The impact of globalization on domestic growth in Africa

Thomas L. Ainscough, University of South FloridaFollow
Todd M. Shank, University of South FloridaFollow

Abstract

Research into the impacts of globalization on domestic growth in Africa has been scarce and the results of the research that does exist have been mixed. This research addresses this gap in the literature by using the newly revised KOF Globalization Index to determine the impact of social, political, and financial globalization on African economies. The KOF Index was revised substantially in 2019. Our full data set includes 40 years of data, from 1980-2019. Findings indicate that the relationship between globalization and GDP is best represented by a non-linear cubic model. With that model, social globalization has become Africa’s most important predictor of GDP, particularly in the most recent ten-year period. Economic globalization was also a small, but significant, predictor. Implications for policymaking are also discussed.

Keywords

KOF Index, nonlinear regression model, GDP growth, economic development

Chinese Abstract

全球化对非洲国内增长的影响

全球化对非洲国内增长影响的相关研究甚少，而现有的研究结果也好坏参半。本研究透过使用新修订的 KOF全球化指数来确定社会、政治和金融全球化对非洲经济的影响，以弥补文献中的空白。 KOF 指数在 2019 年进行了大幅修订。我们的完整数据包括 1980 年至 2019 年内 40 年的资料。研究结果表明，全球化与国内生产毛额（GDP）之间的关系最能以非线性三次模型来表示。根据这个模型，社会全球化已成为非洲国内生产毛额（GDP）最重要的预测因素，特别在最近十年期间。经济全球化也是一个虽小但具备显著性的预测因子。文章也讨论了此结果对政策制定的意义。

关键词: KOF指数、非线性回归模型、国内生产毛额 (GDP) 增长、经济发展

ORCID Identifiers

Thomas L. Ainscough: https://orcid.org/0000-0001-6555-2875

Todd M. Shank: https://orcid.org/0009-0009-2079-2272

DOI

10.5038/2640-6489.8.2.1245

Recommended Citation

Ainscough, T. L., & Shank, T. M. (2023). The impact of globalization on domestic growth in Africa. Journal of Global Business Insights, 8(2), 168-178. https://www.doi.org/10.5038/2640-6489.8.2.1245