Governments that know the international sanctions required by these violations have to be more cautious against human rights violations. Kabir (2008) analyzed the determinants of life expectancy in 91 developing countries. Globalization is defined for individuals as their connectivity in global networks. Globalization and disease: In an unequal world, unequal health! The results of homogeneity tests developed by Pesaran and Yamagata (2008) are given in Table 2. Polity IV Project: Political regime characteristics and transitions, 18002002: Dataset users manual. However, according to his results, in 19 of 99 countries, globalization affects health positively. Swiss Economic Institute. (2019b). 4. 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. Our work supports the idea that in order to achieve SDG3, global partnership and democracy are required. She or he will best know the preferred format. National Geographic Society is a 501 (c)(3) organization. Socially, globalization has facilitated the exchange of ideas and cultures, contributing to a world view in which people are more open and tolerant of one another. Our dataset is covering the period 19702017. (2019) investigated the impact of globalization, financial development, and economic growth on life expectancy. As cultures advanced, they were able to travel farther afield to trade their own goods for desirable products found elsewhere. Article 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. Product sales As Dreher (2006) mentioned, despite its possible inequality effects, the net effect of globalization on development is mostly positive and our empirical work supports that idea. On the other hand, the number of physicians has a positive and significant impact on life expectancy, while malnutrition reduces it. This leads to the reallocation of resources to solve the primary problems of the society. Buss, P. M. (2002). The garment industry in Bangladesh, for instance, employs an estimated four million people, but the average worker earns less in a month than a U.S. worker earns in a day. Receiving an opportunity to extend their businesses and cooperate with foreign partners, people with high incomes obtain an opportunity to increase it even more. The hope is that increased global trade will lead to more competition, which will spread wealth more equally. Fixed effects estimation results reveal a significant negative relationship between public health expenditure and women's premature death. Journal of Econometrics, 142(1), 5093. 71112. In addition, democracy is an important tool in achieving the goal of a healthy society, as it fosters accountability, transparency, and partnership between governments and the societies they rule. Democracy also refers to accountability levels of governments. A panel bootstrap cointegration test. In 2013, a textile factory building collapsed, killing more than 1,100 workers. Economic Modelling, 37, 386394. Raul Prebisch and the origins of the doctrine of unequal exchange. The following are some of the advantages and disadvantages of globalization. Marshall, M. G., & Jaggers, K. (2002). Particularly rising sexual tourism and migrant sex workers increase the spread of sexually transmitted diseases such as HIV/AIDS. Therefore, the positive impact of globalization on health first emerged with its positive effects on economic growth (Labont et al. Rao, B. According to results, democracy has a positive and significant effect on life expectancy at birth and it also reduces child mortality. (2016). As you stop to fill up your car (paying approximately $2.50 to $3.50 per gallon of gas in the U.S.) and then . The changes created by social and political globalization play a major role in this emergence. By minimizing the BIC, we obtain \(\widehat{k}\). (2008) bias-adjusted LM tests are given in Table 1. According to ARDL estimation results, life expectancy is positively associated with higher levels of globalization. Econometrica: Journal of the Econometric Society, 38, 311323. In low-income countries where people still suffer from having difficulty in meeting basic human needs, increasing per capita income may lead to better nutritional status, easier access to advanced treatment methods and technology. Journal of economic perspectives, 20(3), 97120. 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. Maximum lag level is determined as 3, while optimum lag level is determined by F joint test from general to particular. According to the KOF Globalization Index published by the Swiss Economic Institute (2020), low-income countries have the lowest globalization level compared to other income groups. Globalization has long been used by the automotive industry, for instance, where different parts of a car may be manufactured in different countries. 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. Following this, Besley and Kudamatsu (2006) investigated the nexus between democracy and health outcomes utilizing panel data from the 1960s to the 2000s. Second, the panel data analyses are based on the first-generation estimators that assume cross-sectional independence. CESifo Working Paper (No. The existence of cross-sectional dependence in variables and the error term is obtained from the model analyzed with Pesaran (2004) \({\text{CD}}_{{{\text{LM}}}}\) and Pesaran et al. Another linkage can be established through accountability (Besley and Kudamatsu 2006). The advantages of globalization are actually much like the advantages of technological improvement. 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. The dataset is consisting of a weighted average of collected data from several co-founders. Swamy, P. A. Since achieving these goals requires the cooperation of countries and societies, Partnership for the Goals is determined as the seventeenth SDG. Finally, gdp is real GDP per capita (constant 2010 $) and it is provided from World Bank World Development Indicators. 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. Low-income countries are mostly African countries where there is a rising trend in terms of integration to global markets and institutions (Beck et al. Social globalization also provides cultural integration among the worlds people, and it changes lifestyles and consumption patterns worldwide. Guivis Zeufack Nkemgha, Honor Oumb Tkam & Alim Belek, Muhamadu Awal Kindzeka Wirajing, Tii N. Nchofoung & Roger Tsafack Nanfosso, Yogi Sugiawan, Robi Kurniawan & Shunsuke Managi, Pilar Gracia-de-Rentera, Hugo Ferrer-Prez, George Philippidis, Environment, Development and Sustainability 5. Sustainable Development Goal Indicators. Geneva: World Health Organization. Globalization is affecting every facet of our lives, positively and negatively. \({\stackrel{\sim }{Z}}_{it}\)=k and \(Var\left({\stackrel{\sim }{Z}}_{it}\right)=2k(T-k-1)/T+1\). Has globalization increased inequality? 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 . 1, X refers to the KOF Globalization Index developed by Dreher (2006). The second group mostly focuses on the benefits of free trade, capital mobility, and technology transfers (Rao and Vadlamannati 2011). Globalization refers to the increasingly integrated nature of economies around the world. World Development Indicators. 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. This method considers the cross-sectional dependence and can be used, while N>T and T>N. The CADF regression is: \({\stackrel{-}{y}}_{t}\) is the average of all N observations. Put simply, globalization is the connection of different parts of the world. BLM Factors related to globalization can also cause workers to migrate from their homelands in poorer countries to more developed countries to find work. 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). Is globalization really good for public health? Labont, R., Schrecker, T., Packer, C., & Runnels, V. One may think about unhealthy conditions of an urban area such as environmental degradation, air and water pollution, higher crime rates, and stress which reduce life expectancy. According to regression results, per capita income, literacy rate, and lower fertility are important determinants of life expectancy while living in a tropical area decreasing it. They also used average years of education, urban population, the number of physicians, and nutrition as control variables and the effect of economic globalization was still positive and significant. Editor of. Ha, E. (2012). Is democracy good for health? This index has been used in previous literature as a proxy of SDG17 (Saint Akadiri 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. Barlow, R., & Vissandjee, B. Instead of only selling products in their country a business can expand to other regions boosting sales and in the process making more money. 2020). The globalization variables are between 0100, and 100 refers to the highest globalization level. As the literature is divided into two parts about the effects of globalization on human well-being, fresh evidence via robust estimation methods is required in order to provide proper policy implications. Therefore, the positive impact of globalization on health first emerged with its positive effects on economic growth (Labont et al. As pointed out by Swedish anthropologist Ulf Hannerz, this group advocates a view of global culture based not on the replication of uniformity but on the organization of diversity. Often promoting this view are nongovernmental organizations (NGOs) that lead efforts to preserve cultural traditions in the developing world. Gygli, S., Haelg, F., Potrafke, N., & Sturm, J. E. (2019). In addition to positive aspects globalization in this day also exist some hidden risks. The 17 Sustainable Development Goals announced by the United Nations are important guides for the development processes of developing countries. Cohen, M. S., Chen, Y. Q., McCauley, M., Gamble, T., Hosseinipour, M. C., Kumarasamy, N., & Godbole, S. V. (2011). 2014). By sharpening such identities, these NGOs have globalized the movement to preserve indigenous world cultures. Increasing the social welfare level is a complex process that depends on economic and non-economic factors. The effects of globalization on growth were mostly driven by free trade, international specialization, technology transfers, knowledge spillovers, and competitive markets. The results of OLS estimates show that globalization leads to inequality, and therefore, it reduces health performance in terms of life expectancy and infant mortality. Deaton, A. The current version of the data published by the Swiss Economic Institute is revised by Gygli et al. When you reach out to him or her, you will need the page title, URL, and the date you accessed the resource. If the calculated LM statistic is below the critical value, the null of cointegration will be accepted. Or, Z. Today, development is no longer a process that can be realized through policies implemented by governments alone. Omissions? (2004). Since the start of civilization, people have traded goods with their neighbors. Our empirical work also supports the evidence of Bergh and Nilsson (2010) in terms of positive effect of economic globalization on life expectancy. Globally, HIV, tuberculosis, and malaria targets have been met. Science of The Total Environment, 708, 134653. (1999). However, it was emphasized that some sub-goals should be realized in order to reach this goal. 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. . Empirical results show that people living in democracies enjoy better health conditions such as longer life expectancy, better maternal health, and lower child mortality. American Economic Review, 96(2), 313318. 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. Social globalization enables people in very remote areas of the world to communicate with each other, while political globalization forces governments to be transparent about infectious diseases. Another group stems from the rise of a transnational workforce. CAFE Research Paper, (13.15). There are approaches known as the unequal exchange that globalization increases inequality among countries and that developed countries are more profitable from the globalization process (Love, 1980). Because of its importance, health-related goals have an important place both among the Millennium Development Goals (MDGs) and the Sustainable Development Goals (SDGs) announced by the United Nations. Please select which sections you would like to print: Fairbank Professor of Chinese Society and Professor of Anthropology, Harvard University. Some observers argue that a rudimentary version of world culture is taking shape among certain individuals who share similar values, aspirations, or lifestyles. In conclusion, no contradiction was found between SDG3 and SDG17 in those countries. Trade openness is one of the most important dimensions of globalization. Journal of applied econometrics, 22(2), 265312. A bias-adjusted LM test of error cross-section independence. The result is a smaller, more connected world. The null and alternative hypothesis for both test statistics; \({H}_{0}\): No cross-sectional dependence exist; \({H}_{1}\): Cross-sectional dependence exist. If the null of no cross-sectional dependence is rejected, second-generation methods that assume cross-sectional dependence should be used in order to provide unbiased and consistent estimation results. Bai, J., & Kao, C. (2006). 2022. The determinants of mortality. The result is more jobs in countries where jobs are needed, which can have a positive effect on the national economy and result in a higher standard of living. The KOF globalisation indexrevisited. GlobalizationPositive or Negative? This study provides several contributions to previous literature. https://kof.ethz.ch/en/forecasts-and-indicators/indicators/kof-globalisation-index.html (Access Date: December, 2019). Therefore, estimators assume parameter homogeneity are used in our analysis. Advances in communication enable businesses to identify opportunities for investment. In our study, while globalization is used as a proxy indicator of global cooperation, democracy is an indicator of cooperation between societies and governments. Provided by the Springer Nature SharedIt content-sharing initiative, Over 10 million scientific documents at your fingertips, Not logged in Gives Access to a Larger Market Through globalization countries and companies have access to a bigger consumer base. Beck, T., Maimbo, S. M., Faye, I., & Triki, T. (2011). According to Freedom Houses list of electoral democracies, the countries without electoral democracy are mostly the low-income countries in the Middle East, North Africa, Sub-Saharan Africa, and Southeast Asia (Freedom House 2019). Therefore, it is seen that SDG3 and SDG17 targets are compatible with each other. POSITIVE IMPACTS OF GLOBALIZATION 1. Cambridge: National Bureau of Economic Research. Efficient inference in a random coefficient regression model. Their analysis includes annual data from 168 countries covering the period 19602010. In this study, the effects of globalization and democracy on life expectancy are empirically investigated in low-income countries. (2008) bias-adjusted LM test. It has been observed in the literature that possible contradictions between these goals are ignored. As a result, the positive effects are visible, since global competition leads to products of high quality. Models 1, 2, 3, and 4 represent the estimations with overall, economic, social, and political globalization indexes, respectively. 1. At this point, the literature is divided into two parts. Google Scholar. Owen, A. L., & Wu, S. (2007). Social scientists have identified the central aspects of globalization as interconnection, intensification, time-space distanciation (conditions that allow time and space to be organized in a manner that connects presence and absence), supraterritoriality, time-space compression, action at a distance, and accelerating interdependence. The resulting spread of slavery demonstrates that globalization can hurt people just as easily as it can connect people.The rate of globalization has increased in recent years, a result of rapid advancements in communication and transportation. This integration has both positive and negative effects. Department of Economics, Faculty of Economics and Administrative Sciences, Hatay Mustafa Kemal University, Hatay, Turkey, Arif Eser Guzel,Unal Arslan&Ali Acaravci, You can also search for this author in In this sense, it can be said that the evidence we found for low-income countries is in line with the author's evidence. (2015) examined the effects of globalization and democracy on child health in their panel data analysis for 70 developing countries covering the period 19702009. Negative Aspects of Globalization Outsourcing, while it provides jobs to a population in one country, takes away those jobs from another country, leaving many without opportunities. In this study, we determined the number of common factors via the Bayesian information criterion (BIC) as follows. Indian-born anthropologist Arjun Appadurai has studied English-speaking professionals who trace their origins to South Asia but who live and work elsewhere. Positive effects of Globalisation. In economics, globalization can be defined as the process in which businesses, organizations, and countries begin operating on an international scale. Free trade opportunities between countries help avoid business complications. Bergh, A., & Nilsson, T. (2010). Health is one of the most important indicators of social welfare. Pesaran, M. H. (2007). Income distribution and life expectancy: A critical appraisal. While every effort has been made to follow citation style rules, there may be some discrepancies. (2019). They circulate in a social world that has multiple home bases, and they have gained access to a unique network of individuals and opportunities.
positive and negative effects of social globalization
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