Does Globalization Affect Growth?

University of Mannheim Working Paper

33 Pages Posted: 16 Dec 2002

Date Written: January 2003


The paper presents an index of globalization covering its three main dimensions: Economic integration, social integration, and political integration. Using panel data for 123 countries in 1970-2000 the effects of the overall index of globalization as well as sub-indexes constructed to measure the single dimensions on economic growth are analyzed empirically. The results show that globalization promotes growth - but not to an extent necessary to reduce poverty on a large scale. The dimensions most robustly related with growth refer to actual economic flows and restrictions in developed countries. Although less robustly, information flows also promote growth whereas political integration has no effect.

Keywords: Globalization, Growth

JEL Classification: H77, O57, F43

Suggested Citation

Dreher, Axel, Does Globalization Affect Growth? (January 2003). University of Mannheim Working Paper, Available at SSRN: or

Axel Dreher (Contact Author)

Heidelberg University ( email )

Grabengasse 1
Heidelberg, 69117


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