Globalization and socio-economic development in post-transition European Union countries: panel causality and regression analyses

Abstract

The consequences of globalization on economic growth and development have largely been debated both by scholars and policy makers. However, literature lacks a multidimensional analysis of the relationship between of all forms of globalization and the development of a country. Therefore, the purpose of the present paper is to investigate the impact of various globalization types on socio-economic development in eleven European Union (EU) states that faced the transition from a centralized to a market economy, during the period 1993-2016, with the help of Dumitrescu and Hurlin (2012) causality test, Beck and Katz (1995) PCSE estimator and pooled OLS regression, considering the results of pre-tests. The empirical research revealed that economic, political and cultural globalization positively influences the socioeconomic development of all the analysed states. These findings may offer valuable information for the policy makers of the eleven economies which could enhance the development in a globalized era.

Keywords

• globalization
• socio-economic development
• panel regression and causality analyses