The Impact of Globalization on Economic and Technological Development of Countries

Abstract

Introduction: One of the primary forces behind economic growth in the contemporary world is globalisation. Globalisation presents many challenges for states, in addition to the rise in trade volumes brought about by market openings, the expansion of national economies’ competitiveness through communications advancements, the adoption of cutting-edge technologies, and the draw of foreign investment.

Objectives: This article aims to examine the advantages and disadvantages of globalisation’s influence (the study object) on the economic growth processes of various nations.

Methods: This study’s methodological foundation is the system approach. The primary techniques used are content analysis and correlation analysis, the comparative approach, abstraction, induction and deduction, and systematisation.

Results: The degree of a nation’s economic development, as shown by GDP (PPP) per capita, is directly correlated with its level of globalisation (as measured by the KF Globalization Index). Nevertheless, nations' degree of globalisation is weakly correlated with other macroeconomic indices, such as unemployment, inflation, and public debt. However, nations characterised by high levels of public debt and those with high rates of economic development suffered the most from the 2008 global financial crisis. The authors discovered that globalisation encourages Asian nations to participate economically in global economic processes. These nations are already surpassing developed nations (the USA and the EU) in several sectors and effectively compete with them (China leads the globe in both exports and GDP (PPP) rankings). These data dispute the claim that globalisation favours primarily developed countries (the global North). At the same time, processes within the globalisation landscape promote the spread of socioeconomic inequality throughout the world. Such disparity is common in countries in both the North and the South.

Conclusions: As a result, effective public policy is required to maximise globalisation's benefits while minimising its negative influence, promoting countries’ economic progress.