Abstract
This study builds a simultaneous equation model that establishes interconnections among the measures of globalization, measures of democracy, human development, corruption perception index and per capita income, which in turn jointly influence social progress. The model has eleven equations in which the response variables and the predictor variables are log-linearly related. The empirical data used for estimation of the model pertain to the period 2006-2016 for 116 countries distributed over all the continents. The model has been estimated by the conventional Two-Stage Least Squares (2-SLS) and alternatively by a modified 2-SLS in which, at the second stage, Shapley value regression has been used to ameliorate the detrimental effects of collinearity among the predictor variables. The modified 2-SLS outperforms the conventional 2-SLS. The study finds that globalization positively influences and is influenced by democracy, human development and social capital. Globalization reduces corrupt practices and integrity promotes globalization. Democracy, social capital, human development and globalization affect social progress positively. It has also been found that trans-border personal connection, cultural proximity, democracy and social capital are elastic with respect to their predictors.
Highlights
This study investigates into the debated inter-relationships among globalization, political regimes, corruption, human development and social progress in a simultaneous model framework
It recognizes that a school of scholars holds that globalization and democracy uphold each other and they jointly hold back corruption, endorse human development and promote social progress
It is acknowledged that the opponent school of scholars relate globalization to limiting the scope of democracy, promoting corruption, misaligning human and non-human capital with globalization sponsored development and thwarting social progress
Summary
This study investigates into the debated inter-relationships among globalization, political regimes, corruption, human development and social progress in a simultaneous model framework. It recognizes that a school of scholars holds that globalization and democracy uphold each other and they jointly hold back corruption, endorse human development and promote social progress. Globalization positively responds to democratic practices, human development and strong social capital. It is acknowledged that the opponent school of scholars relate globalization to limiting the scope of democracy, promoting corruption, misaligning human and non-human capital with globalization sponsored development and thwarting social progress. An attempt has been made to put together the views and most important empirical findings of various scholars and drawing upon the same build as well as estimate a simultaneous equation model that may reveal the structural relationships among the said variables.
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