A Rising Tide Lifts All Boats? A Case of Economic Globalization

This article investigates the relationship between economic globalization and economic growth across the globe from 1984 to 2016, using the application of fixed effects and random effects modelling. The empirical findings exhibit that economic globalization has had a positive impact on growth at large but different regions of the world have been affected by this integration differently. Trade globalization has benefitted high and middle-income countries but has failed to transfer the benefits to poorer countries. On the other hand, financial globalization has not had an impact as significant as trade globalization. It is suggested that the process of globalization should be managed differently in different countries.