KOF Index Of Globalization Research Articles

Globalisation Impacts on Timber Consumption in Slovakia

Research background: Globalisation is nowadays phenomenon which affects all economic sectors. The pros and cons of globalisation can also be observed in the case of forestry and forest-based complex in Slovakia. Timber trade and market follows the theory of derived demand, which means that demand for wood depends on the demand for final products. We can observe a significant impact of globalisation on changes in the use of wood from traditional to new ecological and sustainable use. Since 1993 the consumption of industrial roundwood in Slovakia has increased by almost 185%. Purpose of the article: The aim of this study is to examine the impact of globalisation on the consumption of coniferous and non-coniferous industrial roundwood in Slovakia, and to determine the relationship between the consumption of industrial roundwood and trends of globalisation trends in Slovakia. Methods: The development of KOF globalization index was analysed in the period 2003 to 2018. In addition, the development of the consumption of coniferous and non-coniferous industrial roundwood was examined. The correlation analysis and linear regression were used to analyse the relationship between the KOF globalisation index and development of consumption of coniferous and non-coniferous industrial roundwood in Slovakia. Findings & Value added: The results of correlation analysis show statistically significant relationship between globalisation and the development of consumption of industrial roundwood in Slovakia. We can conclude that the development of globalisation has more significant impact on consumption of non-coniferous industrial roundwood than on consumption of coniferous industrial roundwood.

Identification of globalizing factors of socio-economic development: the concept of endogenization

The article addresses the problem of the impact of the modern socio-economic development globalization factors in the context of its endogenization. The authors argue that forming of the global economic system with high interdependence between regional integration entities and interaction of national economies in global conditions of uncertainty, instability, and unpredictability constitute the nature and main feature of modern globalization processes. Global interdependence is the major factor of global interaction for an efficient solution to joint problems, their prevention, and realization of joint interests, including political, economic, social, and environmental, etc. The fundamental interests of global interaction include the Sustainable Development Goals directed at “building forward better” based on the “leave no one behind” principle defined in the UN Sustainable Development Summit Resolution “Transforming our world: the 2030 Agenda for Sustainable Development” and the implementation of the Paris Climate Accords and European Green Deal. The globalization factors are identified following the methodology of KOF Globalization Index calculation on the national level: by globalization types – de-facto and de-jure; by the kind of globalization – economic, social, political; by the sub-kind of globalization – trade-based, finance-based, interpersonal, informational, cultural. The following issues are determined based on the content analysis of analytical, scientific, and legal sources and governance practices in the socio-economic development: main factors affecting de-facto the economic growth in Ukraine and its regions; external political factors that strengthen the relationship between the national economy and modern globalization processes and foster endogenous development of Ukrainian regions; factors of goal-oriented endogenization of regional development in Ukraine (domestic political, spatial, economic, social, environmental) as prospective drivers of sustainable socio-economic growth in Ukraine.

The Impact of Globalisation on Value-added Wood Products Trade

Research background: The development of the Slovak economy depends on the demand in foreign markets. The Slovak economy is open and responds very sensitively to global changes. Globalisation brings positive as well as negative impacts on national economies. These impacts are also noticeable in the case of value added wood products. Globally, the furniture trade has grown more quickly than furniture production in the last ten years. The value of the world furniture trade has grown by 65%. On the other hand, domestic sales of furniture are low due to the orientation of the Slovak furniture producers on export, even if at the present time the positive development is reflected in an increasing total sales volume. Purpose of the article: This paper is focused on the assessment of globalisation impact on value added wood products trade. The aim of the paper is to determine the relationship between the trends of globalisation and furniture trade in Slovakia. Methods: The development of foreign furniture trade in Slovakia was analysed. In addition, the development of the KOF globalisation index was examined in the period from 2001 to 2017 by applying the linear regression and correlation analysis. Findings & Value added: Based on the analysed results, a positive linear relationship between the development of furniture trade in Slovakia and globalisation was observed. The results further show that the impact of globalisation is more significant in the case of export of furniture rather than its import.

Perdida na (des)globalização? À procura das causas da perda de relevância da OMC

The main purpose of this article is to try to answer the following question: what happened to the World Trade Organization (WTO) which today seems to have an increasingly smaller role in global trade? For this purpose, a short exploratory analysis was carried out based on a qualitative methodology trough documentary research and the use, albeit selective, of the literature on the subject. Additionally, it was also used an empirical study, the KOF globalization index. The approach to the subject was structured in several points. The first one was the contemporary commercial system. The second was the transformation of an initial optimism into disbelief due to the failure of the Doha Round. The third point was the decision-making at the WTO and the system for resolving trade disputes. Finally, the contradictory trends of globalization and deglobalization are addressed. The approach is concluded with brief reflections on the future of the WTO and topics for further research are also being pointed out.

Neo-liberal Globalization and Income Inequality: Panel Data Evidence from OECD and Western Balkan Countries

ABSTRACT Over the last few decades, neo-liberal globalization—marked especially by the liberalization of finance, extended processes of commodification/privatization, free trade and free flow of capital—has coincided with rising income inequality and an ostensible decline in global poverty levels, the latter being largely attributed to China’s and India’s rapid economic development since the 1980s. Using a three-year-averaged non-overlapping data from 1991 to 2017 covering 39 OECD and western Balkan countries and applying the efficient Feasible Generalized Least Square (FGLS) estimation method, this article examines the effect of institutional ‘quality’, export complexity, and labour union density on income inequality. We have indications that neo-liberal globalization, measured using the KOF globalization index and sub-indicators, is positively correlated with income inequality. We have also indications that institutional ‘quality’, that is, mechanisms of ‘good governance’, tend to reduce income inequality. Importantly, the level of economic or export complexity and the degree of labour unionization were also found to reduce income inequality, while improving institutional ‘quality’ and mitigating downward pressures on wages.

Protectionism and international trade: A long-run view

This paper investigates the long-run relationship between international trade and protectionism, which is measured by a sub-component of the KOF globalization index using a standard import model with a heterogeneous balanced panel of 34 countries from 1970 to 2017. The model is tested using GDP and the Import Intensity-Adjusted Demand (IAD) as an activity variable for a performance comparison. Both specifications are estimated using recent advances in the panel autoregressive distributed lag model literature with cross-sectional dependence. The cross-sectional autoregressive distributed lag (CS-ARDL) and the cross-sectional distributed lag (CS-DL) models provide similar results. Mean group estimates show a proportional impact of IAD on international trade whilst the GDP effect is larger. The long-run protectionism elasticity is always negative and significant but less than half of the import price elasticity.

Globalization and female economic participation in MINT and BRICS countries

PurposeThis study examines the effect of globalization on female economic participation (FEP) in MINT (Mexico, Indonesia, Nigeria and Turkey) and BRICS (Brazil, Russia, India, China and South Africa) countries between 2004 and 2018.Design/methodology/approachFour measures of globalization are employed and sourced from KOF globalization index, 2018, while the female labour force participation rate is a proxy for FEP. The empirical evidence is based on the Pooled Mean Group (PMG) estimator.FindingsThe findings of the PMG estimator from the Panel ARDL method reveal that political and overall globalization in MINT and BRICS countries have a positive impact on FEP, whereas social globalization exerts a negative impact on FEP in the long-run. It is observed that economic globalization has no long-run effect on FEP. Contrarily, all the measures of globalization reflect no short-run effect on FEP. This supports the argument that globalization has no immediate effect on FEP. Thus, it is recommended that both MINT and BRICS countries should find a way of improving the process of globalization generally to empower women to be involved in economic activities.Originality/valueThis study complements the extant literature by focusing on how globalization dynamics influence FEP in the MINT and BRICS countries.

Globalisation and government spending: Evidence for the ‘hyper‐globalisation’ of the 1990s and 2000s

AbstractIn this paper, we provide an up‐to‐date empirical assessment of the relationship between economic globalisation and government spending for the ‘hyper‐globalisation’ period of the 1990s and 2000s. We use data on government consumption spending and more disaggregated spending components (e.g., social welfare). We also use a range of globalisation measures, including the most recent version of the KOF globalisation index, and a combination of econometric methods, including fixed‐effects and instrumental variable (IV) estimation. The results suggest that hyper‐globalisation has had divergent and conflicting effects on consumption spending: while de jure trade globalisation has tended to raise spending, de jure financial globalisation has tended to reduce it. We also find evidence that the positive effect of de facto trade globalisation on spending weakened significantly during the 1990s and 2000s, in comparison with earlier decades. These effects could have contributed to the growing political backlash witnessed against globalisation since the early 2000s.

VECTOR AND STRUCTURAL CHANGES IN THE MODERN WORLD

The article examines the vector and structural changes in the modern world, caused by exogenous and endogenous factors and identified on the basis of determining the countries status taking into account the processes of changing their positions according to the group affiliation (hegemonic countries, applicant countries, «third world» countries, as well as other countries which gravitate to the world vanguard or rearguard ones). The proposed methodology of research into the countries global status is based on a comprehensive approach to the analysis of socio-natural systems, presented as a combination of economic, political, innovative, social and spiritual spheres, as well as the sphere of functioning of institutions and the sphere of human interaction with nature. The k-means clustering and the fuzzy logic apparatus were used to find out the vector and structural changes taking place in a globalized society. The analysis is based on processing the country data by the following indicators: the KOF Globalization Index, the Legatum Prosperity Index, the Global Competitiveness Index, the Global Innovation Index, the Human Development Index, the Fragile States Index, and the Environmental Performance Index (2009—2018). They were selected as the attributes, the set of which allows to distinguish clusters. The countries were clustered according to the components of their socio-natural systems. According to the Index of Global Status of Countries, the place that belongs to the subjects of international relations was estimated and their status was identified. On this basis, the differences in the development of the countries were detected. Significant differences in the positioning of states in the globalized world were objectified. The conditions of the formation of countries global status and the causes of the status dynamics were revealed. The fact of asymmetry, polarization and inequality progression was proved. It was demonstrated that the study of vector and structural changes occurring in the world economic system and globalized society extends the scientific notion about the present day systemic contradiction of the post-industrial and post-capitalist eras of the globalized world being formed.

Economic Globalisation and Economic Growth Dynamics in Nigeria

Globalisation has been a topical issue both in the industrialized and developing nations of the world, this is not unconnected with the impacts it had on the attainment of macroeconomic objectives of these nations. This connotes that globalisation is crucial because it is typically affected by exogenous shocks such as political regime shifts, international conflicts or trade liberalization and unexpected changes to business condition. It is on this premise that the study examined the impact of globalisation on economic growth in Nigeria. This study adopted ex post facto research design. The data were obtained from the KOF globalisation index of Swiss economic institute and World development Indicator of World Bank for the period 1970-2017 for Nigeria representing a total of forty-eight observations. The documents were already exposed to the scrutiny of the appropriate regulatory agencies and the data were analyzed using descriptive and inferential statistics employing the time series techniques of asymmetric co-integration. The study found that economic globalisation had long-run asymmetric cointegrating effect on economic growth in Nigeria (ɸ = 11.965, R2 =0.24, KOFECGI = 1.657, t- Stat = (46) = 3.784, p<0.05). The study further recommends that government policy should be designed in such way that it reduce overdependence on the highly industrialized economy, so as to avoid international shocks that might affect the economy negatively.

Can globalisation promote female labour force participation?

PurposeThis study aims to analyse whether globalisation, i.e. informational and economic globalisation, promoted or impeded female labour force participation (FLFP) in South Asia.Design/methodology/approachThe KOF Globalisation Index is used alongside a fixed effect panel data Discroll–Kraay estimator to control for unobserved factors and achieve robust standard errors. The sample covers all South Asian countries for the period 1999–2015.FindingsGlobalisation does not advocate the “feminisation of employment”; in fact, the impact is negative. This is driven by the economic dimension of globalisation, particularly for younger women. However, this impact is mitigated by informational globalisation that affects FLFP positively, especially for women aged 35 years and older.Practical implicationsWithout support of the right governmental policies, there is a danger of globalisation creating new obstacles for women to enter the labour market.Originality/valueThis paper adds to the existing literature by using the more comprehensive KOF globalisation measure to identify the overall effect of globalisation on FLFP in South Asia, being the first study to analyse the impact of informational alongside economic globalisation, and investigating whether globalisation affects the labour force participation rate of various female age cohorts differently.

Social consequences of economic globalization: experience of developed and developing countries and perspectives of optimization

PurposeThe purpose of the research is to determine the social consequences of economic globalization based on experience of developed and developing countries and to determine the perspectives of optimization of this process through regulation.Design/methodology/approachThe research method is correlation analysis, for it allows determining dependencies between the indicators without requirements to their close mutual dependence. The research objects are top ten developed and top ten developing countries as to the KOF globalization index in 2019.FindingsIt is determined that, contrary to high economic risks, social risks of globalization are very low. Instead of this, in the course of globalization the social advantages increase – they are expressed in the form of harmonization of the labor market, development of digital society and increase of population's quality of life – in particular, provision of balance of the global society by leveling the social disproportions between developed and developing countries. It is substantiated that consequences that stimulate the increase of population's quality of life in developing countries are more expressed than in developed countries. This means that developing countries, which are traditionally more inclined to limiting the influence of globalization on them due to economic reasons, have to reconsider their foreign economic policy and include the measures on stimulation of globalization in the interests of social development. Other than that, the differences in consequences for developed and developing countries are minimal. There is no imbalance of consequences that is peculiar for the economic sphere, in which the main advantages are obtained by developed countries, and developing countries bear most of the costs. From the social point of view, globalization could be characterized as a positive phenomenon of modern times.Originality/valueThe offered authors' recommendations will allow optimizing the influence of globalization on the social environment in developed and developing countries and ensuring usage of economic globalization as a mechanism of implementation of the global goals in the sphere of sustainable development.

Ukraine in the world: socio-economic dimension

The article emphasizes that the issue of Ukrainian socio-economic development trends under globalization. Indicators of socio-economic development of Ukraine are analyzed on the basis of national statistical, financial and budgetary reports, data of the International Monetary Fund and the World Bank. The dynamics of such indicators over a period of 5 – 10 years, as well as the projected indicators for 2020 – 2023, are traced. Dynamic of GDP in constant prices has shown the results of relatively successful 2017 – 2019 formation of the upward period of the economic cycle which was characterized by moderate growth of real GDP within 3%. Ukraine is likely to be able to sustain such growth rates without significant upheavals, with a well-designed and reasonably stimulated economy. GDP by purchasing power parity for most European countries has shown a disappointing tendency. Ukraine has been among the outsiders for a long time (below – Moldova). Ukraine will continue to occupy the last positions in terms of economic development compared to other European countries despite the IMF's positive outlook for a steady increase in purchasing power. It is important to focus on improving financial and monetary policy, in particular, reducing and maintaining debt at the level acceptable by the Budget Code of Ukraine at 60% of GDP. In previous years, the share of debt in GDP reached a record 80% for Ukraine which violated the rules of the current legislation. Monetary policy should be aimed at improving the conditions for doing business, which will allow Ukraine to improve its position in the global ratings of competitiveness and ease of doing business. The most representative global indices are investigated and the positions of the state in world and European rankings are analyzed. There are: KOF Globalization Index, Corruption Perceptions Index, The Global Competitiveness Index, Ease of Doing Business, Global Innovation Index and E-Government Development Index, World Happiness Index. The basic tendencies of socio-economic development of Ukraine, risks and ways of their minimization are determined.

The underground economy in transition countries from the perspective of globalization: The case of Vietnam

The underground economy, also known as the shadow economy, has been recognized for a long time and increasingly plays an important role in economies around the world, especially for developing countries like Vietnam. Over the past few years, the strong growth of the Vietnamese economy has recognized the development and significant contribution of informal economic activities. This study was conducted to evaluate the effects of globalization and economic openness on the size of the informal economy to fill the theoretical gap and proposed appropriate recommendations for policymakers. The research uses qualitative and quantitative analysis methods. We collected KOF Globalization Index from ETH Zurich - Swiss, the trade index from World Bank and the size of the underground economy in Vietnam from the research of Medina and Schneider (2018) for analyzing. The results show that the trade openness has a positive impact on the development of globalization in Vietnam. Also, the promotion of globalization plays a vital role in reducing the size of the underground economy in Vietnam. Several implications for policy makers has been proposed based on our findings.

What Are the Implications of Globalization on Sustainability?—A Comprehensive Study

It is becoming more and more certain that globalization is not just purely an economical phenomenon; it is exhibiting itself on a worldwide level. Amid globalization’s observable appearances, the most obvious are the larger international mobility of goods and services, flows of finance capital, data and information and most importantly people. On top of that, there are technological progresses and more international cultural interactions, which are facilitated by the enhancement of free trade of large quantities of more differentiated goods and also through immigration and tourism. The political changes and ecological concerns play an important part in this regard. In the current study, sustainability Indices are linked with the KOF Globalization Index to understand if more globalized countries are performing better in terms of sustainable development and its dimensions, especially environmental sustainability. Sustainability indices such as Human Development Index (HDI) and Environmental Performance Index (EPI) showed a stronger relation with different levels of globalization while others (Red List Index (RLI), Environment Sustainability Index (ESI)) did not. The results reveal that globalization has a positive implication on sustainability in the overall perspective.

Does technological innovation reduce CO2 emissions?Cross-country evidence

Based on the data of BP Statistical Review of World Energy, KOF Globalization Index, and the World Development Indicators, this paper explores the impact of technological innovation on CO2 emissions in a panel of 96 countries over the period 1996–2018 with spatial econometric models. First, both CO2 emissions and R&D intensity show significant spatial correlation across countries, and thus spatial econometric models are more suitable for research. Second, technological innovation has no significant mitigation effect on CO2 emissions globally. However, group-based studies show that technological innovation in high-income, high-technology, and high-CO2 emission countries can significantly reduce CO2 emissions in neighboring countries, while R&D intensity in other countries even increase CO2 emissions. Third, the higher the level of globalization is in a country, the more obvious the effect technological innovation has on reducing CO2 emissions. Among them, the moderating effect of political globalization is the most obvious and even low-income, low-technology, and low-CO2 emission countries can benefit from it; the “pollution haven” in economic globalization and the guidance of environmental protection awareness in social globalization deserve more attention. Therefore, countries should pay attention to the spillover effects of technological innovation, improve the corresponding level of globalization according to their own characteristics, and ultimately enhance environmental quality through international cooperation.

Modeling globalization processes taking into account structural changes, using Algeria as an example

This work is devoted to modeling globalization processes, taking into account the dynamic links between them and structural changes in the trend parameters. Its relevance is due to the fact that most of the work on this topic is devoted to studying the impact of globalization on individual indicators of socio-economic development, and not enough attention is paid to studying the formation of the General trend of globalization, the interaction of its components. The latter is particularly important for developing countries, which are characterized by a strong heterogeneity of these components in the structure of globalization, as well as a marked variability of parameters in their trends. We proposed an approach of cointegration analysis of globalization processes taking into account structural shifts in the trends of these processes.As an example of the implementation of this approach, we consider modeling the dynamics of the components of the KOF globalization index for Algeria during the period 1970-2015. The stationarity of the series was tested using unit root tests with structural breaks: Andrews-Zivot and Perron tests for a series with one structural break, and Clemente-Montanes-Reyes and Lee Strazicich tests for series with one or two structural breaks.The Johansen test for small samples taking into account exogenous variables was used for cointegration testing.The presence of dynamic relationships was confirmed by comparing forecasts for the vector error correction model and one-dimensional models of processes using the Dibold-Mariano test. Interpretation of models was based on estimates of the impulse response function and the Cholesky decomposition of prediction error. The results show that the formation of the KOF Globalisation Index for Algeria is largely due to the mutual influence of its components. The dynamics of political and economic globalization are formed as a result of mutual changes in the sphere of external economic and political relations. The role of international cooperation in the social sphere for the other two components of globalization in Algeria is small. At the same time, the dynamics of social globalization is determined by its own components. The proposed modeling methodology can be applied to the study of globalization processes in other countries of the world in order to justify political decision-making.

The effects of economic globalisation and ethnic fractionalisation on redistribution

We examine the effect of economic globalisation on income redistribution and hypothesise that it depends on ethnic fractionalisation. In highly fractionalised countries, powerful ethnicities are able to extract globalisation-induced benefits, whereas their governments face substantial political obstacles when redistributing income between ethnic groups. Using the newly constructed KOF Globalisation Index, we find supportive evidence for the interactive effect of ethnic fractionalisation and de jure financial globalisation on redistribution. In particular, the total effect of de jure financial globalisation on redistribution is negative in highly fractionalised countries. Governments in these countries are apparently not only reluctant to offset potential consequences stemming from de jure financial globalisation, but they even reduce redistribution to lower levels.

Globalization and slums: How do economic, political, and social globalization affect slum prevalence?

This study examines how globalization affects slum prevalence in developing countries. Recognizing that globalization is a multifaceted phenomenon, we disaggregate globalization into three conventional sub-dimensions – economic globalization, political globalization, and social globalization – and propose the hypotheses that economic globalization is likely to increase slum prevalence while political and social globalizations are likely to reduce it. To test the hypotheses, we utilize the cross-national dataset on urban slum population in developing countries assembled by the UN-Habitat and the KOF globalization index, the most commonly used dataset of globalization. We report strong empirical support for our hypotheses: political and social globalizations indeed reduce urban slum populations but economic globalization increases urban slum populations. The findings suggest that diverse aspects of globalization should be considered regarding slum prevalence in developing countries.

The Effect of Globalization on Economic Development Indicators: An Inter-Regional Approach

Background: The analysis of the problems derived from globalization has become one of the most densely studied topics at the beginning of this millennium, as they can have a crucial impact on present and future sustainable development. This paper analyzes the differential patterns of globalization in four worldwide areas predefined by The World Bank (namely, High-, Upper-Middle-, Lower-Middle-, and Low-Income countries). The main objective of this work is to estimate the effect of globalization on some economic development indicators (specifically per capita income and public expenditure on health) in 217 countries over the period 2000–2016. Methods: Our empirical approach is based on the implementation of a novel econometric methodology: The so-called Toda–Yamamoto procedure, which has been used to analyze the possible causal relationships between the involved variables. We employ World Development Indicators, provided by The World Bank, and the KOF Globalization Index, elaborated by the KOF Swiss Economic Institute. Results: The results show that there is a causal relationship in the sense of Granger between globalization and public expenditure on health, except in High-Income countries. This can be interpreted both negatively and positively, confirming the double character of globalization, as indicated by Stiglitz.