The Relationship between Economic Complexity and Globalization in the BRICS-T Countries: A Panel Data Analysis

Year 2022, Volume: 14 Issue: 26, 92 - 105, 25.05.2022

Çağla Bucak

https://doi.org/10.20990/kilisiibfakademik.1069570

Cited By: 4

Abstract

Purpose: The aim of this paper is to examine the effects of economic, social and political globalization on economic complexity and to develop policy recommendations.
Design/Methodology: In this study, a panel data analysis is conducted by utilizing the economic complexity index, KOF economic globalization index, KOF social globalization index and KOF political globalization index of the BRICS-T countries for the period 1995-2018. For this purpose, Pesaran CD (2004) test, Pesaran and Yamagata (2008) homogeneity test, Pesaran (2007) CADF test, Westerlund (2007) panel co-integration test and Eberhardt and Bond (2009) AMG method are utilized.
Findings: According to empirical findings, there is a co-integration relationship between variables. Empirical results also show that. A unit increase in the economic globalization index increases economic complexity by 0,031 units in Russia. However, the social globalization index decreases economic complexity in Brazil, India, Russia, South Africa and the overall panel. A unit increase in social globalization index decreases economic complexity by 0,025, 0,033, 0,030, 0,015 and 0,014 units, respectively. On the other hand, a unit increase in the social globalization index increases economic complexity by 0,020 units in Turkey. Finally, one unit increase in the political globalization index increases the economic complexity index by 0,038 and 0,083 units in India and Russia, respectively. But, it does not affect the overall panel.
Limitations: The limitation of the study is that the number of countries included in this study and economic complexity index values have been measured for the period 1995-2018.
Originality/Value: There are few studies published on this subject. Also, since the study will be conducted for the most recent period, it will contribute to the literature.

Keywords

Economic Complexity, Globalization, Panel Data Analysis

BRICS-T Ülkelerinde Ekonomik Karmaşıklık ve Küreselleşme İlişkisi: Panel Veri Analizi

Abstract

Amaç: Bu çalışmanın amacı, ekonomik, sosyal ve politik küreselleşmenin ekonomik karmaşıklık üzerindeki etkilerini araştırmak ve gerekli politika önerilerini sunmaktır.
Tasarım/Yöntem: Çalışmada BRICS-T ülkelerinin 1995-2018 dönemindeki ekonomik karmaşıklık endeksi, KOF ekonomik küreselleşme endeksi, KOF sosyal küreselleşme endeksi ve KOF politik küreselleşme endeksi değişkenleri kullanılarak panel veri analizi yapılmıştır. Bu nedenle Pesaran CD (2004) testi, Pesaran ve Yamagata (2008) homojenlik testi, Pesaran (2007) CADF testi, Westerlund (2007) panel eşbütünleşme testi ve Eberhardt ve Bond (2009) AMG yöntemi kullanılmıştır.
Bulgular: Çalışmanın bulgularına göre seriler arasında eşbütünleşme ilişkisi vardır. Rusya’da ekonomik küreselleşmenin artması ekonomik karmaşıklığı artırmaktadır. Ekonomik küreselleşme endeksinde görülen 1 birimlik artış ekonomik karmaşıklığı Rusya’da 0.031 birim artırmaktadır. Brezilya’da, Hindistan’da Rusya’da, Güney Afrika’da ve tüm panelde sosyal küreselleşmenin artması ekonomik karmaşıklığı azaltmaktadır. Sosyal küreselleşme endeksinde görülecek 1 birimlik artış ekonomik karmaşıklıkta sırasıyla 0.025, 0.033, 0.030, 0.015 ve 0.014 birimlik azalmaya yol açmaktadır. Ancak Türkiye’de sosyal küreselleşme endeksinin 1 birim artması ekonomik karmaşıklığı 0.020 birim artırmaktadır. Son olarak Hindistan ve Rusya’da politik küreselleşmede görülen 1 birimlik artış ekonomik karmaşıklığı sırasıyla 0.038 ve 0.083 birim artırmaktadır.
Sınırlılıklar: Çalışmanın sınırlılığı, dahil edilen ülke sayısı ve ekonomik karmaşıklık endeksine ait verilerin 1995-2018 dönemine ait olmasıdır.
Özgünlük/Değer: Bu konuda yayımlanmış çalışma sayısı oldukça azdır. Ayrıca çalışma en güncel dönem için yapılacağından literatüre katkı sağlayacaktır.

Keywords

Ekonomik Karmaşıklık, Küreselleşme, Panel Veri Analizi

References

• Alvarado, R., Tillaguango, B., Dagar, V., Ahmad, M., Işık, C., Mendez, P., & Toledo, E. (2021). Ecological footprint, economic complexity and natural resources rents in Latin America: Empirical evidence using quantile regressions. Journal of Cleaner Production, 318(128585), 1-14. https://doi.org/10.1016/j.jclepro.2021.128585
• Atlas Media. (2021, Temmuz). Country & product complexity rankings. https://atlas.cid.harvard.edu/rankings
• Azimi, N. (2020). Investigating the effect of globalization on the economic complexity of countries. Regional Planning. http://jzpm.miau.ac.ir/article_4248.html?lang=en
• Barış, S., & Barış, A. (2018). Küreselleşme ve ekonomik büyüme ilişkisi: Avrupa Birliği ülkelerinden deliller. In Y. Bayar (Ed.), Proceedings of 4th SCF international conference on economics and social ımpacts of globalization and future Turkey-European Union relations (pp. 63-73).
• Boğa, S. (2019). Ekonomik karmaşıklık seviyesinin ekonomik büyüme üzerine etkisi: Geçiş ülkeleri. Akademik Hassasiyetler, 6(12), 357-386. https://dergipark.org.tr/tr/download/article-file/906990
• Can, M. (2016). Ekonomik küreselleşme sofistike mamül üretimini etkiler mi?: Güney Kore örnekleminde ampirik bir analiz. Eskişehir Osmangazi Üniversitesi İİBF Dergisi, 11(3), 21-38. https://dergipark.org.tr/tr/download/article-file/253199
• Chávez, J. C., Mosqueda, M. T., & Gómez-Zaldívar, M. (2017). Economic complexity and regional growth performance: Evidence from the Mexican economy. The Review of Regional Studies, 47(2), 201-219. https://doi.org/10.52324/001c.8023
• Çeken, H., Ökten, Ş., & Ateşoğlu, L. (2008). Eşitsizliği derinleştiren bir süreç olarak küreselleşme ve yoksulluk. C.Ü. İktisadi ve İdari Bilimler Dergisi, 9(2), 79-95. https://kutuphane.dogus.edu.tr/mvt/pdf.php
• Çeştepe, H., & Çağlar, O. (2017). Ürün sofistikasyonu ve ekonomik büyüme ilişkisi: Panel veri analizi. Uluslararası Yönetim İktisat ve İşletme Dergisi, ICMEB17 Özel Sayısı, 992-1000. https://dergipark.org.tr/tr/download/article-file/1124137
• Doğan, B., Lorente, D. B., & Nasir, M. A. (2020). European commitment to COP21 and the role of energy consumption, FDI, trade and economic complexity in sustaining economic growth. Journal of Environmental Management, 273(111146), 1-10. https://doi.org/10.1016/j.jenvman.2020.111146
• Dreher, A. (2006). Does globalization affect growth? Evidence from a new index of globalization. Applied Economics, 38(10), 1091-1110. https://doi.org/10.1080/00036840500392078
• Dünya Bankası. (2021, Kasım). Dünya gelişmişlik göstergeleri. https://databank.worldbank.org/source/world-development-indicators
• Eberhardt, M., & Bond, S. (2009). Crosssection dependence in nonstationary panel models: A novel estimator. MPRA Paper, No. 17692, 1-26. https://mpra.ub.uni-muenchen.de/17692/1/MPRA_paper_17692.pdf
• Ertan Ö. G., & Oğuş B. A. (2016). Economic convergence in the EU: A complexity approach. Eastern European Economics, 54(2), 93-108. https://doi.org/10.1080/00128775.2015.1126787
• Felipe, J., Kumar, U., Abdon, A., & Bacate, M. (2012). Product complexity and economic development. Structural Change and Economic Dynamics, 23(1), 36-68. https://doi.org/10.1016/j.strueco.2011.08.003
• Gurgul, H., & Lach, L. (2014). Globalization and economic growth: Evidence from two decades of transition in CEE, Economic Modelling 36, 99-107. https://doi.org/10.1016/j.econmod.2013.09.022
• Hausmann, R., Hidalgo, C. A., Bustos, S., Coscia, M., Simoes, A., & Yıldırım, M. A. (2013). The atlas of economic complexity-mapping paths to prosperity. The MIT Press.
• Hayaloğlu, P., Kalaycı, C., & Artan, S. (2015). Küreselleşme farklı gelir grubundaki ülkelerde ekonomik büyümeyi nasıl etkilemektedir?, Eskişehir Osmangazi Üniversitesi İİBF Dergisi, 10(1), 119-152. https://kutuphane.dogus.edu.tr/mvt/pdf.php
• Hidalgo, C. A., & Hausmann, R. (2009). The building blocks of economic complexity. PNAS, 106(26), 10570-10575. https://doi.org/10.1073/pnas.0900943106
• Karakurt, I. (2020). Modelling and forecasting the oil consumptions of the BRICS-T countries. Energy, 220(119720). https://doi.org/10.1016/j.energy.2020.119720
• Kılıç, R., & Aslan, V. (2016). Yenilenebilen ve yenilenemeyen enerjinin iktisadi büyüme üzerindeki etkisi: 28 OECD ülkesi üzerine ampirik bir çalışma. Eskişehir Osmangazi Üniversitesi İİBF Dergisi, 12(1), 1- 12. https://doi.org/10.17153/oguiibf.298715
• Kılıçarslan, Z., & Dumrul, Y. (2018). The impact of globalization on economic growth: Empirical evidence from the Turkey. International Journal of Economics and Financial Issues, 8(5), 115-123. https://www.econjournals.com/index.php/ijefi/article/view/6593/pdf
• Kilic, C. (2015). Effects of globalization on economic growth: Panel data analysis for developing countries, economic insights, Trends and Challenges, IV(1), 1-11. http://upg-bulletin-se.ro/old_site/archive/2015-1/1.Kilic.pdf
• KOF. (2021, Temmuz). KOF globalisation index. https://kof.ethz.ch/en/forecasts-and-indicators/indicators/kof-globalisation-index.html
• Kurt, Ü. (2018). Küreselleşme ve ekonomik kompleksite ilişkisi: Türkiye örneği. Hitit Üniversitesi Sosyal Bilimler Enstitüsü Dergisi, 11(3), 2195-2202. https://doi.org/10.17218/hititsosbil.454395
• Martins, J. M., Adebayo, T. S., Mata, M. N., Oladipupo, S. D., Adeshola, İ., Ahmed, Z., & Correia, A. B. (2021). Modeling the relationship between economic complexity and environmental degradation: Evidence from top seven economic complexity countries. Frontiers in Environmental Science, 9, 1-12. https://doi.org/10.3389/fenvs.2021.744781
• Nathaniel, S. P. (2021). Economic complexity versus ecological footprint in the era of globalization: Evidence from ASEAN countries. Environmental Science and Pollution Research, 28, 64871-64881.https://doi.org/10.1007/s11356-021-15360-w
• Pata, U. K. (2020). Renewable and non-renewable energy consumption, economic complexity, CO2 emissions, and ecological footprint in the USA: Testing the EKC hypothesis with a structural break. Environmental Science and Pollution Research. 28, 846-861. https://doi.org/10.1007/s11356-020-10446-3
• Pesaran, M. H. (2004). General diagnostic tests for cross-sectional dependence in panels. Cambridge Working Papers in Economics 0435, Faculty of Economics, University of Cambridge. https://ideas.repec.org/p/cam/camdae/0435.html
• Pesaran, M. H. (2007). A simple panel unit root test in the presence of cross‐section dependence. Journal of Applied Econometrics, 22, 265-312. https://doi.org/10.1002/jae.951
• Pesaran, M. H., & Yamagata, T. (2008.) Testing slope homogeneity in large panels. Journal of Econometrics, 142(1), 50-93. https://doi.org/10.1016/j.jeconom.2007.05.010
• Potrafke, N. (2015). The evidence on globalisation. The World Economy, 38(3), 509-552. https://doi.org/10.1111/twec.12174
• Roy-Mukherjee, S., & Udeogu, E. (2020). Neo-liberal globalization and income inequality: Panel data evidence from OECD and Western Balkan Countries. Journal of Balkan and Near Eastern Studies, 23(1),1-25. https://doi.org/10.1080/19448953.2020.1852004
• Samimi, P., & Jenatabadi, H. S. (2014). Globalization and economic growth: Empirical evidence on the role of complementarities. Plos One, 9(4), 1-7. https://doi.org/10.1371/journal.pone.0087824
• Sadeghzadeh, K. (2019). Borsa endekslerinin ülke risklerine duyarlılığı: Seçilmiş ülkeler üzerine analizler. Atatürk Üniversitesi İktisadi ve İdari Bilimler Dergisi, 33(2), 435-450. https://dergipark.org.tr/tr/download/article-file/683294
• Soyyiğit, S. (2018). OECD kurucu ülkelerinde ekonomik kompleksite düzeyi ile kişi başına düşen GSYH arasındaki ilişki: Panel eşbütünleşme analizi. Selçuk Üniversitesi Sosyal Bilimler Meslek Yüksekokulu Dergisi, 21(2), 374-392. https://dergipark.org.tr/tr/download/article-file/572000
• Stojkoski, V., & Kocarev, L. (2017). The relationship between growth and economic complexity: Evidence from Southeastern and Central Europe. Munich Personal RePEc Archive, Paper No. 77837. https://mpra.ub.uni-muenchen.de/77837/3/MPRA_paper_77837.pdf
• Suci, S. C., Asmara, A., & Mulatsih, S. (2015). The impact of globalization on economic growth in ASEAN. International Journal of Administrative Science & Organization, 22(2), 79-87. http://digilib.mercubuana.ac.id/manager/t!@file_artikel_abstrak/Isi_Artikel_583559021832.pdf
• Swamy, P. A. (1970). Efficient inference in a random coefficient regression model. Econometrica: Journal of the Econometric Society, 38(2), 311-323. https://doi.org/10.2307/1913012
• Ulucak, R. (2019). The effect of globalization on economic growth: Evidence from emerging economies. In B. Christiansen, I. Sysoeva, A. Udovikina, & A. Ketova (Eds.), Emerging economic models for global sustainability and social development (pp. 1-19). IGI Global. https://doi.org/10.4018/978-1-5225-5787-6.ch001
• Üçler, G. (2017). Doğrudan yabancı yatırımlar için kurumların önemi: Gelişmekte olan ülkeler üzerine ekonometrik bir analiz. Finans Politik & Ekonomik Yorumlar, 54(627), 73-85. http://www.ekonomikyorumlar.com.tr/files/articles/152820006593_5.pdf
• Villaverde, J., & Maza, A. (2011). Globalization, growth and convergence. World Economy, 34(6), 952-971. https://doi.org/10.1111/j.1467-9701.2011.01359.x
• Westerlund, J. (2007). Testing for error correction in panel data. Oxford Bulletin of Economics and Statistics, 69(6), 709-748. https://doi.org/10.1111/j.1468-0084.2007.00477.x
• Yalta, Y. A., & Yalta, T. (2021). Determinants of economic complexity in MENA Countries. Journal of Emerging Economies and Policy, 6(1), 5-16. https://dergipark.org.tr/en/download/article-file/1393809
• Yu, Y., & Qayyum, M. (2021). Impacts of financial openness on economic complexity: Cross-country evidence. WILEY, 1-13. https://doi.org/10.1002/ijfe.2491
• Zhu, S. & Li, R. (2017). Economic complexity, human capital and economic growth: Empirical research based on cross-country panel data. Applied Economics, 49(38), 3815-3828. https://doi.org/10.1080/00036846.2016.1270413