case study

Topics: Economic growth, International trade, Economics Pages: 50 (4179 words) Published: January 21, 2014
www.sciedu.ca/rwe

Research in World Economy

Vol. 3, No. 1; March 2012

Globalization and Economic Growth: A Case Study in
A Few Developing Countries (1980-2010)
Abdolmajid Arfaei Moghaddam (Corresponding author)
Department of Civilization and Government Studies,
Faculty of Human Ecology, University Putra Malaysia,
Tel: +603-894-67058

E-mail: marfaeim@hotmail.com

Ma’rof Redzuan
Department of Social and Development Science,
Faculty of Human Ecology, University Putra Malaysia,
Tel: +603-894-67058
Received: December 12, 2011
doi:10.5430/rwe.v3n1p54

E-mail: marof@putra.upm.edu.my

Accepted: January 28, 2012

Published: March 15, 2012

URL: http://dx.doi.org/10.5430/rwe.v3n1p54

Abstract
The objective this study is to investigate the globalization indicators for measuring and evaluating the economic development scale. The output generated from eight selected countries revealed a fast improvement in the Gross Domestic Product (GDP) and economic growth rate. Significantly, attraction of Foreign Direct Investment (FDI) and rise of FDI as a percentage of GDP in these countries have impacted positively on foreign trade at international and regional levels. The data from these countries show that substantial growth in their economies is related unprecedented high FDI inflows. Generally, they had economic development and access to high income and as active players in the global economy.

Keywords: Globalization, FDI, GDP, Exports and Imports of Goods, Economic Growth Rate 1. Introduction
The process of globalization brings about quick transformation and a quantum leap in various aspects of global society. According to UNDP (1999, p 25): “Globalization, a dominant force in the 20th century’s last decade, is shaping a new era of interaction among nations, economies and people. It is increasing the contacts between people across national boundaries in economy, in technology, in culture and in governance”. In fact, globalization has emphasized the importance of being growth-oriented in terms of economic indicators that include per capita income, Gross Domestic Product, Gross National product, external investments, external trade including import and export of goods, rate of economic growth, and new technology among other things. In other words, economic globalization is focused on the development paradigm of economics in the world by state corporations in the national and international levels.

From the sociological and economic globalization perspective, it can be seen that international participations and transnational co operations has increased between global nations and quickened the globalization process particularly in the past two decades. Such increased participation of the world’s nations has brought about a high level of integration and international cooperation within the globalization umbrella. It means that countries which prioritized the significance of FDI and merchandize trade in the global economy marched from underdevelopment towards improvement and development of their individual economies.

2. Related Literature
There are various approaches of globalization. In the issues of globalization, we refer to few approaches from the viewpoint of scientists and international organizations. Waters (1995) says globalization as a sudden acceleration in historical transformations of human life. Mean while, David Held (2000) say’s globalization should understand as a processes of cultural, economic and political which expends over space and time.

54

ISSN 1923-3981

E-ISSN 1923-399X

www.sciedu.ca/rwe

Research in World Economy

Vol. 3, No. 1; March 2012

Writer like Thomas Fireman (2000, p 7-8) says globalization is: “Inexorable integration of markets, nation states and technology … the spread of free market capitalism to virtually every country in the world”. Baylis (2007) says economic globalization is affected by changes in the international structure, which has two...

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