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Co-integration Between Globalisation and Economic Growth

Cândida Ferreira

Abstract


This paper analyses the co-integration relationship between globalisation and economic
growth of 27 more or less developed countries across almost all Continents for the time period
1970–2013. Globalisation is proxied by the overall globalisation index and the sub-indices
representing economic globalisation, social globalisation and political globalisation, all
provided by the Swiss Economic Institute. Economic growth is measured through the natural
logarithm of the real Gross Domestic Product, sourced from the World Development
Indicators which are provided by the World Bank. Co-integration is tested with quantile cointegration regressions. The results obtained clearly confirm the existence of non-linear cointegration relationships between the considered globalisation indices and the real economic
growth.

Keywords


Economic growth; globalisation; KOF globalisation indices; co-integration; quantile regressions.

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DOI: http://dx.doi.org/10.18686/fm.v2i2.917

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