World Development, 38(9), 11911203. \({\stackrel{\sim }{Z}}_{it}\)=k and \(Var\left({\stackrel{\sim }{Z}}_{it}\right)=2k(T-k-1)/T+1\). Cambridge: National Bureau of Economic Research. In the estimation of the long-run relationship between the variables, second-generation panel data analysis methods that consider cross-sectional dependency are used. Both of the estimators require cointegrated variables in the long run. Impact of Globalisation | Positive and Negative Effects of PubMedGoogle Scholar. Welander et al. Some observers argue that a rudimentary version of world culture is taking shape among certain individuals who share similar values, aspirations, or lifestyles. According to results, per capita income, literacy rate, per capita health expenditure, and urbanization have no significant impact on life expectancy. (2016). Bergh, A., & Nilsson, T. (2010). Canadian Journal of Development Studies/Revue canadienne dtudes du dveloppement, 20(1), 929. In addition, the life expectancy at birth variable that mostly used in related literature as a proxy of health status and well-being, it is used in our study as a proxy of SDG3. In our study, while globalization is used as a proxy indicator of global cooperation, democracy is an indicator of cooperation between societies and governments. Keywords: Cultural globalization, Economic globalization, Political globalization INTRODUCTION Social identity mediates the positive effect of globalization on - PLOS Health and democracy. In the analysis of panel data, the estimators considering cross-sectional dependence are called the second-generation estimators. Globalization describes how different world cultures, populations, and economies are interdependent from each other. volume23,pages 1350813525 (2021)Cite this article. In general, critics blame the pressures of globalization for encouraging an environment that exploits workers in countries that do not offer sufficient protections.Studies also suggest that globalization may contribute to income disparity and inequality between the more educated and less educated members of a society. If the null of no cross-sectional dependence is rejected, second-generation methods that assume cross-sectional dependence should be used in order to provide unbiased and consistent estimation results. Google Scholar. After the preliminary analysis of unit root, the existence of a long-run relationship between the variables in our model will be investigated via Westerlund and Edgerton (2007) cointegration test. & Acaravci, A. It is an important instrument in the suppression of the inequality created by economic globalization. Cutler, D., Deaton, A., & Lleras-Muney, A. A., Olasehinde-Williams, G., & Etokakpan, M. U. The garment industry in Bangladesh makes clothes that are then shipped out across the world. Dreher, A. Pesaran, M. H., & Yamagata, T. (2008). Zafar, M. W., Shahbaz, M., Hou, F., & Sinha, A. We measure individual involvement with global networks and local, national, and global social identity through a questionnaire. It requires cooperation between governments and societies. Anyone you share the following link with will be able to read this content: Sorry, a shareable link is not currently available for this article. (2004). However, rising global human rights became an important step to advance public health issues against economic concerns in the trade of pharmaceutical products. Although homogenizing influences do indeed exist, they are far from creating anything akin to a single world culture. Journal of cleaner production, 212, 11661178. They can also get a better education and can enjoy better socioeconomic conditions. Politicians who have never tasted poverty do not have the urge to take action against the problems of the poor at the right time. Marshall, M. G., & Jaggers, K. (2002). If the calculated CIPS statistic exceeds the critical value, it means that the unit root hypothesis is rejected. One should also notice that wider markets and higher returns are important factors that motivate entrepreneurs. Impact of globalization in south africa. The Impact of Globalization Therefore, economic development and improvement of health conditions represent a two-way process. 4. The role of electricity consumption, globalization and economic growth in carbon dioxide emissions and its implications for environmental sustainability targets. In this study, we investigated the role of globalization and democracy in life expectancy in 16 low-income countries.Footnote 1 Following Barlow and Vissandjee (1999) and (2000), GDP per capita is used as a control variable in order to mitigate omitted variable bias. 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. Beck, T., Maimbo, S. M., Faye, I., & Triki, T. (2011). Those studies are mostly addressed the relationship between SDG7, SDG8, SDG13, and SDG17 (Zafar et al. Provided by the Springer Nature SharedIt content-sharing initiative, Over 10 million scientific documents at your fingertips, Not logged in This method is based on the following equation, where \({n}_{ij}\) is an independent and identically distributed process with zero mean and var(\({n}_{ij})\)=\({{\sigma }_{i}}^{2}\). They are said to follow a recognizable lifestyle, are instantly identifiable anywhere in the world, and feel more comfortable in each others presence than they do among their less-sophisticated compatriots. Positive and Negative Effects of Globalization | Edusson Blog Shahbaz, M., Shafiullah, M., & Mahalik, M. K. (2019). Globalization and disease: In an unequal world, unequal health! Globalization in the Modern World - ThoughtCo Those who are in favor also claim that trade across borders will help limit military . 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 A bias-adjusted LM test of error cross-section independence. Globalization pros and cons: economic, cultural, political As pointed out by Swedish anthropologist Ulf Hannerz, this group advocates a view of global culture based not on the replication of uniformity but on the organization of diversity. Often promoting this view are nongovernmental organizations (NGOs) that lead efforts to preserve cultural traditions in the developing world. Pesaran MH (2004) General diagnostic tests for cross section dependence in panels. In democracies, governments have an obligation to account to citizens for what purposes the resources were used. Globalization has enabled the exchange and spread of cultural diversity around the world, such as food, music and art. Journal of Conflict Resolution, 56(3), 516546. Income distribution and life expectancy: A critical appraisal. However, this assumption is hard to satisfy due to rising economic, social, and political integration between countries. As expected, poverty rates significantly reduced in the last two decades because of the integration of developing economies to global markets (Harrison 2006). The consequences of this change can have positive and negative effects. Therefore, the positive impact of globalization on health first emerged with its positive effects on economic growth (Labont et al. Is democracy good for health? Applied economics, 38(10), 10911110. Has globalization increased inequality? Alam, M. S., Raza, S. A., Shahbaz, M., & Abbas, Q. Africa: The World Bank. These techniques are robust whether N>T and T>N. Therefore, \({CD}_{LM}\) and bias-adjusted LM (\({LM}_{adj})\) tests are found to be appropriate and their test statistics can be calculated as follows: Equation 2 shows the calculation of Pesaran (2004) \({CD}_{LM},\) and Eq. There are also methodological weaknesses in previous empirical studies. Globalization has led to increases in standards of living around the world, but not all of its effects are positive for everyone. Particularly rising sexual tourism and migrant sex workers increase the spread of sexually transmitted diseases such as HIV/AIDS. It employs as many as four million people, but the average worker earns less in a month than a U.S. worker earns in a day. Migration is also another fact to take into account. Globalization, government ideology, and income inequality in developing countries. Patterson, A. C., & Veenstra, G. (2016). Chudik A, & Pesaran, MH (2013) Large panel data models with cross-sectional dependence: a survey. 1229). Westerlund (2007) showed that the estimation of k provides better results compared to CUP-FM estimator assuming k is known. One may think about unhealthy conditions of an urban area such as environmental degradation, air and water pollution, higher crime rates, and stress which reduce life expectancy. The dynamics of financial development, globalisation, economic growth and life expectancy in sub-Saharan Africa. 4. From nonrenewable to renewable energy and its impact on economic growth: The role of research & development expenditures in Asia-Pacific Economic Cooperation countries. 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). This makes governments more accountable in the global area and forcing them to pay attention to protect human rights. It has been observed in the literature that possible contradictions between these goals are ignored. CAS 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. Latin American Research Review, 15(3), 4572. (Eds.). (2020). Positive effects of Globalisation. It may also increase domestic income inequality. Therefore, governments' tendency to violate human rights in order to maintain their power becomes lesser. Globalization, economic freedom, and human rights. (2019b). 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 main problem of economics is to increase economic development and social welfare. 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. In this study, we determined the number of common factors via the Bayesian information criterion (BIC) as follows. Positive and negative consequences of globalisation Some would argue that globalisation has spread wealth and led to the improvement of standards of living in newly-industrialised countries. Rao, B. New England journal of medicine, 365(6), 493505. In their study, they used life expectancy at birth and child mortality variables for 146 countries as indicators of health outcomes. Slider with three articles shown per slide. Besides being one of the indicators of development, it is one of the determinants of human capital formation which is necessary for economic development. The results we found contradict Tausch (2015)s evidences in 80 of 99 countries. 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. In this study, the cointegration relationship was investigated by Westerlund and Edgerton (2007) LM bootstrap test. Models 1, 2, 3, and 4 represent the estimations with overall, economic, social, and political globalization indexes, respectively. Article (1970). (2004) analyzed the impact of democracy on health utilizing political rights data of 170 countries. They have very similar effects: they raise output in countries, raise productivity, create more jobs, raise wages, and lower prices of products in the world economy. 2014). Therefore, the main purpose of this study is to investigate whether two sustainable development goals (SDGs) of the UN are contradictory or supporting each other in low-income countries. At the same time, democratic institutions are not developed. Globalization is a process of growing exchange, interaction and integration between people, governments and private organizations across the globe. Social Indicators Research, 129(3), 11551170. Political and economic stability facilitate globalization as well. Westerlund, J. PDF The Social Impact of Globalization in the Developing Countries Previous works mostly provide global evidence, while only a few studies focus on less developed countries. Please refer to the appropriate style manual or other sources if you have any questions. (2009). Econometrica: Journal of the Econometric Society, 38, 311323. Determinants of life expectancy in developing countries. In addition, higher levels of democracy lead to higher levels of life expectancy. Even HIV-infected people can survive with antiretroviral therapy, and it also reduces sexual transmission of the infection (Dollar 2001; Cohen et al. Achieving a healthier society requires economic, social, and political integration between governments and societies. PDF Globalization Positive or Negative? 4-6 - Province of Manitoba These days we experience the coronavirus epidemic and we see once again the importance of globalization. 2006). Competition Competition in the market is largely due to globalization. Text on this page is printable and can be used according to our Terms of Service. 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 . Empirical results show democracy has a significant positive impact on life expectancy and it reduces infant mortality. To improve the health conditions of a country, the welfare of the poor should be improved as well. The journal of Politics, 74(2), 541557. Pesaran and Yamagata (2008) proposed a method to examine slope heterogeneity in panel data analysis based on the Swamy (1970)s random coefficient model. MPRA Working Paper, No. Political Research Quarterly, 54(3), 509529. 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), 1
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