Indeed, the working conditions of people at some points in the supply chain are deplorable. (2015). Welander, A., Lyttkens, C. H., & Nilsson, T. (2015). However, it was emphasized that some sub-goals should be realized in order to reach this goal. 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. When these countries are examined, it is seen that 14 of them are countries in the low and lower-middle income groups. Businesses in several different countries may be involved in producing even seemingly simple products such as cotton T-shirts.Globalization affects services too. Particularly in empirical work in the context of globalization which refers to economic, political, and cultural integration among countries, considering the cross-sectional dependence becomes more important. Today, development is no longer a process that can be realized through policies implemented by governments alone. Updates? Journal of applied econometrics, 22(2), 265312. The 17 Sustainable Development Goals announced by the United Nations are important guides for the development processes of developing countries. Guivis Zeufack Nkemgha, Honor Oumb Tkam & Alim Belek, Muhamadu Awal Kindzeka Wirajing, Tii N. Nchofoung & Roger Tsafack Nanfosso, Yogi Sugiawan, Robi Kurniawan & Shunsuke Managi, Pilar Gracia-de-Rentera, Hugo Ferrer-Prez, George Philippidis, Environment, Development and Sustainability Please select which sections you would like to print: Fairbank Professor of Chinese Society and Professor of Anthropology, Harvard University. The low-income countries also suffer from low institutional quality in the context of democracy and political rights. It also offers broader opportunities for entrepreneurs and paves the way for innovation (Grossman and Helpman 2015: 101). Pesaran, M. H., Ullah, A., & Yamagata, T. (2008). Therefore, partnerships for goals has taken its place as the 17th sustainable development target. Sen (1999) claimed that the instrumental role of democracy in solving problems is enabling people to express and support their claims. Get a Britannica Premium subscription and gain access to exclusive content. New New technologies which emerge in some developed country are available to other poor and underdeveloped Empirical results show democracy has a significant positive impact on life expectancy and it reduces infant mortality. (Eds.). Culture, which consists of traits of specific groups of people such as language, religion, cuisine, and social habits, is significantly impacted. Globalization and government policy independence: The issue of taxation. 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. 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. The Review of International Organizations, 14, 543574. If you have questions about how to cite anything on our website in your project or classroom presentation, please contact your teacher. The relationship also occurs for men, while GDP per capita dropped from the regression model due to high collinearity. Propensity to cooperate is measured in experiments involving local and global others. Review of International Economics, 15(4), 660682. Gelleny, R. D., & McCoy, M. (2001). In this study, the effects of globalization and democracy on life expectancy are empirically investigated in low-income countries. On the estimation and inference of a panel cointegration model with cross-sectional dependence In panel data econometrics theoretical contributions and empirical applications. 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). Bergh, A., & Nilsson, T. (2010). Because of its importance, health-related goals have an important place both among the Millennium Development Goals (MDGs) and the Sustainable Development Goals (SDGs) announced by the United Nations. As you stop to fill up your car (paying approximately $2.50 to $3.50 per gallon of gas in the U.S.) and then . Low-income countries are mostly African countries where there is a rising trend in terms of integration to global markets and institutions (Beck et al. This means that unskilled workers may be affected by declining wages, which are under constant pressure from globalization.Into the FutureRegardless of the downsides, globalization is here to stay. 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. Due to the high cost of advanced drugs as in the case of antiretroviral therapy, it should be accepted that people in low-income countries will have trouble accessing the drugs (Buss 2002). Zafar, M. W., Shahbaz, M., Hou, F., & Sinha, A. According to the OLS estimation results, improving democratic institutions increases life expectancy and reduces child and adult mortality rates. Free trade opportunities between countries help avoid business complications. Competition Competition in the market is largely due to globalization. Bingley: Emerald Group Publishing Limited. In their recent study, Shahbaz 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. Globalization is affecting every facet of our lives, positively and negatively. Governments that know the international sanctions required by these violations have to be more cautious against human rights violations. International trade, capital flows, migration, technological transfer and cultural exchanges are some of the typical manifestations of this process. - 43.231.112.109. In their study, they used life expectancy at birth and child mortality variables for 146 countries as indicators of health outcomes. 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. At the same time, innovations in information technology enable immediate communication and the rapid transfer of financial assets across national borders. Following this study, Tausch (2015) analyzed the role of globalization in life expectancy in 99 countries. In addition, ignoring the cross-sectional dependence results in inconsistent estimations. 2009: 10). In this study, the cointegration relationship was investigated by Westerlund and Edgerton (2007) LM bootstrap test. BMJ, 311(7015), 12821285. 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. In order to achieve SDG3, economic, social, and political integration between countries should be encouraged and democratic institutions should be improved. Maryland: University of Maryland. Second, the panel data analyses are based on the first-generation estimators that assume cross-sectional independence. According to results, per capita income, literacy rate, per capita health expenditure, and urbanization have no significant impact on life expectancy. 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. (1970). However, according to Kabir (2008), people living in an urban area can benefit from improved medical care, easy access to pharmacy, and to the hospitals that use higher technology. The globalization of cultural subgroups is not limited to the upper classes. According to Trading Economics (2016) the unemployment rate in Spain is close to 25% in recent years, which would increase the pressure to the local labor market. Encyclopaedia Britannica's editors oversee subject areas in which they have extensive knowledge, whether from years of experience gained by working on that content or via study for an advanced degree. 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. Ulucak, R., & Bilgili, F. (2018). Third, due to knowledge spillovers and communication technology, people can learn about healthy nutrition and protection from communicable diseases. Positive Impacts of Globalization Adopting globalization increases free trading opportunities between countries. 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. Cambridge: National Bureau of Economic Research. As cultures advanced, they were able to travel farther afield to trade their own goods for desirable products found elsewhere. 2. 2020). Or, Z. This method is based on the following equation, where \({n}_{ij}\) is an independent and identically distributed process with zero mean and var(\({n}_{ij})\)=\({{\sigma }_{i}}^{2}\). To improve the health conditions of a country, the welfare of the poor should be improved as well. This method considers cross-sectional dependence and provides robust results in small samples (Westerlund and Edgerton, 2007). Article 4. Indian-born anthropologist Arjun Appadurai has studied English-speaking professionals who trace their origins to South Asia but who live and work elsewhere. Another example of this kind of diversity of Bioethics, 23(2), 97111. According to the results, globalization significantly reduces child mortality. The advantages of globalization are actually much like the advantages of technological improvement. Firstly, we . 2014). Pesaran MH (2004) General diagnostic tests for cross section dependence in panels. 1, X refers to the KOF Globalization Index developed by Dreher (2006). Cross-sectional dependency simply refers to the situation when the shock that occurs in one country affects other countries as well. New York: Knopf. While the increases in this indicator represent a more democratic regime, the decreases represent a more autocratic regime. Increasing the social welfare level is a complex process that depends on economic and non-economic factors. This is because globalization has led to reduced costs of goods and increased trade. Econometrica: Journal of the Econometric Society, 38, 311323. While every effort has been made to follow citation style rules, there may be some discrepancies. (2019). (1999). Although homogenizing influences do indeed exist, they are far from creating anything akin to a single world culture. 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. The case study of Port Elizabeth is used to chart some of these changes. The effects of globalization on growth were mostly driven by free trade, international specialization, technology transfers, knowledge spillovers, and competitive markets. 1996 - 2023 National Geographic Society. Labont, R., Schrecker, T., Packer, C., & Runnels, V. The average cost of goods is a key aspect that contributes to increases in the standard of living. 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. In the selection of stationarity tests and long-run estimators, the existence of cross-sectional dependence will be decisive. Econometrica, 74(4), 9671012. 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.
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