Calculation of the Economic Globalization Index in Iran and its Impact on Human Development Index (HDI)

Document Type : Scientific paper

Authors

1 Assistant Professor, Faculty of Economics and Political Sciences, Shahid Beheshti University

2 Master of Economics, Shahid Beheshti University

Abstract

Globalization is a phenomenon that has caused many changes in people's lives. There are different opinions regarding the effects of globalization on economic growth and development and the human development index. Some believe that globalization will cause global markets to develop, which will increase trade and investment exchanges between countries and improve the Human Development Index. In contrast, others argue that increased exchanges and competition between countries will only make companies want to maximize their profits and pay less attention to improving labor conditions, which can reduce health indicators and increase poverty. It should be noted that the economic globalization index was calculated using the shannon entropy method and simple additive weighting method. The results of the study show that the economic globalization index had an upward trend until 1390, fluctuated between 1390-1397 and started a downward trend from 1397 onwards. In this research, the effect of the economic globalization index on the human development index in Iran for the period 1375-1400 has been investigated. The estimation of the model has been done using the autoregressive distributed lag method (ARDL). Also, the results show that the economic globalization index had a positive and significant effect on the human development index. Other variables of the model i.e. gross domestic product, government expenditure, ratio of urban population to total population and export of goods, services have a positive and significant effect, and inflation has a negative effect on the human development index.

Keywords

Main Subjects

References

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Macroeconomics Research Letter
Volume 18, Issue 40
December 2023
Pages 153-177

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History

  • Receive Date: 24 January 2024
  • Revise Date: 12 February 2024
  • Accept Date: 15 February 2024

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