The Impact of Economic Globalization on Economic Growth in Developing Countries

Abstract

This research investigates the impact of economic globalization on economic growth in developing countries, highlighting the complexities and varied outcomes associated with global integration. Employing a mixed-methods approach, the study combines quantitative analysis of secondary data from the World Bank and IMF with qualitative case studies of selected developing nations. The findings reveal a positive correlation between trade openness and GDP growth, confirming that countries actively engaging in international trade and attracting foreign direct investment (FDI) tend to experience enhanced economic growth. However, the analysis also identifies significant disparities, with nations such as Vietnam benefiting substantially from globalization, while others like Zimbabwe face stagnation due to weak governance and institutional challenges. Furthermore, the research underscores the risks of increased income inequality and regional disparities that may accompany globalization, emphasizing the need for targeted policy interventions to ensure equitable growth. By illuminating the critical role of governance and institutional quality, this study contributes to the existing literature on globalization and development. The findings provide valuable insights for policymakers seeking to harness globalization for sustainable and inclusive economic growth in developing countries, and highlight areas for future research focused on sector-specific impacts and long-term economic trajectories.