Vol. 11 No. 3 (2025)
September

Articles

Globalisation and human development: Long-term evidence from countries at different levels of development

Published 2025-09-30

  • Dorota Kuder
    • ,
  • Justyna Wróblewska

Dorota Kuder
Krakow University of Economics

Justyna Wróblewska
Krakow University of Economics

Abstract

Objective: The main goal of this research is to assess the long-term effects of economic, social, and political globalisation on human development, as measured by the Human Development Index (HDI). The study also identifies how these relationships differ across groups of countries at different levels of development, using panel data econometric techniques.

Research Design & Methods: The research used a balanced panel dataset, which included 40 countries grouped by HDI development levels across 33 years (from 1990 to 2022). The KOF Globalisation Index captures globalisation through three dimensions: economic, social, and political. The HDI serves as the dependent variable, representing the quality of life. The research methodology uses log-linear panel cointegration models, which employ common correlated effects (CCE) estimators and include a panel error correction model (ECM) to analyse long-run relationship dynamics.

Findings: Social globalisation creates positive and substantial effects on HDI in countries at all development levels, including those with very high, medium, and low development, especially in countries with limited access to essential services. The effects of economic globalisation on different groups show no pattern of sustained change, and political globalisation benefits only high-HDI countries that possess strong institutional capacity. The research demonstrates that globalisation and HDI share a cointegration relationship, while developed countries exhibit both rapid adjustment and periodic patterns.

Implications & Recommendations: The research demonstrates that globalisation produces varying impacts on human development based on the development stage of a nation and its institutional capabilities. Developing nations need to build stronger institutions and social services to benefit from social globalisation, while economic integration demands domestic reforms that include all segments of society. Advanced countries need to stay actively involved in global politics while developing strategies that suit their individual national situations.

Contribution & Value Added: The research adds value to existing literature through its comprehensive evaluation of globalisation’s multiple dimensions on human development, which examines economic, social, and political effects in different development stages. The econometric framework used in this study addresses cross-sectional dependence and heterogeneity while providing policy-relevant insights into the effects of globalisation on quality of life. A key novelty of this article lies in its differentiated analysis across HDI-based country groups, offering long-term evidence on how globalisation’s effects vary depending on national development levels and institutional capacity.

Keywords

Globalisation, human development, quality of life, panel data analysis, long-term effects

(PDF) Save

Author Biography

Dorota Kuder

Assistant Professor at the Department of International Trade at Krakow University of Economics (Poland), PhD in economics. Her research interests include New Institutional Economics, development economics and economic inequalities.

Justyna Wróblewska

Associate Professor in Department of Econometrics and Operations Research at Krakow University of Economics (Poland), PhD in economics, Habilitation in economics. Her research interests include macroeconometrics, time series analysis, cointegration, VAR models.

References

  1. Agosin, M.R. (2009). Export Diversification and Growth in Emerging Economies. CEPAL Review, 115-131. https://doi.org/10.18356/27E5D46C-EN
  2. Asongu, S.A. (2012). Globalization and Africa: implications for human development, AGDI Working Paper, No. WP/12/022, African Governance and Development Institute (AGDI), Yaoundé. https://doi.org/10.2139/ssrn.2493238
  3. Behera, J., & Sahoo, D. (2023). Does globalization spur human development at income-group and regional levels? Evidence from cross-country data. Asia-Pacific Journal of Regional Science, Springer 7(4), 1395-1436. https://doi.org/10.1007/s41685-023-00298-3
  4. Bergh, A., & Nilsson, T. (2010). Good for Living? On the Relationship between Globalization and Life Expectancy. World Development 38(9), 1191-1203. https://doi.org/10.1016/j.worlddev.2010.02.020
  5. Bergh, A., Mirkina, I., & Nilsson, T. (2016). Globalization and Institutional Quality – A Panel Data Analysis. Journal of Comparative Economics 44(3), 508-543. https://doi.org/10.1080/13600818.2014.884555
  6. Cieślik, A. (2014). Globalization And Human Development In Post-Transition Countries: Empirical Evidence From Panel Data. Oeconomia Copernicana 5(3), 7-27. https://doi.org/10.12775/OEC.2014.017
  7. Chang, R., Kaltani, L., & Loayza, N. (2009). Openness Can Be Good for Growth: The Role of Policy Complementarities. Journal of Development Economics 90(1), 33-49. https://doi.org/10.1016/j.jdeveco.2008.06.011
  8. Clark, W.C. (2000). Environmental Globalization. In J.S. Nye & J.D. Donahue. (Eds.), Governance in a Globalizing World (pp. 86-108). Cambridge MA; Washington D.C.: Brookings Institution Press. https://doi.org/10.2307/3177105
  9. Cuyvers, L. (Ed.). (2001). Globalisation and Social Development. European and Southeast Asian Evidence. Cheltenham UK, Northampton USA: Edward Elgar Publishing. https://doi.org/10.4337/9781781959947
  10. Dollar, D.L. (2004). Globalization, Poverty, and Inequality since 1980. World Bank Policy Research Working Paper 3333. https://doi.org/10.1093/WBRO/LKI008
  11. Dreher, A. (2006). Does globalization affect growth? Evidence from a new index of globalization. Applied Economics, 38(10), 1091-1110. https://doi.org/10.1080/00036840500392078
  12. Dreher, A., Sturm, J.-E., & Ursprung, H. (2008). Impact of Globalization on the Composition of Government Expenditures: Evidence from Panel Data. Public Choice 134(3-4), 263-292. https://doi.org/10.1007/s11127-007-9223-4
  13. KOF Swiss Economic Institute (2025). KOF Globalisation Index. Eidgenössische Technische Hochschule Zürich. Retrieved from https://kof.ethz.ch/en/forecasts-and-indicators/indicators/kof-globalisation-index.html
  14. Elmawazini K., Sharif A., Manga P., & Drucker P. (2013). Trade Globalization, Financial Globalization and Inequality Within South-East Europe and CIS Countries. The Journal of Developing Areas 47(2), 303-317. https://doi.org/10.1353/JDA.2013.0030
  15. Figueroa, A. (2014). The Impact Of Globalization On Human Development In The Developing Countries: The Case Of Central And South America. Revista Eletrônica de Ciência Política, 5(2). https://doi.org/10.5380/recp.v5i2.37371
  16. Giddens, A. (1990). The Consequences of Modernity. Stanford, CA: Stanford University Press. https://doi.org/10.5860/choice.28-1843
  17. Gonzalez-Perez, M. A., Velez-Ocampo, J., & Gomez-Trujillo, A.-M. (2024). From uncertainty to assurance: A retrospective analysis of Colombia’s path to emerging market status. International Entrepreneurship Review 10(3), 95-108. https://doi.org/10.15678/IER.2024.1003.07
  18. Gygli, S., Haelg, F., Potrafke, N., & Sturm, J.-E. (2019). The KOF Globalisation Index – revisited. The Review of International Organizations 14, 543-574. https://doi.org/10.1007/s11558-019-09344-2
  19. Held, D., McGrew, A.G., Goldblatt, D., & Perraton, J. (1999). Global Transformations: Politics, Economics, and Culture. Cambridge: Polity Press. https://doi.org/10.2307/40203424
  20. Holly, S., Pesaran, M. H., & Yamagata, T. (2010). A Spatio-temporal Model of House Prices in the USA. Journal of Econometrics 158(1), 160-173. https://doi.org/10.1016/j.jeconom.2010.03.040
  21. Inglehart, R. (2000). Globalization and Postmodern Values. The Washington Quarterly 23(1), 215-228. https://doi.org/10.1162/016366000560665
  22. Inglehart, R., & Baker, R.W. (2000). Modernization, Cultural Change, and the Persistence of Traditional Values. American Sociological Review, 65(1), 19-51. https://doi.org/10.1177/000312240006500103
  23. Kapetanios, G., Pesaran, M. H., & Yamagata, T. (2011). Panels with Non-stationary Multifactor Error Structures. Journal of Econometrics 160(2), 326-348. https://doi.org/10.1016/j.jeconom.2010.10.001
  24. Lederman, D., & Maloney, W.F. (2012). Does What You Export Matter? In Search ff Empirical Guidance for Industrial Policies. Washington, D.C.: The World Bank. https://doi.org/10.1596/978-0-8213-8491-6
  25. Lee, E., & Vivarelli, M. (2006). The social impact of globalization in the developing countries. Bonn: Institute for the Study of Labor (IZA). https://doi.org/10.1111/J.1564-913X.2006.TB00016.X
  26. Norris, P. (2000). Global Governance and Cosmopolitan Citizens. In J.S. Nye & J.D. Donahue. (eds.), Governance in a Globalizing World (155-177). Cambridge MA; Washington D.C.: Brookings Institution Press. https://doi.org/10.2307/3177105
  27. Papageorgiou, C., & Spatafora, N. (2012). Economic Diversification in LICs: Stylized Facts and Macroeconomic Implications. IMF Staff Discussion Note 12(13). https://doi.org/10.5089/9781475532180.006
  28. Pesaran, M.H. (2006). Estimation and Inference in Large Heterogeneous Panels with a Multifactor Error Structure. Econometrica 74, 967-1012. https://doi.org/10.1111/J.1468-0262.2006.00692.X
  29. Pesaran, M. H. (2007). A Simple Panel Unit Root Test in the Presence of Cross-Section Dependence. Journal of Applied Econometrics 22, 265-312. https://doi.org/10.1002/jae.951
  30. Pesaran, M. H. (2021). General Diagnostic Tests for Cross-sectional Dependence in Panels. Empirical Economics 60(1), 13-50. https://doi.org/10.1007/s00181-020-01875-7
  31. Robertson, R. (1992). Globalization: Social Theory and Global Culture. London; Newbury Park, California: SAGE Publications Ltd. https://doi.org/10.4135/9781446280447
  32. Rodrik, D. (1997). Has Globalization Gone Too Far? Washington DC: Institute for International Economics. https://doi.org/10.2307/41165897
  33. Rodrik, D., Subramanian, A., & Trebbi, F. (2004). Institutions Rule: The Primacy of Institutions Over Geography and Integration in Economic Development. Journal of Economic Growth 9(2), 131-165. https://doi.org/10.5089/9781451859621.001
  34. Samimi, P., & Jenatabadi, H. (2014). Globalization and Economic Growth: Empirical Evidence on the Role of Complementarities. PLOS One 9(4): e87824. https://doi.org/10.1371/journal.pone.0087824
  35. Sapkota, J.B. (2011). Globalization and Human Aspect Of Development In Developing Countries: Evidence From Panel Data, Journal of Globalization Studies 2 (1), 78-96. Retrieved from https://www.sociostudies.org/journal/files/jogs/2011_1/globalization_and_human_aspect.pdf on July 1, 2024.
  36. Scholte, J.A. (2000). Globalization: A Critical Introduction, Contemporary Sociology 31(5), 586-587. https://doi.org/10.2307/3090066
  37. Steger, M. B. (2013). Globalization: A Very Short Introduction (3rd ed.). Oxford University Press. https://doi.org/10.1093/ahr/rhz1159
  38. Tamasauskiene, Z., & Žičkienė, S. (2021). An investigation of the nexus between globalisation dimensions and income inequality. Entrepreneurial Business and Economics Review 9(2), 39-53. https://doi.org/10.15678/EBER.2021.090203
  39. Tomlinson, J. (1999). Globalization and Culture. Chicago: University of Chicago Press. https://doi.org/10.1007/978-1-137-28787-8_46
  40. Tov, W., & Diener, E. (2007). Culture and Subjective Well-Being. In S. Kitayama, D. Cohen (Eds.), Handbook of Cultural Psychology (pp. 691-713). New York: Guilford Press. https://doi.org/10.1007/978-90-481-2352-0_2
  41. Tsai, M.-C. (2007). Does Globalization Affect Human Well-Being?. Social Indicators Research, 81(1), 103-126. https://doi.org/10.1007/s11205-006-0017-8
  42. Ulucak, R., Danish & Li, N. (2020). The nexus between economic globalization and human development in Asian countries: an empirical investigation. Environmental Science and Pollution Research International 27, 2622-2629. https://doi.org/10.1007/s11356-019-07224-1
  43. UNDP. (2025). Human Development Index (HDI). Retrieved from https://hdr.undp.org/data-center/human-development-index#/indicies/HDI on July 1, 2025.

Downloads

Download data is not yet available.

Similar Articles

1-10 of 249

You may also start an advanced similarity search for this article.