Governments that know the international sanctions required by these violations have to be more cautious against human rights violations. (2019b). They also suffer from bad health conditions such as low life expectancy, communicable diseases, and high mortality rates according to MDG indexes given above. Menyah, K., Nazlioglu, S., & Wolde-Rufael, Y. Propelled by the efficiency or appeal of wireless communications, electronic commerce, popular culture, and international travel, globalization has been seen as a trend toward homogeneity that . Product sales (2009). Or, Z. Cross-sectional dependency simply refers to the situation when the shock that occurs in one country affects other countries as well. This means that unskilled workers may be affected by declining wages, which are under constant pressure from globalization.Into the FutureRegardless of the downsides, globalization is here to stay. Advantages of Globalization 1. Health and democracy. 3 is Pesaran et al. List of Electoral Democracies in 2019. https://freedomhouse.org/report-types/freedom-world (Access Date: 11.13.2019). Cadernos de Sade Pblica, 18, 17831788. Buss (2002) claimed that the intellectual property rights of advanced drugs belong to private firms in developed countries, and because of the strong protection of property rights, less developed countries have trouble accessing them. Critics also suggest that employment opportunities for children in poor countries may increase negative impacts of child labor and lure children of poor families away from school. Encyclopaedia Britannica's editors oversee subject areas in which they have extensive knowledge, whether from years of experience gained by working on that content or via study for an advanced degree. Second, empirical works in previous literature consist of traditional estimation methods called first-generation tests. International trade, capital flows, migration, technological transfer and cultural exchanges are some of the typical manifestations of this process. Improved fiscal policies within countries and international trade agreements between them also facilitate globalization. Ulucak, R., & Bilgili, F. (2018). The main problem of economics is to increase economic development and social welfare. Part of Springer Nature. The positive impact of globalization can be seen while connecting production technology. The journal of Developing areas, 41, 185204. Journal of cleaner production, 188, 144157. A., Olasehinde-Williams, G., & Etokakpan, M. U. \({\stackrel{\sim }{\Delta }}_{adj}\) is a bias-adjusted version of \(\stackrel{\sim }{\Delta }\). The relationship also occurs for men, while GDP per capita dropped from the regression model due to high collinearity. The determinants of mortality. Pesaran, M. H. (2006). (2016) concluded that foreign direct investment and trade openness which are important indicators of economic globalization affects life expectancy positively. For information on user permissions, please read our Terms of Service. Globalization and health: Pathways, evidence and policy. Globalization and growth. 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. Globally, HIV, tuberculosis, and malaria targets have been met. Text on this page is printable and can be used according to our Terms of Service. Social identity is conceptualized as attachment and identification with a group. (2019) who found a positive relationship between globalization and life expectancy. Globalization of diabetes: the role of diet, lifestyle, and genes. They used social, political, and economic globalization data separately, and the results show a significant positive effect of economic globalization on life expectancy at birth. Maximum lag level is determined as 3, while optimum lag level is determined by F joint test from general to particular. Positive effects of Globalisation. Alam, M. S., Raza, S. A., Shahbaz, M., & Abbas, Q. While cooperation between different countries requires globalization in the economic, social, and political fields, democracy is the way to ensure cooperation between governments and societies. Globalization has long been used by the automotive industry, for instance, where different parts of a car may be manufactured in different countries. China is a prime example of a country that has benefited immensely from globalization. World Development, 38(9), 11911203. Third, due to knowledge spillovers and communication technology, people can learn about healthy nutrition and protection from communicable diseases. From nonrenewable to renewable energy and its impact on economic growth: The role of research & development expenditures in Asia-Pacific Economic Cooperation countries. According to estimations of the continuous-updated fully modified (CUP-FM) and bias-adjusted ordinary least squares (BA-OLS), globalization and its subcomponents such as economic, social, and political globalization affect life expectancy positively. Berger cited the antismoking movement as a case in point: the movement began as a singular North American preoccupation in the 1970s and subsequently spread to other parts of the world, traveling along the contours of academes global network. The garment industry in Bangladesh makes clothes that are then shipped out across the world. Does globalization affect growth? Cambridge: National Bureau of Economic Research. Therefore, in order to determine the existence of a long-run relationship, we applied Westerlund and Edgerton (2007) panel cointegration test. CAS 1229). Deaton, A. This is because globalization enables economies to compete fairly at all levels, hence attracting investors. The globalization of cultural subgroups is not limited to the upper classes. For this purpose, the role of globalization and democracy in life expectancy is empirically investigated in 16 low-income countries over the period 19702017. The migrant labourers may leave their families and live temporarily in another country, thus disrupting the family and social fabric of their home . Good for living? (2019) investigated the impact of globalization, financial development, and economic growth on life expectancy. These results support the evidence of Barlow and Vissandjee (1999), Or (2000), and Shahbaz et al. Pesaran, M. H., Ullah, A., & Yamagata, T. (2008). This poor performance is in part due to social and political instability and with conflicts between the rights of individuals verses the interest of cultural groups. In order to solve the health problems of the poor, people should draw the attention of the government. This means that companies can offer goods at a lower price to consumers. w12347). Cohen, M. S., Chen, Y. Q., McCauley, M., Gamble, T., Hosseinipour, M. C., Kumarasamy, N., & Godbole, S. V. (2011). The current version of the data published by the Swiss Economic Institute is revised by Gygli et al. Health & place, 40, 6675. She or he will best know the preferred format. Estimation and inference in large heterogeneous panels with a multifactor error structure. Buss, P. M. (2002). (2008) as follows: where \(\stackrel{\sim }{S}\) is the Swamy test statistic and k is a number of explanatory variables. Expanding on the concept of Davos culture, sociologist Peter L. Berger observed that the globalization of Euro-American academic agendas and lifestyles has created a worldwide faculty cluban international network of people who share similar values, attitudes, and research goals. Globalization creates new opportunities, but at the same time it gives rise to new vulnerabilities and allows the emergence of new threats that, once materialized, can have a major impact at a. . As stated in the introduction section, low-income countries show low performance in terms of health-related sustainable development goals, and their connections with global markets are weak compared to other countries. 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. Globalization can benefit a country's economy in many ways: Increases economic growth. These results show that the methods to be used in the analysis of the stationarity of the variables and the determination of the long-run relationship should consider the cross-sectional dependence. 4, \({\stackrel{\sim }{\beta }}_{i}\) and \({\overbrace{\beta }}_{WFE},\) respectively, indicate the parameters obtained from pooled OLS and weighted fixed effects estimation, while \({M}_{T}\) is the identity matrix. The relative instability of many African nations is cited by experts as one of the reasons why Africa has not benefited from globalization as much as countries in Asia and Latin America.Benefits of GlobalizationGlobalization provides businesses with a competitive advantage by allowing them to source raw materials where they are inexpensive. where \({S}_{it}\) is partial sum process of the fully modified estimate of \({z}_{it}\) and \({\widehat{w}}_{i}^{-2}\) is the estimated long-run variance of \({u}_{it}\) conditional on \(\Delta {x}_{it}^{^{\prime}}\). Indeed, the working conditions of people at some points in the supply chain are deplorable. The impact of economic, social, and political globalization and democracy on life expectancy in low-income countries: are sustainable development goals contradictory?. To improve the health conditions of a country, the welfare of the poor should be improved as well. For more than 1,500 years, Europeans traded glass and manufactured goods for Chinese silk and spices, contributing to a global economy in which both Europe and Asia became accustomed to goods from far away. Another group stems from the rise of a transnational workforce. Trade openness is one of the most important dimensions of globalization. https://doi.org/10.1007/s10668-021-01225-2, DOI: https://doi.org/10.1007/s10668-021-01225-2. 71112. The critical values will be provided using the bootstrap method in order to prevent cross-sectional dependence. Provides Cheaper Goods for Consumers New New technologies which emerge in some developed country are available to other poor and underdeveloped Applied economics, 38(10), 10911110. Westerlund, J., & Edgerton, D. L. (2007). The first one blames globalization and argues that poverty and as a result of this, low life expectancy derives from the inequality created by globalization itself (Buss 2002). (2006). 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. Journal of Financial Econometrics, 5(3), 491522. Democracy can be considered as another determinant of life expectancy. Our editors will review what youve submitted and determine whether to revise the article. As a dummy variable, living in Sub-Saharan Africa is another factor that reduces life expectancy due to communicable diseases like HIV, malaria, etc. 1. 2006). A bias-adjusted LM test of error cross-section independence. (2007). It may also increase domestic income inequality. There are also methodological weaknesses in previous empirical studies. (2019). Firstly, we . The effect of democracy on life expectancy is also positive and significant at 1% which confirms the findings of Franco et al. Following the related literature, we present our model as follows: where lex is life expectancy at birth which refers to the average number of years a newborn is expected to live. The Triangular Trade network in which ships carried manufactured goods from Europe to Africa, enslaved Africans to the Americas, and raw materials back to Europe is another example of globalization. In order to achieve SDG3, economic, social, and political integration between countries should be encouraged and democratic institutions should be improved. Pesaran, M. H., & Yamagata, T. (2008). 1, X refers to the KOF Globalization Index developed by Dreher (2006). Sen, A. Even HIV-infected people can survive with antiretroviral therapy, and it also reduces sexual transmission of the infection (Dollar 2001; Cohen et al. The improvement of the health conditions of the poor countries depends on global partnership and economic, social, and political integration among countries. 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. It also offers broader opportunities for entrepreneurs and paves the way for innovation (Grossman and Helpman 2015: 101). Pesaran MH (2004) General diagnostic tests for cross section dependence in panels. 1, significant differences exist between developing countries and developed countries in achieving health-related goals. Another example of this kind of diversity of Countries are aware of infectious diseases in different parts of the world in a very short time and can take measures to stop the spread of the virus. In addition, democracy improves child health and it also increases the beneficial effects of globalization on child health. The impact of economic, social, and political globalization and democracy on life expectancy in low-income countries: are sustainable development goals contradictory? Book Bingley: Emerald Group Publishing Limited. In the estimation of long-run coefficients, the CUP-FM estimator was used and this method is based on the following regression, where \({\widehat{\lambda }}_{i}^{^{\prime}}\) refers to the estimated factor loadings and \(\hat{y}_{{i,t}}^{ + } = y_{{i,t}} - \left( {\lambda _{i} ^{\prime } \hat{\Omega }_{{F \in i}} + \hat{\Omega }_{{\mu \in i}} } \right)\hat{\Omega }_{{ \in i}}^{{ - 1}} {{\Delta }}x_{{i,t}}\) indicates the transformation of the dependent variable for endogeneity correction. It has been observed in the literature that possible contradictions between these goals are ignored. Harrison, A. If you have questions about how to cite anything on our website in your project or classroom presentation, please contact your teacher. The effects of globalization on growth were mostly driven by free trade, international specialization, technology transfers, knowledge spillovers, and competitive markets. These include improving international resource mobility, helping developing countries to attain debt sustainability, promoting the transfer of information and technology between developed and developing countries, an open and rule-based free trade system, encouraging publicprivate and civil society partnerships, increasing transparency and accountability, and high quality and reliable data (United Nations 2019). Technology, goods, investments, information, and services along with the labor market are the most popular components of such activity. Another finding in this study shows that health expenditures in those countries failed to increase life expectancy. Prevention of HIV-1 infection with early antiretroviral therapy. The results show that the null of cointegration is accepted for all models. Review of International Economics, 16(3), 516536. First, it can be observed that previous studies are mostly based on traditional estimation methods. In conclusion, no contradiction was found between SDG3 and SDG17 in those countries. The stata journal, 6(4), 482496. In their study, they used life expectancy at birth and child mortality variables for 146 countries as indicators of health outcomes. Chudik A, & Pesaran, MH (2013) Large panel data models with cross-sectional dependence: a survey.
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