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Corresponding Author:
Cândida Ferreira, Lisbon School of Economics and Management, Universidade de Lisboa and UECE – Research Unit in Complexity and Economics, Lisboa, Portugal

Globalisation and Economic Growth: A Panel Data Approach

(pp. 187-236)
JEL classification: C22, E10, F41, F62
Keywords: Economic Growth, Globalisation, KOF Globalisation Index, Cointegration, Panel Estimations


Using different kinds of panel unit root and cointegration tests as well as panel estimations this paper seeks to improve upon the existing literature by analysing the relationship between globalisation and economic growth in 87 countries across all continents over the period 1970–2016. The results obtained confirm the existence of long-run relationships between the real GDP per capita and all the indices included in the new version of the KOF globalisation index as well as that globalisation is clearly relevant to economic growth. Moreover, there is evidence that this is a very complex relationship, being hard to conclude that globalisation always benefits economic growth. In addition, the comparison of the results obtained for the whole sample including 87 countries and those obtained for the sub-sample of the 16 European countries do not provide clear demonstration that the geographic proximity or the recent process of European integration are very relevant in terms of the contribution of globalisation to economic growth.

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