May 2017 – CCJ, Volume. 1, Pg 30-44
Globalization and Economic Growth Revisited: A Bootstrap Panel Causality Test
by Hsiao-Ping Chu, Tsangyao Chang and Tagi Sagafi-nejad
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
Ph.D.(Utat State University)
Professor, Department of Finance
Research Interest Economics、Behavioral Finance、Applied Econometric Time Series Analysis
Department of Business Administration Ling-Tung University, Taichung, TAIWAN
The Radcliffe Killam Distinguished Professor of International Business, Director of the Center for the Study of Western Hemispheric Trade and the Internationals Trade Institute, and Founding Director of Ph.D. in International Business at Texas A&M International University.