case study

Topics: Economic growth, International trade, Economics Pages: 50 (4179 words) Published: January 21, 2014

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


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


Accepted: January 28, 2012

Published: March 15, 2012


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.


ISSN 1923-3981

E-ISSN 1923-399X

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...

References: Aizenman, J. & Noy, I. (2005). FDI and Trade – Two Way Linkage?, The quarterty Review of Economics and Finance,
46, 317-337.
Alfaro, L., Chanda, A. K. & Sayek, S. (2004). FDI and Economic Growth: The Role of Local Financial Markets. Journal
of International Economic, 64, 89-112
Arribs, I., Perez, F. & Tortosa-Ausina, E. (2009). Measuring Globalization of International Trade Theory and Evidence,
Journal of World Development, 1
Baylis, J. (2007). The Globalization of World Politics: An Introduction to International Relations. Oxford University
Borensztein, E., D., Gregorio, J. & Lee, J., W. (1998). How does foreign direct investment affect economic growth?.
Chaisrisawatsuk, S. W. (2007). Import, Export and Foreign Direct Investment Interactions and Their Effects.
Chang, C & Lee, C. (2010). Globalization and Economic Growth: A Political Economiy Analysis for OECD Countries,
Global Economic Review, Vol
Frederic, S. M. (2007). Globalization and financial development, Journal of Development Economics, Devec-01343;No
of pages 9.
Friedman, T. L. (2000). The Lexus and the Olive Tree. New York, Anchor books.
Friedman, T. L. (2000). The Lexus and the Olive tree. New York, Anchor books.
Ghosh, M. & Wang, W. (2010). Does FDI Accelerate Economic Growth? The OECD Experience Based on Panel Data
Esrtimates for the Period 1980-2004, Global Economy Journal,Vol,9
Held, D. (2000). A globalization world; culture, economic, political. New York, Rutledge Press.
Johson, A. (2006). The effects of FDI inflow on Host Country Economic Growth. paper 58, The Royal Institute of
Technology, Center of Excellence for Studies in Science and Innovation Sweden CESIS), Electronic Working
Njong, A. M. (2008). Investigation the Effects of Foreign Direct Investment on Export Growth in Cameroon. Faculty of
Economic and Management, University of Dschang
Portes, R. & Rey, H. (2005). The Determinats of Cross Border equity Flows. Journal of International Economics, 65,
Rajan, S. Rajiv Kumar, R. & Virgil, Na. (2008). New Dimensions of Economic Globalization. Singapore, World
Scientific Publishing.
Shane, M. (2007). Basic guide to the world economic growth.1970 to 2007, USDA’s international macroeconomic data
set: [Online] Available: http://wwwers.usda.gor/data/macroeconomics/
Unite Nation Development Programs. (1999). Globalization and development. Twenty-ninth sessions, Brazil.
United Nation Conference on trade and development. (2011). updated 27.04.2011. [Online] Available:
Waters, M. (1995). Globalization. London; Rout ledge Press.
World Bank. (2011). World Development Indicator, [Online] Available:
Zenegnaw, A
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Global Business Case Study Essay
  • Case Study and Implementing Diversity Policies Research Paper
  • Kerala Case Study Essay
  • Essay on Examples of Swot Cases
  • Essay about A Comparative Study of Mergers and Acquisitions Within the Eu Aviation Sector: a Case Study of British Airways and Iberia.
  • Exploring Corporate Strategy
  • Study Guide for Gbe Essay
  • Essay on Assessment 2 Case Study Notes

Become a StudyMode Member

Sign Up - It's Free