The Effect of Globalization on Total Factor Productivity (Case Study: Iran and selected countries of Islamic Conference Organization)
Subject Areas : Business Management
Seyedali
Payetakhti oskoye
1
(Faculty Member, Economics Department, Tabriz Branch, Islamic Azad University, Tabriz, Iran)
Laleh
Tabagchi akbare
2
(Graduate Student of Economics, Islamic Azad University, Tabriz Branch, Young and Elite Research Club, Tabriz, Iran.)
Keywords: Productivity, C33, Globalization, Panel Cointegration Technique JEL Classification: F00, O4,
Abstract :
Today, globalization has created new opportunities and challenges for various countries through economic liberalization, foreign investment, capital flow, information exchange, and technological change.In this paper, the impact of globalization on the total productivity of factors of production has been studied for the selected 16 countries of OIC during the period 1990 to 2011. In order to estimate the effects of variables, panel cointegration technique with Dynamic Ordinary Least Squares (DOLS) method has been employed. Empirical results show that globalization and professional labour have a positive effect on the total productivity of factors of production. However, the influence of inflation and world financial crisis is negative.
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- Amini, A; Rismanchi, H and Farhadi Kia, A. (2010), “Analyzing the Role of Foreign Direct Investment (FDI) in Promoting Total Productivity Productivity (TFP); An Interagency Panel Data Analysis”, Quarterly Journal of Economic Research, N 43, 55- 80.
- Behkish, M. (2002), “Iran's economy in the context of globalization”, Tehran, Ney publication.
- Hejazi, M. (2003), “A sociological approach to the process of secularization in the era of globalization,”, The fourth congress of the country's religious scholars., Ghom.
- Hozar Moghadam, N and Abdoli, G. (2013), “Investigating the Effects of Trade Liberalization on the Productivity of the Industrial Sector”, Quarterly journal of economic strategy, N 4. 7- 38.
- Shojaee Zand, A. (2003), “Globalization and Religion: Opportunities and Challenges”, Qom: The 4th Congress of Religious Studies in the Country.
- Ghorji, E and Borhani Pur, M. (2008), “Effect of Globalization on Income Distribution in Iran”, Iranian Journal of Economic Research, N 34, 99- 124.
- Malek, M. (2009), “The Globalization of Economics from Dream to Reality”, The Young Andisheh Center.
- Mobarak, A and Mohamd Lu, N. (2011), “Effects of Commercial Policy and Oil Revenues on Total Productivity of OPEC OPEC Governments”, Quarterly Journal of Modern Economics and Business, N 13, 141- 161.
- Najarzadeh, R; Tamanayi Far, S. (2012), “The Effect of Trade Liberalization on Total Productivity Productivity in the Selected Group of the Organization of the Islamic Conference”, Quarterly Journal of Modern Economics and Business, N 25, 53- 72.
- Baltabaev, B. (2013), ((FDI and Total Factor Productivity Growth: New Macro Evidence, MonashUniversity)), Discussion Paper 27/13, PP. 1-51.
- Dreher, A. (2006), ((Does Globalization Affect Growth? Empirical Evidence from a new Index)), Applied Economics 38, 10, pp. 1091-1110.
- Ilboudo, P. S. (2014), ((Foreign Direct Investment and Total Factor Productivity in the Mining Sector: the Case of Chile)), Economics Thesis, ConnecticutCollege.
- International Monetary Fund (1997), World Economic Outlook, May, Washington, p. 45
- Kao, C. & Chiang, M. (1999), ((On the Estimation and Inference of a Cointegrated Regression in Panel Data)), Working Paper, Center for Policy Research, Syracuse University, New York, No. 2
- Majeed, S., Ahmed, Q. M. & Sabihuddin Butt, M. (2010), ((Trade liberalization and total factor productivity growth (1971-2007))), Pakistan Economic and Social Review, No. 1, PP. 61-84
- Penn World TableVersion 8.0. (2014), Center for International Comparrisons of Production, Income and Prices at the Univercity of Pennsylvania, Retrieved from http://www. Ggdc.net/pwt.
- Swiss Economic Institute. (2014), KOF Index of Globalization, Retrieved from http://globalization.kof.ethz.ch/.
- Temenggung, D. (2006), ((Productivity Spillovers from Foreign Direct Investment: Indonesian Manufacturing Industry's Experience 1975-2000)), Economics Division, No. 2617, PP. 1-43.
- World Bank. (2014), World Development Indicators, Retrieved from http://www.worldbank.org/data/onlinedatabases.html.
