Globalization Is An Opportunity To Enhance Economic Structure

Abstract

This study was carried out to investigate the effect of economic globalization on economic growth in
OIC countries. Furthermore, the study examined the effect of complementary policies on the growth
effect of globalization. It also investigated whether the growth effect of globalization depends on the
income level of countries. Utilizing the generalized method of moments (GMM) estimator within the
framework of a dynamic panel data approach, we provide evidence which suggests that economic
globalization has statistically significant impact on economic growth in OIC countries. The results

indicate that this positive effect is increased in the countries with better-educated workers and well-
developed financial systems. Our finding shows that the effect of economic globalization also depends

on the country’s level of income. High and middle-income countries benefit from globalization
whereas low-income countries do not gain from it. In fact, the countries should receive the
appropriate income level to be benefited from globalization. Economic globalization not only directly
promotes growth but also indirectly does so via complementary reforms.

Keywords: India economy, Globalization, Financial Progression, Globalisation of Economy.
Economic Liberalization, International Economy.