World Development, 38(9), 11911203. 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. What Are the Effects of Globalization on the Environment? Gelleny and McCoy (2001) also claimed that integration among countries leads to political stability. (2006). Fixed effects estimation results reveal a significant negative relationship between public health expenditure and women's premature death. Consumers also have access to a wider variety of goods. (2008) bias-adjusted LM test. Estimation and inference in large heterogeneous panels with a multifactor error structure. (2006). In order to solve the health problems of the poor, people should draw the attention of the government. It also offers broader opportunities for entrepreneurs and paves the way for innovation (Grossman and Helpman 2015: 101). Owen and Wu (2007) found a positive relationship between trade openness and health outcomes using a panel of 219 countries. (2020). Their results show that globalization, financial development, and economic growth affect life expectancy positively in 14 of 16 Sub-Saharan African countries. 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. Economics Letters, 97(3), 185190. In general, globalization has been shown to increase the standard of living in developing countries, but some analysts warn that globalization can have a negative effect on local or emerging economies and individual workers.A Historical ViewGlobalization is not new. Also, the child mortality rate was reduced by 53% and maternal mortality by 43% (WHO 2016). 6 Pros and Cons of Globalization in Business to Consider Therefore, it is seen that SDG3 and SDG17 targets are compatible with each other. https://databank.worldbank.org/source/world-development-indicators (Access Date: December, 2019). Policy makers should remove the barriers on globalization, and they should promote participation on international organizations and publicprivate and civil society partnerships. International trade, capital flows, migration, technological transfer and cultural exchanges are some of the typical manifestations of this process. 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 Positive effects of Globalisation. 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), 1How Globalization Works: Pros and Cons of Globalization Google Scholar. 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. Knowledge sharing and technology transfer between nations have become easier. (2004) analyzed the impact of democracy on health utilizing political rights data of 170 countries. 1229). Globalization and growth. Journal of cleaner production, 188, 144157. These results support the evidence of Barlow and Vissandjee (1999), Or (2000), and Shahbaz et al. Review of International Economics, 15(4), 660682. Cohen, M. S., Chen, Y. Q., McCauley, M., Gamble, T., Hosseinipour, M. C., Kumarasamy, N., & Godbole, S. V. (2011). By sharpening such identities, these NGOs have globalized the movement to preserve indigenous world cultures. According to Bai and Kao (2006), CUP-FM estimator is robust under cross-sectional dependence. Pesaran, M. H. (2007). World Health Organization. GlobalizationPositive or Negative? Franco et al. 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. 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. As Deaton (2004) mentioned before, access to cheap and easy travel can increase the rate of spread of communicable diseases. There is a long-run relationship between life expectancy, globalization, democracy, and GDP per capita. (2000). Alam, M. S., Raza, S. A., Shahbaz, M., & Abbas, Q. CAS The Future of Jobs Report 2023 | World Economic Forum 1. In this sense, it can be said that the evidence we found for low-income countries is in line with the author's evidence. Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations. 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. The impact of economic, social and political globalization indexes is 0.013%, 0.011%, and 0.015% according to CUP-FM estimation results while 0.014%, 0.012%, and 0.017% according to both estimators, respectively. 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. Another study on the Pakistan case proposed by Alam et al. 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. 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. Buss, P. M. (2002). 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. Receiving an opportunity to extend their businesses and cooperate with foreign partners, people with high incomes obtain an opportunity to increase it even more. Canadian Journal of Development Studies/Revue canadienne dtudes du dveloppement, 20(1), 929. 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. These SDGs are Good Health and Well-Being (SDG3) and Partnerships for the Goals (SDG17). 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). Patterson and Veenstra (2016) concluded that electoral democracies provide better health conditions compared to other countries. Sen (1999) claimed that the instrumental role of democracy in solving problems is enabling people to express and support their claims. At this point, the literature is divided into two parts. 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. Determinants of health outcomes in industrialized countries: A pooled, cross-country, time-series analysis. 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. Chudik A, & Pesaran, MH (2013) Large panel data models with cross-sectional dependence: a survey. This study guide looks at the reasons for globalisation and its positive and negative influences. Finally, gdp is real GDP per capita (constant 2010 $) and it is provided from World Bank World Development Indicators. 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. This method is based on the following equation, where \({n}_{ij}\) is an independent and identically distributed process with zero mean and var(\({n}_{ij})\)=\({{\sigma }_{i}}^{2}\). Econometrica: Journal of the Econometric Society, 38, 311323. Efficient inference in a random coefficient regression model. They also suffer from bad health conditions such as low life expectancy, communicable diseases, and high mortality rates according to MDG indexes given above. 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. Social globalization also provides cultural integration among the worlds people, and it changes lifestyles and consumption patterns worldwide. Evidence from a new index of globalization. Negative Impacts Of Globalisation On Society - Edubirdie 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. 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 the estimation of the model, the panel data analysis methods are used. (2008) bias-adjusted LM test statistic. Positive And Negative Impacts Of Globalization On Culture Individuals living in countries with high per capita income are expected to have higher welfare and have a longer life expectancy (Judge, 1995). 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. Estimating cointegrated panels with common factors and the forward rate unbiasedness hypothesis. Cross-sectional dependency simply refers to the situation when the shock that occurs in one country affects other countries as well. Hu, F. B. Income distribution and life expectancy: A critical appraisal. To answer this question, the role of economic, social, and political globalization and democracy in life expectancy in those countries is empirically investigated. How Globalization Impacts Local Culture & Society - Study.com The impact of income inequality, environmental degradation and globalization on life expectancy in Pakistan: An empirical analysis. 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. Is trade good for your health? 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. 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). Pesaran, M. H., Ullah, A., & Yamagata, T. (2008). 71112. In economics, globalization can be defined as the process in which businesses, organizations, and countries begin operating on an international scale. (2019) who found a positive relationship between globalization and life expectancy. These results are contradictory to positive views on the role of globalization in public health. In the selection of panel data estimation methods, the results of those preliminary analysis are taken into account. To the best of our knowledge, it is the first study that investigates the relationship between SDG3 and SDG17. In our study, while globalization is used as a proxy indicator of global cooperation, democracy is an indicator of cooperation between societies and governments. 3 is Pesaran et al. If the calculated LM statistic is below the critical value, the null of cointegration will be accepted. 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. 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. Or, Z. At the same time, innovations in information technology enable immediate communication and the rapid transfer of financial assets across national borders. Raul Prebisch and the origins of the doctrine of unequal exchange. Is globalization good for your health? Individuals living in developed countries live a healthier life compared to those living in less developed countries. A bias-adjusted LM test of error cross-section independence. Welander et al. Welander, A., Lyttkens, C. H., & Nilsson, T. (2015). 2019b). Sustainable Development, 27(4), 545572.
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