Globalization and Economic Growth: Evidence from European Countries

Aderemi Timothy Ayomitunde,Ogunleye Akin George,Okoh Johnson Ifeanyi,Lucas B. Ojo

doi:10.18267/j.efaj.234

Abstract

This study examined the nexus between globalization and economic growth in European countries from 1990 to 2018 with the application of ARDL and Bounds test. Data was collected from the United Nations Conference on Trade and Development and World Development Indicator, respectively. The major findings that originated from this study are as follows. The lag value of economic growth has a significant positive relationship with its present value. Globalization index variables such as net FDI inflows and trade openness brought about economic growth in the European countries. This shows that the impact of globalization has been positive on the economies of the European countries in the last four decades. Furthermore, due to the emergence of these pertinent findings, the following recommendations are made for the policy makers in the European countries: globalization is a viable platform through which the European economies could achieve a sustainable economic growth in the short run. Therefore, whenever sustainable economic growth is the goal of the European policy makers, implementation of the policies that stimulate sporadic inflows of FDI should be embarked upon. Similarly, trade openness of these countries should be improved through exports of more value-added goods and services.

Highlights

Due to continuous rise in the level of interdependence of economies, integration of regions, disappearance of national borders and, more importantly, proliferation of digital technologies in the past few decades, globalization has becomeAderemi et al: Globalization and Economic Growth: Evidence from European Countries an inevitable phenomenon in any country or region of the world
4 Conclusion and Recommendation This study examined the nexus between globalization and economic growth in European countries during the period from 1990 to 2018 with the application of Autoregressive Distributed Lag (ARDL) and Bounds test
The following are the major findings that originated from this study

Summary

Introduction

Due to continuous rise in the level of interdependence of economies, integration of regions, disappearance of national borders and, more importantly, proliferation of digital technologies in the past few decades, globalization has becomeAderemi et al: Globalization and Economic Growth: Evidence from European Countries an inevitable phenomenon in any country or region of the world. Due to continuous rise in the level of interdependence of economies, integration of regions, disappearance of national borders and, more importantly, proliferation of digital technologies in the past few decades, globalization has become. Globalization and its corresponding impact on the various economies of the world have been recently highly controversial. Globalization has been recently perceived in some quarters to orchestrate a conflict between developed and developing countries. This is because globalization represents a rapid expansion of business opportunities and advancement of technology in developed economies (Dollar, 2001). Whereas its impact has been attributed to the persistent rise in income inequality, environmental pollution, trade policy problems and widening of the gap between the rich and the poor in developing economies of Africa (Saibu & Akinbobola, 2014; Okungbowa, Ewere & Ose, 2014; Oyewale & Amusat, 2013)

Objectives

Methods

Conclusion