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Journals / Ekonomi Maliye İşletme Dergisi / 2022 / Cilt: 5 - Sayı: 1

EVALUATION OF THE EFFECT OF GLOBALIZATION ON THE EURO AREA COUNTRIES’ ECONOMIC GROWTH WITH PANEL DATA ANALYSIS

Eylül KABAKÇI GÜNAY
Dilara SÜLÜN
Pages
118–129
Publication Date
2022-06-30
DOI
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AI Summary & Key Takeaways

AI Insight
⚡ TL;DR(Too Long; Didn't Read)

Globalization has increasing effects on the economic growth in Italy, Portugal, Slovenia, and Spain but decreasing effect in Ireland, Lithuania and Luxembourg.

📌 3 Key Takeaways

🎯
Objective & Hypothesis:This study aims to determine whether globalization affects economic growth in Euro Area countries or not and the direction of the affect.
📊
Key Findings & Data:The data used are annually and cover the period from 2000 to 2017.
💡
Conclusion & Impact:Globalization has increasing effects on the economic growth in Italy, Portugal, Slovenia, and Spain but decreasing effect in Ireland, Lithuania and Luxembourg.
🔬Design:Modeling & Simulation
📍Scope:2000 Verileri
⚙️Variables:Globalization · KOF Index · Panel Data

Abstract

This study aims to determine whether globalization affects economic growth in Euro Area countries or not and the direction of the affect. The data used are annually and cover the period from 2000 to 2017. In the study, economic growth which is the dependent variable represents the annual GDP growth rate, and globalization which is the independent variable represents KOF globalization. Variables other than globalization that affect economic growth are included in the model as instrumental variables. These instrumental variables are labour force participation rate, foreign direct investments, external balance of goods and services and gross fixed capital formation. Eberhardt and Teal’s (2012) Augmented Mean Group Estimator (AMG) was conducted to foresee long-term coefficients. Consequently, globalization has not same effects on economic growth in each euro area country. Globalization has increasing effects on the economic growth in Italy, Portugal, Slovenia, and Spain but decreasing effect in Ireland, Lithuania and Luxembourg.

Özet

This study aims to determine whether globalization affects economic growth in Euro Area countries or not and the direction of the affect. The data used are annually and cover the period from 2000 to 2017. In the study, economic growth which is the dependent variable represents the annual GDP growth rate, and globalization which is the independent variable represents KOF globalization. Variables other than globalization that affect economic growth are included in the model as instrumental variables. These instrumental variables are labour force participation rate, foreign direct investments, external balance of goods and services and gross fixed capital formation. Eberhardt and Teal’s (2012) Augmented Mean Group Estimator (AMG) was conducted to foresee long-term coefficients. Consequently, globalization has not same effects on economic growth in each euro area country. Globalization has increasing effects on the economic growth in Italy, Portugal, Slovenia, and Spain but decreasing effect in Ireland, Lithuania and Luxembourg.

🔖

Cite This Article

GÜNAY, E. K., SÜLÜN, D. (2022). EVALUATION OF THE EFFECT OF GLOBALIZATION ON THE EURO AREA COUNTRIES’ ECONOMIC GROWTH WITH PANEL DATA ANALYSIS. Ekonomi Maliye İşletme Dergisi, Cilt: 5 - Sayı: 1, 118–129. https://ajindex.com/articles/422612

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