The Effect of Globalisation for Economic Growth of Developing Countries
Keywords:economic growth, developing countries, KOF Globalisation index, GMM model.
This paper aims to evaluate what effect globalisation has on economic growth of developing countries. Globalisation is measured by economic, political and social dimensions of KOF Globalisation index, also the overall globalisation score of the same index. In cases of economic and overall globalisation, trade balance was
considered. Empirical analysis was done using two-step system GMM model. The results show that overall globalisation has immediate negative impact on growth, while economic dimension of globalisation has a negative impact in a short run, but a positive impact on economic growth in the long run.