Westerlund, J., & Edgerton, D. L. (2007). This assumption is hard to satisfy due to integration among countries. Positive and negative effects of Globalization. Because of the pressure on the government about human rights, disadvantaged people are becoming able to meet their basic human needs. Part of Springer Nature. If a media asset is downloadable, a download button appears in the corner of the media viewer. The resulting spread of slavery demonstrates that globalization can hurt people just as easily as it can connect people.The rate of globalization has increased in recent years, a result of rapid advancements in communication and transportation. Menyah, K., Nazlioglu, S., & Wolde-Rufael, Y. The determinants of mortality. Another finding of the study is that socioeconomic factors such as income, education, and access to health care services are important determinants of health status. We measure individual involvement with global networks and local, national, and global social identity through a questionnaire. Thus, the attention of politicians can be attracted to the problems of the poor. In addition, democracy is an important tool in achieving the goal of a healthy society, as it fosters accountability, transparency, and partnership between governments and the societies they rule. (2008) bias-adjusted LM tests are given in Table 1. CESifo Working Paper (No. The ignorance of cross-sectional dependence results in biased and inconsistent estimates and wrong inferences (De Hoyos and Sarafidis 2006; Chudik and Pesaran 2013). Zafar, M. W., Saud, S., & Hou, F. (2019a). Such results may also lead to incorrect inferences (Chudik and Pesaran, 2013). Harrison, A. (1999). The previous literature provides a lack of evidence in the context of globalization, democracy, and life expectancy relationship. Owen, A. L., & Wu, S. (2007). World Development, 38(9), 11911203. Positive and Negative Effects of Globalization | Edusson Blog (2000). Increasing the social welfare level is a complex process that depends on economic and non-economic factors. Impact of globalization in south africa. The Impact of Globalization Bingley: Emerald Group Publishing Limited. 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. For example, many software engineers and Internet entrepreneurs who live and work in Silicon Valley, California, maintain homes inand strong social ties toIndian states such as Maharashtra and Punjab. Another finding in this study shows that health expenditures in those countries failed to increase life expectancy. The authors used nonlinear time series analysis methods utilizing the data of 16 Sub-Saharan African countries over the period 19702012. Saint Akadiri, S., Alola, A. Product sales Since the start of civilization, people have traded goods with their neighbors. Second, although rapidly increasing consumption options and diversity are known as welfare indicators, they also can cause stress which is known as an important determinant of many diseases both psychological and physical (Cutler et al. Hu, F. B. Localisation opportunities provide direct benefits for developing countries to . The role of political globalization on this point is forcing governments to adopt global institutions. Prevention of HIV-1 infection with early antiretroviral therapy. 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. 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). The Econometrics Journal, 11(1), 105127. The effect of democracy on life expectancy is also positive and significant at 1% which confirms the findings of Franco et al. The relationship also occurs for men, while GDP per capita dropped from the regression model due to high collinearity. These results support the evidence of Barlow and Vissandjee (1999), Or (2000), and Shahbaz et al. Bai, J., & Kao, C. (2006). Ali A, & Audi M (2016). Globalization is a process of growing exchange, interaction and integration between people, governments and private organizations across the globe. How Globalization Impacts Local Culture & Society - Study.com 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. First, it can be observed that previous studies are mostly based on traditional estimation methods. Westerlund, J. Globalization and disease: In an unequal world, unequal health! Globalization can simply be defined as the process of international integration which has economic, social, and political dimensions (Dreher 2006). Indeed, the working conditions of people at some points in the supply chain are deplorable. Governments that know the international sanctions required by these violations have to be more cautious against human rights violations. Particularly in empirical work in the context of globalization which refers to economic, political, and cultural integration among countries, considering the cross-sectional dependence becomes more important. According to Trading Economics (2016) the unemployment rate in Spain is close to 25% in recent years, which would increase the pressure to the local labor market. These results are contradictory to positive views on the role of globalization in public health. National Geographic Society is a 501 (c)(3) organization. Globalization in the Modern World - ThoughtCo The author suggested the estimation of k using an information criterion as. In the estimation of the model, the panel data analysis methods are used. The United Nations (2019). & Acaravci, A. Political Research Quarterly, 54(3), 509529. However, rising global human rights became an important step to advance public health issues against economic concerns in the trade of pharmaceutical products. Google Scholar. 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. Globalization can benefit a country's economy in many ways: Increases economic growth. A bias-adjusted LM test of error cross-section independence. Competition Competition in the market is largely due to globalization. Another negative effect of globalization is trade. Those countries are Benin, Burkina Faso, Burundi, Central African Republic, Chad, Democratic Republic of Congo, The Gambia, Haiti, Madagascar, Malawi, Mali, Nepal, Niger, Rwanda, Sierra Leone, and Togo. The null and alternative hypothesis for both test statistics; \({H}_{0}\): No cross-sectional dependence exist; \({H}_{1}\): Cross-sectional dependence exist. (1970). Socially, globalization has facilitated the exchange of ideas and cultures, contributing to a world view in which people are more open and tolerant of one another. The case study of Port Elizabeth is used to chart some of these changes. However, according to his results, in 19 of 99 countries, globalization affects health positively. While every effort has been made to follow citation style rules, there may be some discrepancies. PDF The Social Impact of Globalization in the Developing Countries (2019). Positive and Negative Impacts of Globalization Welander, A., Lyttkens, C. H., & Nilsson, T. (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. 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. These SDGs are Good Health and Well-Being (SDG3) and Partnerships for the Goals (SDG17). The impact of income inequality, environmental degradation and globalization on life expectancy in Pakistan: An empirical analysis. In this study, the cointegration relationship was investigated by Westerlund and Edgerton (2007) LM bootstrap test. Westerlund and Edgerton (2007) suggested following LM test in order to test the null of cointegration. CAS CAS In this study, we investigated the role of globalization and democracy in life expectancy in 16 low-income countries.Footnote 1 Following Barlow and Vissandjee (1999) and (2000), GDP per capita is used as a control variable in order to mitigate omitted variable bias. Chudik A, & Pesaran, MH (2013) Large panel data models with cross-sectional dependence: a survey. 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. If you have questions about how to cite anything on our website in your project or classroom presentation, please contact your teacher. alleviation). 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. Knowledge sharing and technology transfer between nations have become easier. World Bank Income Groups MDGs Index Values in 2015. Although homogenizing influences do indeed exist, they are far from creating anything akin to a single world culture. (2008) as follows: where \(\stackrel{\sim }{S}\) is the Swamy test statistic and k is a number of explanatory variables. 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 globalization variables are between 0100, and 100 refers to the highest globalization level. Increased Transport of Goods One of the primary results of globalization is that it opens businesses up to new markets in which they can sell goods and source labor, raw materials, and components. The result is a collection of elite groups whose unifying ideals transcend geographical limitations. 5. 1 are heterogeneous. On a global view, although health-related problems are largely resolved, the situation is not as good for low-income countries. In economics, globalization can be defined as the process in which businesses, organizations, and countries begin operating on an international scale. 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). Determinants of life expectancy in developing countries. Therefore, the positive impact of globalization on health first emerged with its positive effects on economic growth (Labont et al. Our empirical work also supports the evidence of Bergh and Nilsson (2010) in terms of positive effect of economic globalization on life expectancy. This makes governments more accountable in the global area and forcing them to pay attention to protect human rights. The 17 Sustainable Development Goals announced by the United Nations are important guides for the development processes of developing countries. When you reach out to him or her, you will need the page title, URL, and the date you accessed the resource. (1999). According to the results, the null of homogeneity is accepted at %1 in all models. Is globalization good for your health? Empirical results show democracy has a significant positive impact on life expectancy and it reduces infant mortality. The second group mostly focuses on the benefits of free trade, capital mobility, and technology transfers (Rao and Vadlamannati 2011). Particularly rising sexual tourism and migrant sex workers increase the spread of sexually transmitted diseases such as HIV/AIDS. In the selection of stationarity tests and long-run estimators, the existence of cross-sectional dependence will be decisive. Applied economics, 38(10), 10911110. Given that globalisation is here to stay, it is . (2020). \({V}_{Tij}\), \({\mu }_{Tij}\), and \({\widehat{\rho }}_{ij},\) respectively, represent variance, mean, and the correlation between cross section units. 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. To improve the health conditions of a country, the welfare of the poor should be improved as well. The effects of globalization on growth were mostly driven by free trade, international specialization, technology transfers, knowledge spillovers, and competitive markets. Judge, K. (1995). Buss, P. M. (2002). Econometrica: Journal of the Econometric Society, 38, 311323. However, we should consider other possibilities in the context of spreading communicable diseases. Globally, HIV, tuberculosis, and malaria targets have been met. Therefore, the positive impact of globalization on health first emerged with its positive effects on economic growth (Labont et al. Moreover, this effort supports economic growth in developing countries. 2009: 10). Globalization | Examples, Impact, & Pros and Cons | Britannica Cadernos de Sade Pblica, 18, 17831788. First, we provide a new perspective in the context of sustainable development goals. (2011). Raul Prebisch and the origins of the doctrine of unequal exchange. In this sense, it can be said that the evidence we found for low-income countries is in line with the author's evidence. When trade liberalization and income increases are considered together, people's access to treatments and medications can be easier and life expectancy may be prolonged. The impact of economic, social, and political globalization and democracy on life expectancy in low-income countries: are sustainable development goals contradictory?. Bulletin of the world Health Organization, 79, 827833. It is a consequence of cross-border business. This study presents gender-specific estimates separately for men and women. This approach is simply based on adding cross-sectional averages to the models as proxies of unobserved common factors. This method considers cross-sectional dependence and can be used, while the series are integrated in the same order. Our work supports the idea that in order to achieve SDG3, global partnership and democracy are required. Is democracy good for health? 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. 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. Health and democracy. Journal of Conflict Resolution, 56(3), 516546. 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. 4. Determinants of national life expectancy. The International journal of health planning and management, 31(4), 511536. Safaei, J. Therefore, it is seen that SDG3 and SDG17 targets are compatible with each other. 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. (2008) bias-adjusted LM test statistic. 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. Our results show that a higher level of per capita income is positively associated with higher levels of life expectancy. 1229). 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. 4. Testing for cross-sectional dependence in panel-data models. Ali and Audi (2016) also analyzed the role of globalization in life expectancy in Pakistan. 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. 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. Social Science and Medicine, 136, 5263. 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. In our study, while globalization is used as a proxy indicator of global cooperation, democracy is an indicator of cooperation between societies and governments. To prevent serial correlation, the regression must be augmented with lagged first differences of both \({y}_{it}\) and \({\stackrel{-}{y}}_{t}\) as follows: After the calculation of CADF statistics for each cross section (\({CADF}_{i}\)), Pesaran (2007) calculates the CIPS statistic as average of CADF statistics. (2006). In this study, we determined the number of common factors via the Bayesian information criterion (BIC) as follows. 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. The changes created by social and political globalization play a major role in this emergence. Migration is also another fact to take into account. Furthermore, GDP per capita and the proportion of white-collar workers reduce premature death for both men and women, while alcohol consumption increases it. Poverty is detrimental to access to health services. Efficient inference in a random coefficient regression model. De Hoyos, R. E., & Sarafidis, V. (2006). Chapman, A. R. (2009). Pesaran, M. H., Ullah, A., & Yamagata, T. (2008). Therefore, economic development and improvement of health conditions represent a two-way process. Beck, T., Maimbo, S. M., Faye, I., & Triki, T. (2011). At the same time, innovations in information technology enable immediate communication and the rapid transfer of financial assets across national borders. Social identity is conceptualized as attachment and identification with a group. BMJ, 311(7015), 12821285. Evidence from a new index of globalization. Businesses in several different countries may be involved in producing even seemingly simple products such as cotton T-shirts.Globalization affects services too. Positive And Negative Impacts Of Globalization On Culture 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). 2023 Springer Nature Switzerland AG. The calculation of the test statistic of Swamys model is given in Eq. 3 is Pesaran et al. Therefore, estimators assume parameter homogeneity are used in our analysis. https://unstats.un.org/sdgs/indicators/Global%20Indicator%20Framework%20after%202019%20refinement_Eng.pdf (Access Date: 25.12.2019). However, it was emphasized that some sub-goals should be realized in order to reach this goal. Dreher, A., & Gaston, N. (2008). In the estimation of long-run coefficients, the CUP-FM estimator was used and this method is based on the following regression, where \({\widehat{\lambda }}_{i}^{^{\prime}}\) refers to the estimated factor loadings and \(\hat{y}_{{i,t}}^{ + } = y_{{i,t}} - \left( {\lambda _{i} ^{\prime } \hat{\Omega }_{{F \in i}} + \hat{\Omega }_{{\mu \in i}} } \right)\hat{\Omega }_{{ \in i}}^{{ - 1}} {{\Delta }}x_{{i,t}}\) indicates the transformation of the dependent variable for endogeneity correction. Besley, T., & Kudamatsu, M. (2006). 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. They can also get a better education and can enjoy better socioeconomic conditions.

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