The impact of globalisation on economic growth: The case of Visegrad countries

Daniel Francois  Meyer

doi:10.23762/FSO_VOL8_NO2_2

Published : 2020-06-29

Vol. 8 No. 2 (2020)

The impact of globalisation on economic growth: The case of Visegrad countries

Daniel Francois Meyer

DOI: https://doi.org/10.23762/FSO_VOL8_NO2_2

Abstract

The process of globalisation has been accelerating over the last few decades. The majority of scholars opine that globalisation and the opening of the global economy have more benefits than drawbacks. The objective of this paper was to assess the situation for the Visegrad group of countries, based on the fact that these countries have a history of closed economies due to their past, and to analyse the relationship between economic globalisation and economic growth in those countries from 1990 to 2019. The methodology utilised is quantitative in nature, and various econometric methods were used to assess the long and short-run relationships between the two variables with economic growth as the dependent variable. Two control variables were also included in the study, namely domestic investment and consumer price index (CPI). The results from the analysis confirmed the long-run relationship between all the variables, with economic globalisation being a significant and positive predictor of economic growth, while domestic investment also drives economic growth with both variables having similar coefficients of between 0.43 to 0.79. The short-run results via Granger causality tests indicated that economic globalisation causes economic growth while investment and economic growth have a bi-directional causality. From the results, it is clear that the economies of the four countries have been substantially opened over the last three decades, which has led to relatively high levels of growth. The countries have excellent locations within the European Union and have benefitted as a result.

Keywords:

domestic investment, economic globalisation, economic growth, Visegrad countries

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Meyer, D. F. . (2020). The impact of globalisation on economic growth: The case of Visegrad countries. Forum Scientiae Oeconomia, 8(2), 25–36. https://doi.org/10.23762/FSO_VOL8_NO2_2

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Daniel Francois Meyer

Daniel.meyer@nwu.ac.za

Affiliation:

North-West University, South Africa South Africa

Bio Statement (e.g., department and rank)

Prof. Daniel F. Meyer is director of the TRADE research focus area at the North- West University (NWU), South Africa. Prof. Meyer is an active researcher, having published more than 100 articles and conference proceedings in local and international journals since 2013. His research focus in broad terms is on Development Economics
with a focus on regional and local economic development, economic index development, macro-economic analysis, and economic sectoral analysis. He is a “pracademic” and before he joined the university in 2010 he
was a consultant and government official at all spheres of government for more than 20 years. He is actively involved in assisting government at all spheres with the compilation of development plans as well as the implementation thereof. In this regard, he has successfully completed more than 40 such strategic plans specifically for local government. In recent years he has received a number of awards, including most inspiring
lecturer and most productive researcher on the Vaal Campus in 2016, 2017 and 2018, and was the recipient of the Vice Chancellor’s Medal for a community development project in 2016.