Can performance of indigenous factors influence growth and globalisation?

Abstract

This paper employs a total of thirty four openness factors and indigenous factors to construct two indicators for 62 world economies for the period 1998-2002. While most globalisation studies concentrated on openness factors, regression estimates and simulation studies show that sound performance in indigenous factors are crucial to an economy's growth and globalisation. Empirical evidence shows that an optimal performance in indigenous factors can be identified, and that successful globalised economies are equipped with strong performance in their indigenous factors