Globalization and Economic Growth Revisited: A Bootstrap Panel Causality Test

Hsiao-Ping Chu, Tsangyao Chang, Tagi Sagafi-nejad

Abstract


This paper revisits the nature and direction of causation between globalization and economic growth in nine OECD countries and China by applying the bootstrap panel Granger causality test to the data over the period of 1981-2008. Empirical results support evidence on causality from globalization to economic growth for Netherlands and the UK; causality from economic growth to globalization in the US, neutrality for Australia, Belgium, Canada, France, Italy, and Japan. Based on the empirical results from this paper, we provide important policy implications for the OECD countries and China.


Keywords: Globalization; Economic Growth; OECD Countries; China; Bootstrap Panel Causality Test


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DOI: http://dx.doi.org/10.21902/2573-5691/2016.v1i1.4

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