DYNAMIC RELATIONSHIPS AMONG DIMENSIONS OF GLOBALIZATION: ECONOMETRIC ANALYSIS ON COUNTRY INCOME GROUPS

Abstract

Globalization is a multidimensional phenomenon that includes economic, political, and cultural dimensions. The globalization process is shaped by the intertwined interactions of its dimensions. In this context, the main purpose of this study is to analyze the long–run relationships among economic, cultural, and political globalization according to country income groups worldwide and to investigate how they interact with each other. The study covers the period 1980–2020. Long–run relationships among the dimensions of globalization were analyzed with Johansen cointegration test. Long–run coefficients were estimated using FMOLS method. According to the findings obtained from the study, long–run relationships were determined among the dimensions of globalization. It was observed that the direction and degree of the relationships among the dimensions of globalization may differ depending on the income levels of countries. In all income groups, it was determined that political globalization and both economic and cultural globalization positive affect each other. It was determined that the interactions between economic and cultural globalization differed significantly according to country income groups. In general, the findings indicate that political integration promotes globalization processes, while economic and cultural integration processes support political integration.