These days we experience the coronavirus epidemic and we see once again the importance of globalization. As cultures advanced, they were able to travel farther afield to trade their own goods for desirable products found elsewhere. In Eq. The globalization variables are between 0100, and 100 refers to the highest globalization level. As part of the North American Free Trade Agreement (NAFTA), U.S. automobile companies relocated their operations to Mexico, where labor costs are lower. Is trade good for your health? Such conflicts between sustainable development goals in the literature have mostly focused on the impact of economic growth and globalization on the sustainable environment (Ulucak and Bilgili 2018; Zafar et al. Sen, A. Furthermore, the growth in the number of temporary workers has brought adverse effects to. Politicians who have never tasted poverty do not have the urge to take action against the problems of the poor at the right time. Globalization is affecting every facet of our lives, positively and negatively. The ignorance of cross-sectional dependence results in biased and inconsistent estimates and wrong inferences (De Hoyos and Sarafidis 2006; Chudik and Pesaran 2013). 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 will eventually make human experience everywhere essentially the same. This approach is simply based on adding cross-sectional averages to the models as proxies of unobserved common factors. Due to extensive R&D investments and scientific activities, developed countries can find new treatment methods and supply advanced drugs. Pesaran (2006) suggested a factor modeling approach to solve the cross-sectional dependency problem. Positive and negative consequences of globalisation Some would argue that globalisation has spread wealth and led to the improvement of standards of living in newly-industrialised countries. Cross-sectional dependency simply refers to the situation when the shock that occurs in one country affects other countries as well. (Eds.). The null and alternative hypothesis for both test statistics; \({H}_{0}\): No cross-sectional dependence exist; \({H}_{1}\): Cross-sectional dependence exist. It requires cooperation between governments and societies. 2012). Accounting for contribution of trade openness and foreign direct investment in life expectancy: The long-run and short-run analysis in Pakistan. Econometric analysis of panel data. Text on this page is printable and can be used according to our Terms of Service. If you have questions about licensing content on this page, please contact ngimagecollection@natgeo.com for more information and to obtain a license. Has globalization increased inequality? It also offers broader opportunities for entrepreneurs and paves the way for innovation (Grossman and Helpman 2015: 101). The impact of globalization and financial development on environmental quality: Evidence from selected countries in the Organization for Economic Co-operation and Development (OECD). It is also important to examine this relationship in low-income countries since they still suffer from low levels of life expectancy, less adaptation to globalization, and poor democratic institutions compared to other income groups. Provides Cheaper Goods for Consumers Since the start of civilization, people have traded goods with their neighbors. 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. Some observers argue that a rudimentary version of world culture is taking shape among certain individuals who share similar values, aspirations, or lifestyles. Pesaran, M. H. (2007). volume23,pages 1350813525 (2021)Cite this article. Gives Access to a Larger Market Through globalization countries and companies have access to a bigger consumer base. Guzel, A.E., Arslan, U. Health is one of the most important indicators of social welfare. 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 . 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. World Development Indicators. The impact of income inequality, environmental degradation and globalization on life expectancy in Pakistan: An empirical analysis. Put simply, globalization is the connection of different parts of the world. 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. It employs as many as four million people, but the average worker earns less in a month than a U.S. worker earns in a day. Rao, B. 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. One of the most critical negative effects of globalization deals with the gap between social layers ("Globalization," 2015). Pesaran and Yamagata (2008) proposed a method to examine slope heterogeneity in panel data analysis based on the Swamy (1970)s random coefficient model. Bulletin of the world Health Organization, 79, 827833. Indeed, the working conditions of people at some points in the supply chain are deplorable. (2019). First, increased urban population and sedentary lifestyles may enhance prepared food consumption and reduce daily movements which result in rising obesity and diabetes (Hu 2011). However, we must make proper use of every available tool globalization has given us to improve our lives and society. Although different cultures from around the world are able to interact, they begin to meld, and the contours and individuality of each begin to fade. Polity IV Project: Political regime characteristics and transitions, 18002002: Dataset users manual. In this context, the determination of the variables that will enable the achievement of the goal of a healthier society is especially important in explaining the economic differences between developing countries and developed countries. BMJ, 329(7480), 14211423. The results given in Table 1 show that the null of no cross-sectional dependence is rejected at 1% according to both \({CD}_{LM}\) and \({LM}_{adj}\) test statistics in all variables. 2019b). The dynamics of financial development, globalisation, economic growth and life expectancy in sub-Saharan Africa. Efficient inference in a random coefficient regression model. Competition Competition in the market is largely due to globalization. It affects our economies, education, culture, businesses, and personal lives. Pesaran, M. H., Ullah, A., & Yamagata, T. (2008). Thus, unhealthy but traditional consumption patterns and lifestyles may change. Therefore, it is seen that SDG3 and SDG17 targets are compatible with each other. To fill this gap, our work provides second-generation estimations. In addition, ignoring the cross-sectional dependence results in inconsistent estimations. The audio, illustrations, photos, and videos are credited beneath the media asset, except for promotional images, which generally link to another page that contains the media credit. Increasing Cultural Diversity. According to the OLS estimation results, improving democratic institutions increases life expectancy and reduces child and adult mortality rates. This study guide looks at the reasons for globalisation and its positive and negative influences. It has been observed in the literature that possible contradictions between these goals are ignored. According to results, per capita income, literacy rate, per capita health expenditure, and urbanization have no significant impact on life expectancy. Any change has winners and losers, and the people living in communities that had been dependent on jobs outsourced elsewhere often suffer. Saint Akadiri, S., Alola, A. Prevention of HIV-1 infection with early antiretroviral therapy. Finally, GDP per capita growth improves health status of countries. The globalization of cultural subgroups is not limited to the upper classes. The journal of Developing areas, 41, 185204. Book Our dataset is covering the period 19702017. You cannot download interactives. Democracy also refers to accountability levels of governments. The null and alternative hypothesis for both test statistics is given below. Westerlund and Edgerton (2007) suggested following LM test in order to test the null of cointegration. New York: Wiley. (2006). The results are shown in Table 4. The Silk Road, an ancient network of trade routes used between Europe, North Africa, East Africa, Central Asia, South Asia, and the Far East, is an example of early globalization. While the authors found no significant impact of social and political globalization on life expectancy, our results show that life expectancy is positively associated with both social and political globalization. BMJ, 311(7015), 12821285. Australian Economic Papers, 58(4), 444479. (2015) examined the effects of globalization and democracy on child health in their panel data analysis for 70 developing countries covering the period 19702009. The source of this problem encountered in panel data analysis is the economic, financial, and political integration among countries (Menyah et al. The second group mostly focuses on the benefits of free trade, capital mobility, and technology transfers (Rao and Vadlamannati 2011). In this study, the effects of globalization and democracy on life expectancy are empirically investigated in low-income countries. Models 1, 2, 3, and 4 represent the estimations with overall, economic, social, and political globalization indexes, respectively. A., Olasehinde-Williams, G., & Etokakpan, M. U. The calculation of the test statistic of Swamys model is given in Eq. Owen and Wu (2007) found a positive relationship between trade openness and health outcomes using a panel of 219 countries. In general, critics blame the pressures of globalization for encouraging an environment that exploits workers in countries that do not offer sufficient protections.Studies also suggest that globalization may contribute to income disparity and inequality between the more educated and less educated members of a society. However, according to Kabir (2008), people living in an urban area can benefit from improved medical care, easy access to pharmacy, and to the hospitals that use higher technology. Is globalization really good for public health? According to Bai and Kao (2006), CUP-FM estimator is robust under cross-sectional dependence. The test statistic obtained from Swamys model is improved by Pesaran et al. 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 \(\Delta {x}_{it}^{^{\prime}}\). It is a consequence of cross-border business. Safaei (2006) also investigated the impact of democracy on life expectancy and adult and child mortality rates with the data of 32 autocratic, 13 incoherent, and 72 democratic countries. While every effort has been made to follow citation style rules, there may be some discrepancies. Good for living? A reinvestigation of EKC model by ecological footprint measurement for high, middle and low income countries. MPRA Working Paper, No. In economics, globalization can be defined as the process in which businesses, organizations, and countries begin operating on an international scale. 1 are heterogeneous. Another finding in this study shows that health expenditures in those countries failed to increase life expectancy. In our analysis, we used subcomponents of globalization index such as economic (EC), social (SOS), and political (POL) globalization in addition to overall globalization (GLB). Provided by the Springer Nature SharedIt content-sharing initiative, Over 10 million scientific documents at your fingertips, Not logged in In contrast, the pessimists show that globalization is quite uneven in its impact and gives rise to negative counter-effects on the previously protected sectors, the marginalisation of entire regions of the world economy and possible increases in within-country income inequality (WCII). The stata journal, 6(4), 482496. Globalization has led to increases in standards of living around the world, but not all of its effects are positive for everyone. 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. Individuals with higher incomes can benefit from better nutrition and access to health services. This appears, however, to be an overstatement of the phenomenon. (1970). The migrant labourers may leave their families and live temporarily in another country, thus disrupting the family and social fabric of their home . 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. Shahbaz, M., Shafiullah, M., & Mahalik, M. K. (2019). If you have questions about how to cite anything on our website in your project or classroom presentation, please contact your teacher. One such cadre, according to political scientist Samuel Huntington in The Clash of Civilizations (1998), comprises an elite group of highly educated people who operate in the rarefied domains of international finance, media, and diplomacy. From nonrenewable to renewable energy and its impact on economic growth: The role of research & development expenditures in Asia-Pacific Economic Cooperation countries. However, it was emphasized that some sub-goals should be realized in order to reach this goal. Or, Z. Globalization is most often used in an economic context, but it also affects and is affected by politics and culture. This method is an augmented form of Augmented DickeyFuller (ADF) regression with lagged cross-sectional average and its first difference to deal with cross-sectional dependence (Baltagi, 2008: 249). According to the results, the null of homogeneity is accepted at %1 in all models. The impact of economic, social, and political globalization and democracy on life expectancy in low-income countries: are sustainable development goals contradictory?. Barlow, R., & Vissandjee, B. Pesaran MH (2004) General diagnostic tests for cross section dependence in panels. Our results confirms the findings of Owen and Wu (2007), Ali and Audi (2016), and Shahbaz et al. According to results, democracy has a positive and significant effect on life expectancy at birth and it also reduces child mortality. In addition, in the error terms obtained from models 1, 2, 3, and 4 the null of no cross-sectional dependence is rejected at 1%. Therefore, estimators assume parameter homogeneity are used in our analysis. However, some countries still suffer from poor adaption to global markets. The changes created by social and political globalization play a major role in this emergence. 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. Pesaran, M. H. (2006). The following are some of the advantages and disadvantages of globalization. (2004). The effects of globalization on growth were mostly driven by free trade, international specialization, technology transfers, knowledge spillovers, and competitive markets. Due to the high cost of advanced drugs as in the case of antiretroviral therapy, it should be accepted that people in low-income countries will have trouble accessing the drugs (Buss 2002). (2016). Globalization has enabled the exchange and spread of cultural diversity around the world, such as food, music and art. \({\stackrel{\sim }{\Delta }}_{adj}\) is a bias-adjusted version of \(\stackrel{\sim }{\Delta }\). Zafar, M. W., Shahbaz, M., Hou, F., & Sinha, A. The effects of globalization on growth were mostly driven by free trade, international specialization, technology transfers, knowledge spillovers, and competitive markets. A simple panel unit root test in the presence of cross-section dependence. There are a few studies that came with the conclusion that globalization rises inequality (Dreher and Gaston 2008; Ha 2012), but Bergh and Nilsson (2010) suggested a different perspective. Welander, A., Lyttkens, C. H., & Nilsson, T. (2015). Gelleny, R. D., & McCoy, M. (2001). In our study, while globalization is used as a proxy indicator of global cooperation, democracy is an indicator of cooperation between societies and governments. The main problem of economics is to increase economic development and social welfare. World Bank (2019). Following the European exploration of the New World, globalization occurred on a grand scale; the widespread transfer of plants, animals, foods, cultures, and ideas became known as the Columbian Exchange. By sharpening such identities, these NGOs have globalized the movement to preserve indigenous world cultures. The KOF globalisation indexrevisited. Globalization can benefit a country's economy in many ways: Increases economic growth. Arif Eser Guzel. But no significant relationship was found between social globalization, political globalization, and life expectancy. In their study, they used life expectancy at birth and child mortality variables for 146 countries as indicators of health outcomes. The International journal of health planning and management, 31(4), 511536. (2008) bias-adjusted LM test. Economic Modelling, 37, 386394. All variables have a unit root, and their first differences are stationary (\({I}_{1})\). At the same time, democratic institutions are not developed. 1, significant differences exist between developing countries and developed countries in achieving health-related goals. This means that companies can offer goods at a lower price to consumers. The role of electricity consumption, globalization and economic growth in carbon dioxide emissions and its implications for environmental sustainability targets. 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). 1. Freedom House (2019). Receiving an opportunity to extend their businesses and cooperate with foreign partners, people with high incomes obtain an opportunity to increase it even more. Gygli, S., Haelg, F., Potrafke, N., & Sturm, J. E. (2019). Because of the pressure on the government about human rights, disadvantaged people are becoming able to meet their basic human needs. They circulate in a social world that has multiple home bases, and they have gained access to a unique network of individuals and opportunities. Owen, A. L., & Wu, S. (2007). Journal of Econometrics, 142(1), 5093. Therefore, the positive impact of globalization on health first emerged with its positive effects on economic growth (Labont et al. 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. National Geographic Society is a 501 (c)(3) organization. The results of homogeneity tests developed by Pesaran and Yamagata (2008) are given in Table 2. In the analysis of unit root, constant and trend terms are both considered at level, while only constant term is added at first difference. The estimations do not take this process into account may cause inconsistent results. One should also notice that wider markets and higher returns are important factors that motivate entrepreneurs. De Hoyos, R. E., & Sarafidis, V. (2006). Globalization, government ideology, and income inequality in developing countries. 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. Globalization and disease: In an unequal world, unequal health! Therefore, governments' tendency to violate human rights in order to maintain their power becomes lesser. In electoral democracies, people living in poverty and suffering from health problems can easily attract the attention of policymakers compared to autocracies. Traditional panel data methods are based on the assumption that no cross-sectional dependence exists among cross section units. Sustainable development from millennium 2015 to Sustainable Development Goals 2030. Advantages of Globalization 1. World Development, 38(9), 11911203. First, it can be observed that previous studies are mostly based on traditional estimation methods. Globalization is a process of growing exchange, interaction and integration between people, governments and private organizations across the globe. The Millennium Development Goals (MDGs) consist of 8 goals, 21 targets, and 60 related indicators covering a wide spectrum of development areas such as End Poverty and Hunger (MDG 1), Universal Education (MDG 2), Gender Equality (MDG 3), Child Health (MDG 4), Maternal Health (MDG 5), Combat HIV/AIDS (MDG 6), Environmental Sustainability (MDG 7), and Global Partnership (MDG 8). As we see, three of the goals are directly associated with the health status of the people. Therefore, partnerships for goals has taken its place as the 17th sustainable development target. Science of The Total Environment, 708, 134653. The GDP per capita is also used as a control variable. Life expectancy at birth indicates the number of years a newborn infant would live if prevailing patterns of mortality at the time of its birth were to stay the same throughout its life. In the estimation of the model, the panel data analysis methods are used. Besley, T., & Kudamatsu, M. (2006). In the deadline of 2015, according to Health in 2015: From MDGs to SDGs report of the World Health Organization (WHO), there are improvements in health-related targets such as child health, maternal health, and combat with HIV/AIDS. Harrison, A. Even HIV-infected people can survive with antiretroviral therapy, and it also reduces sexual transmission of the infection (Dollar 2001; Cohen et al. Previous works mostly provide global evidence, while only a few studies focus on less developed countries. Economics Letters, 97(3), 185190. Westerlund, J. Due to high collinearity, the effects of different types of globalization are analyzed separately. Environmental science and pollution research, 26(13), 1324613262. Furthermore, GDP per capita and the proportion of white-collar workers reduce premature death for both men and women, while alcohol consumption increases it. It is an important instrument in the suppression of the inequality created by economic globalization. Google Scholar. Kabir, M. (2008). Although homogenizing influences do indeed exist, they are far from creating anything akin to a single world culture. The positive impact of globalization can be seen while connecting production technology. As a dummy variable, living in Sub-Saharan Africa is another factor that reduces life expectancy due to communicable diseases like HIV, malaria, etc. Another negative effect of globalization is trade. 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. While globalization has been used as an indicator of the partnership between countries, democracy has been used as an indicator of accountability and cooperation between governments and societies. Bergh and Nilsson (2010) used a panel of 92 countries in the period 19702005 to investigate the relationship between globalization and life expectancy. 4. In order to achieve SDG3, economic, social, and political integration between countries should be encouraged and democratic institutions should be improved. Globalization can play an important role in improving the health conditions of low-income countries to the extent that it can provide these linkages. Empirical results show democracy has a significant positive impact on life expectancy and it reduces infant mortality. Globalization, human rights, and the social determinants of health. 2020). Pesaran, M. H., & Yamagata, T. (2008). They are said to follow a recognizable lifestyle, are instantly identifiable anywhere in the world, and feel more comfortable in each others presence than they do among their less-sophisticated compatriots. Following this, Besley and Kudamatsu (2006) investigated the nexus between democracy and health outcomes utilizing panel data from the 1960s to the 2000s. 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. Determinants of health outcomes in industrialized countries: A pooled, cross-country, time-series analysis. 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. Environment, Development and Sustainability, $${lex}_{it}={\beta }_{1i}+{\beta }_{2}{X}_{it}+{\beta }_{5}{dem}_{it}+{\beta }_{6}{gdp}_{it}+{\varepsilon }_{it}$$, $${\text{CD}}_{{{\text{LM}}}} = \left( {\frac{1}{{N\left( {N - 1} \right)}}} \right)^{{\frac{1}{2}}} \sum\limits_{{i = 1}}^{{N - 1}} {\sum\limits_{{j = i + 1}}^{N} {(T\hat{\rho }_{{ij}} ^{2} - 1)} }$$, $${LM}_{adj}=\sqrt{\frac{2}{N(N-1)}}\sum_{i=1}^{N-1}\sum_{j=i+1}^{N}\frac{\left(T-k\right){\widehat{\rho }}_{ij}^{2}-{\mu }_{Tij}}{{V}_{Tij}}$$, $$\widehat{S}=\sum_{i=1}^{N}\left({\stackrel{\sim }{\beta }}_{i}-{\overbrace{\beta}}_{WFE}\right)\frac{{x}_{i}^{^{\prime}}{M}_{T}{x}_{i}}{\stackrel{\sim }{{\sigma }_{i}^{2}}}\left({\stackrel{\sim }{\beta }}_{i}-{\overbrace{\beta }}_{WFE}\right)$$, $$\stackrel{\sim }{\Delta }=\sqrt{N}\left(\frac{{N}^{-1}\stackrel{\sim }{S}-k}{\sqrt{2k}}\right)$$, $${\stackrel{\sim }{\Delta }}_{adj}=\sqrt{N}\left(\frac{{N}^{-1}\stackrel{\sim }{S}-E({\stackrel{\sim }{Z}}_{it})}{\sqrt{Var({\stackrel{\sim }{Z}}_{it})}}\right)$$, \(Var\left({\stackrel{\sim }{Z}}_{it}\right)=2k(T-k-1)/T+1\), $${\Delta y}_{it}={\alpha }_{i}+{\rho }_{i}^{*}{y}_{i,t-1}+{d}_{0}{\stackrel{-}{y}}_{t-1}+{d}_{1}\Delta {\stackrel{-}{y}}_{t}+{\epsilon }_{it}$$, $${\Delta y}_{it}={\alpha }_{i}+{\rho }_{i}^{*}{y}_{i,t-1}+{d}_{0}{\stackrel{-}{y}}_{t-1}+\sum_{j=0}^{p}{d}_{j+1}\Delta {\stackrel{-}{y}}_{t-j}+\sum_{k=1}^{p}{c}_{k}\Delta {y}_{i,t-k}+{\epsilon }_{it}$$, $$CIPS=\frac{1}{N}\sum_{i=1}^{N}{CADF}_{i}$$, $${y}_{it}={\alpha }_{i}+{x}_{it}^{^{\prime}}{\beta }_{i}+{z}_{it}$$, $${z}_{it}={u}_{it}+{v}_{it} ,{v}_{it}= \sum_{j=1}^{t}{n}_{ij}$$, $${LM}_{N}^{+}=\frac{1}{N{T}^{2}}\sum_{i=1}^{N}\sum_{t=1}^{T}{\widehat{w}}_{i}^{-2}{S}_{it}^{2}$$, $${\widehat{\beta }}_{CUP}=\left[\sum_{i=1}^{N}\left(\sum_{i=1}^{T}{\widehat{y}}_{i,t}^{+}\left({\widehat{\beta }}_{CUP}\right){\left({x}_{i,t}-{\stackrel{\sim }{x}}_{i}\right)}^{^{\prime}}-T\left({\widehat{\lambda }}_{i}^{^{\prime}}\left({\widehat{\beta }}_{CUP}\right){\widehat{\Delta }}_{F\epsilon i}^{+}\left({\widehat{\beta }}_{CUP}\right)+{\widehat{\Delta }}_{\mu \epsilon i}^{+}\left({\widehat{\beta }}_{CUP}\right)\right)\right)\right]{\left[\sum_{i=1}^{n}\sum_{i=1}^{T}\left({x}_{i,t}-{\stackrel{\sim }{x}}_{i}\right){\left({x}_{i,t}-{\stackrel{\sim }{x}}_{i}\right)}^{^{\prime}}\right]}^{-1}$$, \(\hat{y}_{{i,t}}^{ + } = y_{{i,t}} - \left( {\lambda _{i} ^{\prime } \hat{\Omega }_{{F \in i}} + \hat{\Omega }_{{\mu \in i}} } \right)\hat{\Omega }_{{ \in i}}^{{ - 1}} {{\Delta }}x_{{i,t}}\), $$\widehat{k}=\mathrm{min}\left(IC\left(k\right)\right), 1 How Do I Register For Proofpoint Encryption,
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