positive and negative effects of social globalization
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. If the calculated LM statistic is below the critical value, the null of cointegration will be accepted. Therefore, estimators assume parameter homogeneity are used in our analysis. Political Research Quarterly, 54(3), 509529. The case study of Port Elizabeth is used to chart some of these changes. The improvement of the health conditions of the poor countries depends on global partnership and economic, social, and political integration among countries. Diabetes Care, 34(6), 12491257. Compared to theoretical discussions, previous literature provides a lack of empirical evidence. Therefore, the positive impact of globalization on health first emerged with its positive effects on economic growth (Labont et al. At this point, the literature is divided into two parts. Individuals with higher incomes can benefit from better nutrition and access to health services. 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%. Environ Dev Sustain 23, 1350813525 (2021). Provided by the Springer Nature SharedIt content-sharing initiative, Over 10 million scientific documents at your fingertips, Not logged in 2011). The results of homogeneity tests developed by Pesaran and Yamagata (2008) are given in Table 2. 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. The Pros of Globalization A number of positive aspects of globalization include: Building up the economic and social structures of struggling countries and economies through free trade Creation of world power and less and less compartmentalized power sectors Learning about and sharing of new and interesting cultures with one another 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 Econometrics Journal, 11(1), 105127. The role of political globalization on this point is forcing governments to adopt global institutions. 2009: 10). Third, due to knowledge spillovers and communication technology, people can learn about healthy nutrition and protection from communicable diseases. (2008). 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. The author suggested the estimation of k using an information criterion as. 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). 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 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. According to the results, globalization significantly reduces child mortality. This means that unskilled workers may be affected by declining wages, which are under constant pressure from globalization.Into the FutureRegardless of the downsides, globalization is here to stay. Good for living? alleviation). cultural globalization, phenomenon by which the experience of everyday life, as influenced by the diffusion of commodities and ideas, reflects a standardization of cultural expressions around the world. Globalization can simply be defined as the process of international integration which has economic, social, and political dimensions (Dreher 2006). However, achieving all of these goals is only possible if the goals are consistent with each other. However, the assumption that the number of common factors (k) is known cannot be satisfied in practice (Westerlund, 2007). 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 . Our empirical work also supports the evidence of Bergh and Nilsson (2010) in terms of positive effect of economic globalization on life expectancy. Democracy also refers to accountability levels of governments. Get a Britannica Premium subscription and gain access to exclusive content. 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. However, in 19 of 99 countries, globalization increases public health performance. Editor of. (2019) investigated the impact of globalization, financial development, and economic growth on life expectancy. World Bank Income Groups MDGs Index Values in 2015. As shown in Fig. The United Nations (2019). While every effort has been made to follow citation style rules, there may be some discrepancies. Therefore, it is seen that SDG3 and SDG17 targets are compatible with each other. A Historical View Globalization is not new. Increasing the social welfare level is a complex process that depends on economic and non-economic factors. In addition, democracy improves child health and it also increases the beneficial effects of globalization on child health. New York: Knopf. 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). Globalization also gives organizations the opportunity to take advantage of lower labor costs in developing countries, while leveraging the technical expertise and experience of more developed economies.With globalization, different parts of a product may be made in different regions of the world. Moreover, this effort supports economic growth in developing countries. Empirical results show that people living in democracies enjoy better health conditions such as longer life expectancy, better maternal health, and lower child mortality. Free trade opportunities between countries help avoid business complications. In economics, globalization can be defined as the process in which businesses, organizations, and countries begin operating on an international scale. By sharpening such identities, these NGOs have globalized the movement to preserve indigenous world cultures. This study presents gender-specific estimates separately for men and women. Dreher, A., & Gaston, N. (2008). 4, \({\stackrel{\sim }{\beta }}_{i}\) and \({\overbrace{\beta }}_{WFE},\) respectively, indicate the parameters obtained from pooled OLS and weighted fixed effects estimation, while \({M}_{T}\) is the identity matrix. Localisation opportunities provide direct benefits for developing countries to . The average cost of goods is a key aspect that contributes to increases in the standard of living. 2023 Springer Nature Switzerland AG. These results support the evidence of Barlow and Vissandjee (1999), Or (2000), and Shahbaz et al. The positive impact of globalization can be seen while connecting production technology. Pesaran (2006) suggested a factor modeling approach to solve the cross-sectional dependency problem. MPRA Working Paper, No. Google Scholar. This leads to the reallocation of resources to solve the primary problems of the society. Following this, Besley and Kudamatsu (2006) investigated the nexus between democracy and health outcomes utilizing panel data from the 1960s to the 2000s. Even HIV-infected people can survive with antiretroviral therapy, and it also reduces sexual transmission of the infection (Dollar 2001; Cohen et al. She or he will best know the preferred format. (2019). The Triangular Trade network in which ships carried manufactured goods from Europe to Africa, enslaved Africans to the Americas, and raw materials back to Europe is another example of globalization. Poverty is detrimental to access to health services. Product sales 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 . After determining the cointegration relationship, we estimated long-run coefficients utilizing CUP-FM and BA-OLS estimators proposed by Bai and Kao (2006) and Westerlund (2007), respectively. Owen and Wu (2007) found a positive relationship between trade openness and health outcomes using a panel of 219 countries. 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). Many businesses located in the United States have outsourced their call centers or information technology services to companies in India. 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. Chapman, A. R. (2009). Evidence from a new index of globalization. 2014). One of the most critical negative effects of globalization deals with the gap between social layers ("Globalization," 2015). This is because globalization enables economies to compete fairly at all levels, hence attracting investors. The Rights Holder for media is the person or group credited. Health in 2015: from MDGs to SDGs 2015. The first one blames globalization and argues that poverty and as a result of this, low life expectancy derives from the inequality created by globalization itself (Buss 2002). 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. Efficient inference in a random coefficient regression model. The human rights approach focuses on how globalization affected disadvantaged people worldwide (Chapman 2009). The effects of globalization on growth were mostly driven by free trade, international specialization, technology transfers, knowledge spillovers, and competitive markets. The critical values will be provided using the bootstrap method in order to prevent cross-sectional dependence. This study provides several contributions to previous literature. (2020). Environmental science and pollution research, 26(13), 1324613262. 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. Previous works mostly provide global evidence, while only a few studies focus on less developed countries. Healthy people have higher opportunities to earn a higher income than unhealthy people. Due to extensive R&D investments and scientific activities, developed countries can find new treatment methods and supply advanced drugs. Testing slope homogeneity in large panels. Westerlund, J. 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. 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. 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. In addition to positive aspects globalization in this day also exist some hidden risks. Welander, A., Lyttkens, C. H., & Nilsson, T. (2015). By minimizing the BIC, we obtain \(\widehat{k}\). 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. Is globalization good for your health? Improved fiscal policies within countries and international trade agreements between them also facilitate globalization. Globalization has led to increases in standards of living around the world, but not all of its effects are positive for everyone. Another linkage can be established through accountability (Besley and Kudamatsu 2006). International trade, capital flows, migration, technological transfer and cultural exchanges are some of the typical manifestations of this process. (2006). Trade openness is one of the most important dimensions of globalization. The results we found contradict Tausch (2015)s evidences in 80 of 99 countries. 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. (2016). 1, X refers to the KOF Globalization Index developed by Dreher (2006). The advantages of globalization are actually much like the advantages of technological improvement. Beck, T., Maimbo, S. M., Faye, I., & Triki, T. (2011). De Hoyos, R. E., & Sarafidis, V. (2006). Google Scholar. For more than 1,500 years, Europeans traded glass and manufactured goods for Chinese silk and spices, contributing to a global economy in which both Europe and Asia became accustomed to goods from far away. Health outcome measures of this study are infant mortality and life expectancy. Cohen, M. S., Chen, Y. Q., McCauley, M., Gamble, T., Hosseinipour, M. C., Kumarasamy, N., & Godbole, S. V. (2011). 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. Guzel, A.E., Arslan, U. The results of the CADF unit root test are given in Table 3. In the estimation of the long-run relationship between the variables, second-generation panel data analysis methods that consider cross-sectional dependency are used. However, some countries still suffer from poor adaption to global markets. The rejection of the null hypothesis shows that slope coefficients of Eq. The consequences of this change can have positive and negative effects. Increasing Cultural Diversity. Africa: The World Bank. (2019b). Harrison, A. POSITIVE IMPACTS OF GLOBALIZATION 1. Judge, K. (1995). Empirical results obtained are the opposite of the expected. The findings obtained from our study show that economic, social, and political integration of countries and democracy accelerate the process of achieving a healthier society. Life expectancy at birth data is provided by World Bank (2019)World Development Indicators. To answer this question, the role of economic, social, and political globalization and democracy in life expectancy in those countries is empirically investigated. Bergh, A., & Nilsson, T. (2010). Is trade good for your health? 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). Globalization and disease: In an unequal world, unequal health! In our study, while globalization is used as a proxy indicator of global cooperation, democracy is an indicator of cooperation between societies and governments. However, this assumption is hard to satisfy due to rising economic, social, and political integration between countries. New New technologies which emerge in some developed country are available to other poor and underdeveloped In our empirical work, economic, social, and political globalization and democracy variables were used as proxies of the subcomponents of SDG17. Globalization can benefit a country's economy in many ways: Increases economic growth. Pesaran, M. H. (2007). Raul Prebisch and the origins of the doctrine of unequal exchange. Marshall, M. G., & Jaggers, K. (2002). Gives Access to a Larger Market Through globalization countries and companies have access to a bigger consumer base. Economic Modelling, 37, 386394. The results show that the null of cointegration is accepted for all models. Social Indicators Research, 129(3), 11551170. Any change has winners and losers, and the people living in communities that had been dependent on jobs outsourced elsewhere often suffer. (2019). American Economic Review, 105(5), 100104. Receiving an opportunity to extend their businesses and cooperate with foreign partners, people with high incomes obtain an opportunity to increase it even more. In some cases, this may contribute to improved health by enabling a more varied and healthier diet; in others, it is blamed for increases in unhealthy food consumption and diabetes.DownsidesNot everything about globalization is beneficial. Gygli, S., Haelg, F., Potrafke, N., & Sturm, J. E. (2019). In the selection of panel data estimation methods, the results of those preliminary analysis are taken into account. Dreher, A. It may also increase domestic income inequality. Besides being one of the indicators of development, it is one of the determinants of human capital formation which is necessary for economic development. \({\stackrel{\sim }{\Delta }}_{adj}\) is a bias-adjusted version of \(\stackrel{\sim }{\Delta }\). Ulucak, R., & Bilgili, F. (2018). The largest job creation and destruction effects come from environmental, technology and economic trends. 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. Financial development, trade openness and economic growth in African countries: New insights from a panel causality approach. If you have questions about how to cite anything on our website in your project or classroom presentation, please contact your teacher. 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. (2000). Health is one of the most important indicators of social welfare. 1 are heterogeneous. 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). 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. The results are shown in Table 4. After the preliminary analysis of unit root, the existence of a long-run relationship between the variables in our model will be investigated via Westerlund and Edgerton (2007) cointegration test. Globalization and health: Pathways, evidence and policy. Estimation and inference in large heterogeneous panels with a multifactor error structure. Is globalization really good for public health? Fixed effects estimation results reveal a significant negative relationship between public health expenditure and women's premature death. Bioethics, 23(2), 97111. 4. 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). Economics Letters, 97(3), 185190. KOF Globalization Index. As part of the North American Free Trade Agreement (NAFTA), U.S. automobile companies relocated their operations to Mexico, where labor costs are lower. (2004). Democracy also increases life expectancy in those countries. Following this study, Or (2000) analyzed the determinants of health outcomes in 21 industrialized OECD countries covering the period 19701992. CAS It affects our economies, education, culture, businesses, and personal lives. Our results show that a higher level of per capita income is positively associated with higher levels of life expectancy. It is an important instrument in the suppression of the inequality created by economic globalization. The GDP per capita that used as a control variable has a positive impact on life expectancy at a 1% level.
