjee (1999) examined the determinants of life expectancy with cross-sectional data available in 1990 for 77 developed and developing countries. The journal of Politics, 74(2), 541557. Positive and Negative Impacts of Globalization Empirical results show democracy has a significant positive impact on life expectancy and it reduces infant mortality. What is Globalization? Positive & Negative Impacts of Globalization . Beck, T., Maimbo, S. M., Faye, I., & Triki, T. (2011). First, it can be observed that previous studies are mostly based on traditional estimation methods. Health is one of the most important indicators of social welfare. Sustainable Development, 27(4), 545572. In Eq. Part of. The positive impact of globalization can be seen while connecting production technology. When these countries are examined, it is seen that 14 of them are countries in the low and lower-middle income groups. Positive and Negative Effects of Globalization | Edusson Blog 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. A bias-adjusted LM test of error cross-section independence. Therefore, governments' tendency to violate human rights in order to maintain their power becomes lesser. 1996 - 2023 National Geographic Society. In democracies, governments have an obligation to account to citizens for what purposes the resources were used. Cambridge: National Bureau of Economic Research. The null and alternative hypothesis for both test statistics; \({H}_{0}\): No cross-sectional dependence exist; \({H}_{1}\): Cross-sectional dependence exist. 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. This allows business organizations in developed countries to invest in developing countries. Another study on the Pakistan case proposed by Alam et al. In their study, they used life expectancy at birth and child mortality variables for 146 countries as indicators of health outcomes. Editor of. 71112. In the selection of stationarity tests and long-run estimators, the existence of cross-sectional dependence will be decisive. However, we should consider other possibilities in the context of spreading communicable diseases. 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. If you have questions about how to cite anything on our website in your project or classroom presentation, please contact your teacher. Globalization, the positive and negative effects of Globalization. An economist explains the pros and cons of globalization These results are contradictory to positive views on the role of globalization in public health. Propelled by the efficiency or appeal of wireless communications, electronic commerce, popular culture, and international travel, globalization has been seen as a trend toward homogeneity that . The Triangular Trade network in which ships carried manufactured goods from Europe to Africa, enslaved Africans to the Americas, and raw materials back to Europe is another example of globalization. What Are the Effects of Globalization on the Environment? The role of political globalization on this point is forcing governments to adopt global institutions. Indeed, the working conditions of people at some points in the supply chain are deplorable. Health outcome measures of this study are infant mortality and life expectancy.
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