However, in 19 of 99 countries, globalization increases public health performance. 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. Cambridge: National Bureau of Economic Research. (2019). In general, globalization decreases the cost of manufacturing. Challenges to national sovereignty and identity, Anti-globalism movements and the Internet, Borrowing and translating popular culture, https://www.britannica.com/science/cultural-globalization, National Center for Biotechnology Information - PubMed Central - Cultural syndromes in the era of globalization, Social Science LibreTexts - Globalization. Patterson and Veenstra (2016) concluded that electoral democracies provide better health conditions compared to other countries. Pesaran (2006) suggested a factor modeling approach to solve the cross-sectional dependency problem. (2008) bias-adjusted LM test. The impact of economic, social, and political globalization and democracy on life expectancy in low-income countries: are sustainable development goals contradictory? 1229). Compared to theoretical discussions, previous literature provides a lack of empirical evidence. Consumers also have access to a wider variety of goods. 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. Globalization, the positive and negative effects of Globalization. 1 are heterogeneous. Therefore, Westerlund (2007) suggested a bias-adjusted estimator (BA-OLS) following the methodology of Bai and Kao (2006) except in the context of determining the number of common factors. In order to achieve SDG3, economic, social, and political integration between countries should be encouraged and democratic institutions should be improved. In democracies, governments have an obligation to account to citizens for what purposes the resources were used. When these countries are examined, it is seen that 14 of them are countries in the low and lower-middle income groups. After the deadline of MDGs, the United Nations has announced 17 SDGs, and Good Health and Well-Being takes its place as the third goal. The following are some of the advantages and disadvantages of globalization. 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. Effects of Globalization - The Balance Since the start of civilization, people have traded goods with their neighbors. 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. The stata journal, 6(4), 482496. The results are shown in Table 4. Thus, the attention of politicians can be attracted to the problems of the poor. Fixed effects estimation results reveal a significant negative relationship between public health expenditure and women's premature death. Increasing Cultural Diversity. As shown in Fig. BMJ, 329(7480), 14211423. Gives Access to a Larger Market Through globalization countries and companies have access to a bigger consumer base. Globalization and health: Pathways, evidence and policy. To fill this gap, our work provides second-generation estimations. Alam, M. S., Raza, S. A., Shahbaz, M., & Abbas, Q. The Cross-sectionally Augmented DickeyFuller (CADF) unit root test developed by Pesaran (2007) is based on that factor modelling approach. By the beginning of the 21st century, institutions such as Cultural Survival were operating on a world scale, drawing attention to indigenous groups who are encouraged to perceive themselves as first peoplesa new global designation emphasizing common experiences of exploitation among indigenous inhabitants of all lands. Our editors will review what youve submitted and determine whether to revise the article. Efficient inference in a random coefficient regression model. 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. Dollar, D. (2001). Their results show that globalization, financial development, and economic growth affect life expectancy positively in 14 of 16 Sub-Saharan African countries. 2006). The journal of Politics, 74(2), 541557. (2011). (2004). Determinants of life expectancy in developing countries. Democracy can be considered as another determinant of life expectancy. (2004) analyzed the impact of democracy on health utilizing political rights data of 170 countries. All rights reserved. The main question of our study is to determine whether the problem of low life expectancy in low-income countries is due to the low levels of globalization and weak political institutions in these countries. Part of. In 2013, a textile factory building collapsed, killing more than 1,100 workers. To answer this question, the role of economic, social, and political globalization and democracy in life expectancy in those countries is empirically investigated. 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. Hu, F. B. Environ Dev Sustain 23, 1350813525 (2021). According to the United Nations, achieving sustainable development goals requires global cooperation and partnership. Globalization and poverty (No. The relationship also occurs for men, while GDP per capita dropped from the regression model due to high collinearity. Empirical results show democracy has a significant positive impact on life expectancy and it reduces infant mortality. & Acaravci, A. In the selection of panel data estimation methods, the results of those preliminary analysis are taken into account. Therefore, the main purpose of this study is to investigate whether two sustainable development goals (SDGs) of the UN are contradictory or supporting each other in low-income countries. According to the results, the globalization index and its subcomponents such as economic, social, and political globalization are important instruments to achieve a healthier society. CAS Welander et al. Another example of this kind of diversity of Globalization has enabled the exchange and spread of cultural diversity around the world, such as food, music and art. Those studies are mostly addressed the relationship between SDG7, SDG8, SDG13, and SDG17 (Zafar et al. Globalization, human rights, and the social determinants of health. https://doi.org/10.1007/s10668-021-01225-2, DOI: https://doi.org/10.1007/s10668-021-01225-2. Health in an age of globalization (No. Named after the Swiss town that began hosting annual meetings of the World Economic Forum in 1971, these Davos insiders share common beliefs about individualism, democracy, and market economics. 1, X refers to the KOF Globalization Index developed by Dreher (2006). The human rights approach focuses on how globalization affected disadvantaged people worldwide (Chapman 2009). 6 Pros and Cons of Globalization in Business to Consider However, this assumption is hard to satisfy due to rising economic, social, and political integration between countries. 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. Due to high collinearity, the effects of different types of globalization are analyzed separately. The changes created by social and political globalization play a major role in this emergence. 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. 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. The hope is that increased global trade will lead to more competition, which will spread wealth more equally. Westerlund and Edgerton (2007) suggested following LM test in order to test the null of cointegration. 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. Ulucak, R., & Bilgili, F. (2018). This appears, however, to be an overstatement of the phenomenon. In the estimation of the model, the panel data analysis methods are used. By increasing the international exchange of goods, technological advances, and information, globalization increases economic development for any country participating in the global economy. The Future of Jobs Report 2023 | World Economic Forum As part of the North American Free Trade Agreement (NAFTA), U.S. automobile companies relocated their operations to Mexico, where labor costs are lower. The world leaders with the support of international funding organizations announced the Millennium Declaration in September 2000 at the United Nations Headquarters in New York. In the context of sustainable development goals, our results show that there is no conflict between SDG3 (good health and well-being) and SDG17 (partnerships for the goals). 2011). Pesaran, M. H., & Yamagata, T. (2008). As a result, the positive effects are visible, since global competition leads to products of high quality. Healthy people have higher opportunities to earn a higher income than unhealthy people. Therefore, economic development and improvement of health conditions represent a two-way process. Economic Modelling, 37, 386394. (2008) bias-adjusted LM tests are given in Table 1. Another negative effect of globalization is trade. The Review of International Organizations, 14, 543574. Patterson, A. C., & Veenstra, G. (2016). A bias-adjusted LM test of error cross-section independence. Rao, B. Menyah, K., Nazlioglu, S., & Wolde-Rufael, Y. Life expectancy at birth data is provided by World Bank (2019)World Development Indicators. According to results, per capita income, literacy rate, per capita health expenditure, and urbanization have no significant impact on life expectancy. Zafar, M. W., Shahbaz, M., Hou, F., & Sinha, A. Impact of globalization in south africa. The Impact of Globalization 2014). Poverty is detrimental to access to health services. (2019) investigated the impact of globalization, financial development, and economic growth on life expectancy. (2016). Previous works mostly provide global evidence, while only a few studies focus on less developed countries. The globalization of cultural subgroups is not limited to the upper classes. Provides Cheaper Goods for Consumers 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. 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. In order to solve the health problems of the poor, people should draw the attention of the government. The globalization variables are between 0100, and 100 refers to the highest globalization level. Policy makers should remove the barriers on globalization, and they should promote participation on international organizations and publicprivate and civil society partnerships. One should also notice that wider markets and higher returns are important factors that motivate entrepreneurs. These SDGs are Good Health and Well-Being (SDG3) and Partnerships for the Goals (SDG17). Economic Modelling, 28(3), 795805. Also, the child mortality rate was reduced by 53% and maternal mortality by 43% (WHO 2016). A., Olasehinde-Williams, G., & Etokakpan, M. U. 2019b). If no button appears, you cannot download or save the media. 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. (2019). However, we should consider other possibilities in the context of spreading communicable diseases. 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. PDF Globalization Positive or Negative? 4-6 - Province of Manitoba Trade openness is one of the most important dimensions of globalization. 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. If you have questions about licensing content on this page, please contact [email protected] for more information and to obtain a license. These results are contradictory to positive views on the role of globalization in public health. (2000). After this, the long-run coefficients will be estimated using the continuous-updated fully modified (CUP-FM) estimator developed by Bai and Kao (2006) and Bias-adjusted OLS estimator developed by Westerlund (2007). Positive and negative aspect of globalization in tourism 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). This aspect of globalization shows that not all change is good because although foreign trade has been created and expanded allowing the exchange of goods throughout the world, it is also the cause of the increase in tariff rates in many developing countries. Social Indicators Research, 129(3), 11551170. It is an important instrument in the suppression of the inequality created by economic globalization. (2006). Political Research Quarterly, 54(3), 509529. Effectively, this means that workers in the developed world must compete with lower-cost markets for jobs; unions and workers may be unable to defend against the threat of corporations that offer the alternative between lower pay or losing jobs to a supplier in a less expensive labor market.The situation is more complex in the developing world, where economies are undergoing rapid change. https://kof.ethz.ch/en/forecasts-and-indicators/indicators/kof-globalisation-index.html (Access Date: December, 2019). Dreher, A., & Gaston, N. (2008). Furthermore, GDP per capita and the proportion of white-collar workers reduce premature death for both men and women, while alcohol consumption increases it. In addition, democracy improves child health and it also increases the beneficial effects of globalization on child health. Diabetes Care, 34(6), 12491257. \({\stackrel{\sim }{\Delta }}_{adj}\) is a bias-adjusted version of \(\stackrel{\sim }{\Delta }\). Part of Springer Nature. At this point, the literature is divided into two parts. Has globalization increased inequality? New York: Knopf. 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. 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. Localisation opportunities provide direct benefits for developing countries to . POSITIVE IMPACTS OF GLOBALIZATION 1. Book 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. Harrison, A. According to the results, the null of homogeneity is accepted at %1 in all models. The results show that the null of cointegration is accepted for all models. Globalization - Overview, Pros and Cons, and Tech Impacts 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). Ha, E. (2012). Shahbaz, M., Shafiullah, M., & Mahalik, M. K. (2019). The role of political globalization on this point is forcing governments to adopt global institutions. It also offers broader opportunities for entrepreneurs and paves the way for innovation (Grossman and Helpman 2015: 101). As expected, poverty rates significantly reduced in the last two decades because of the integration of developing economies to global markets (Harrison 2006). 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. In addition to positive aspects globalization in this day also exist some hidden risks. Provided by the Springer Nature SharedIt content-sharing initiative, Over 10 million scientific documents at your fingertips, Not logged in According to results, the null of unit root is accepted for all variables, while calculated CIPS statistics of first-differenced variables exceed 1% critical value. (1999). 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. Empirical results show that people living in democracies enjoy better health conditions such as longer life expectancy, better maternal health, and lower child mortality. The United Nations (2019). 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 Does Commercialization And Technology Influence Popular Culture,
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