Do Elections Slow Down Economic Globalization Process in India? It's Politics Stupid!

I investigate whether timing of the elections impact economic globalization process or not in India. In other words, do elections slowdown economic globalization process? The theoretical underpinning is that, policies of economic globalization lead to economic and social hardships in short run but benefit the economy in the long run. The motto behind slowing down the economic globalization process before elections is that it leads to polarization of voters and thus negatively affects the incumbent government. I make use of Axel Dreherís economic globalization index and construct ëinstrumental electoral cycleí to capture the scheduled and midterm election cycle. Using time series data for India for the period 1970 ñ 2006, I find that scheduled elections are associated with slow down in economic globalization, whereas midterm elections are not. Replacing Dreherís economic globalization index with our modified globalization index does not alter the results. I also find that slow down in economic globalization process is responsive to the propinquity to a scheduled election year. Meaning, as incumbent government nears the scheduled elections, economic globalization process keeps slowing down, while this is exactly opposite during the early years of incumbent government in office. These results suggest that elections generate ìelectoral globalization cycleî in developing democratic country like India.http://deepblue.lib.umich.edu/bitstream/2027.42/64406/1/wp929.pd

DO ELECTIONS SLOW DOWN ECONOMIC GLOBALIZATION PROCESS IN INDIA? IT’S POLITICS STUPID !

I investigate whether timing of the elections impact economic globalization process or not in India. In other words, do elections slowdown economic globalization process? The theoretical underpinning is that, policies of economic globalization lead to economic and social hardships in short run but benefit the economy in the long run. The motto behind slowing down the economic globalization process before elections is that it leads to polarization of voters and thus negatively affects the incumbent government. I make use of Axel Dreher’s economic globalization index and construct ‘instrumental electoral cycle’ to capture the scheduled and midterm election cycle. Using time series data for India for the period 1970 – 2006, I find that scheduled elections are associated with slow down in economic globalization, whereas midterm elections are not. Replacing Dreher’s economic globalization index with our modified globalization index does not alter the results. I also find that slow down in economic globalization process is responsive to the propinquity to a schedule election year. Meaning, as incumbent government nears the schedule elections, economic globalization process keeps slowing down, while this is exactly opposite during the early years of incumbent government in office. These results suggest that elections generate “electoral globalization cycle” in developing democratic country like India.Economic globalization; Election cycles; India

On the Correlation between Globalization and Vulnerability in Times of Economic Crisis — A Statistical Analysis for Europe

In this paper, we test the hypothesis that more globalized countries in Europe are equally vulnerable to the current crisis as less globalized European countries. To determine the level of globalization, we use the Maastricht Globalization Index (MGI). We measure the severity of the economic crisis with five key economic indicators. The results seem to suggest that the rising level of globalization increases vulnerability to economic crises on the one hand, while, on the other, higher levels of globalization increase the opportunities to deal with a crisi

Economic Growth under Globalization: Evidence from Panel Data Analysis

It has been controversial among economists about the impacts of globalization on growth, and the debate over the issue has intensified in recent years. In this study, we employ reliable panel data and an empirical growth model derived from production theory to investigate the effects of globalization on economic growth. The estimation results strongly suggest that economic globalization has a significant positive effect on economic growth for all countries. However, China and India would gain the most, followed by developed countries, and other developing countries would gain the least. Other important determinants of economic growth include capital, human capital, and technology.Globalization, Economic growth, Measure of Economic Globalization, International Development, F15, F43,

UAE's International Trade Policy: A Model for Openness

Through the benefits of trade openness, diversification, and economic competitiveness, the UAE was successful in its economic endeavors by creating economic winners and protecting those who have been hurt by the embrace of globalization. The country also paid special attention to the issues of wealth distribution and fairness in the allocation of economic resources (inclusive globalization). The most important lesson from UAE’s economic growth is that strong formal institutions with sound vision designed to propel economic development are keys for success

Proceedings of the Conference on Globalization and Its Discontents

Recent studies on economic globalization have used various indicators, such as the ratio of trade-to-GDP and the ratio of FDI-to-GDP, to analyze the globalization performances of national economies. Although each indicator is useful in itself, our contention is that a single composite indicator (index) can provide more comprehensive information and would enable policy-makers and researchers to compare and rank the globalization performances of different countries, country groups and regions in a given year (or period) and over time. Accordingly, in this paper, we developed the economic globalization index to measure the extent of globalization of national economies. We have constructed the economic globalization index for the period 1975-2005. The overall results indicate that rich countries tend to be more globalized than poor countries. Furthermore, rich countries have improved their globalization –relative global integration level- from 1975 to 2005; however, many of poor countries’ relative levels of global integration have deteriorated during the same period. Our results seem to be in line with studies that characterize the recent situation in the world as “truncated globalization” or simply “triadization”.globalization, economic globalization index

"Performance of Urban India during Globalization Period: An Economic Analysis"

This paper aims at economic analysis of globalization and performance of urban India during the globalization period. India's recent process of globalization is identified with the start of national economic reforms since July 1991. India's degree of globalization, measured by internationalization of trade and capital, is shown to be low at global levels. Patterns of urbanization in the post-globalization period show higher growth and concentration of population, bigger size of organized employment, higher levels of consumption, and lower levels of poverty in bigger class-size cities. Urban economic growth is increasingly contributed by service sectors, declining share of manufacturing sector, and higher labour productivity. These experiences of urban India coincide with global experiences in countries such as China, G7, and Korea. Overall, aggregate economic performance of urban India is positive during the globalization period. Demands of globalization have transformed urban development into national policies and programmes. This implies a beginning for a national policy for urban development in India.

Financial Globalization and Economic Policies

We review the large literature on various economic policies that could help developing economies effectively manage the process of financial globalization. Our central findings indicate that policies promoting financial sector development, institutional quality and trade openness appear to help developing countries derive the benefits of globalization. Similarly, sound macroeconomic policies are an important prerequisite for ensuring that financial integration is beneficial. However, our analysis also suggests that the relationship between financial integration and economic policies is a complex one and that there are unavoidable tensions inherent in evaluating the risks and benefits associated with financial globalization. In light of these tensions, structural and macroeconomic policies often need to be tailored to take into account country specific circumstances to improve the risk-benefit tradeoffs of financial integration. Ultimately, it is essential to see financial integration not just as an isolated policy goal but as part of a broader package of reforms and supportive macroeconomic policies.emerging markets, capital flows, capital account liberalization, financial globalization

Globalization and growth in the low Income African countries with the extreme bounds analysis

The relationship between globalization and economic growth, especially in the poorer developing countries, is controversial. Many previous studies have used single globalization indicators such as the ratio of exports plus imports to GDP. This paper uses a comprehensive measure of a globalization of Dreher (2006), which is based on measures of globalization of the economic, social and political sectors. Panel data estimates with data of 21 low income African countries show a small but significant positive permanent growth effects. The sensitivity of this growth effect is examined with the extreme bounds analysis (EBA). Contrary to the findings by Levine and Renelt (1992) that cross country growth relationships are fragile, the effects of globalization and some other determinants of the long run growth rate are found to be robust by EBA.Globalization, Economic growth, Solow model, Africa and Extreme bounds analysis.