ECONOMICS OF GLOBALIZATION: An Approach Towards Inclusive Growth for Developing Nations

Rakhshanda KOSER,* Saima SARWAR,* and Wasif SIDDIQI*

The present study aims to explore the role of various dimensions of globalization, i.e., political, economic and social globalization, using the time span of 1991 to 2013 in relation to inclusive growth. Using Fixed Effect Model the results show that the overall impact of globalization is mix for developing nations, i.e., on one hand it reduces poverty, while on the other hand it does not validate the employment-driven-strategy for economic growth of developing nations. Treating individually, the impact of each dimension of globalization on these two measures of inclusiveness and the role of political globalization is only being observed consistently, improving both the poverty and employment conditions in developing countries. It suggest that information flow, personal contacts, cultural proximity and the role of embassies for facilitating other nationals to have access into the world market is contributing towards inclusive growth. Impact of economic globalization is confusing, due to its positive effect on poverty; but it is being proved healthier for employment generation. All these findings help to conclude that developing nations should not depend solely on this development strategy; rather an amalgam of both the localization and globalization should be practised.