The Impact of Globalization on Economic Performance in Selected Arab Countries for the Period 2000-2021

• Post by: Muthanna mjdes
• June 3, 2023
• Comments off

Mudrika Thanon Yahya

ABSTRACT

Contemporary international economic changes dubbed (globalization) aimed at liberalizing foreign trade and removing subsidies on exports have led to undesirable economic effects on the economies of developing countries represented in the decline in the values of their gross domestic product and thus the low efficiency of their economic performance represented by economic growth. The slow and increasing disparity in the distribution of incomes, the high levels of external debt, the lax rates of demand for its production, its dependence on one or two commodities in export, and the consequent fluctuations in the prices of its exports in the global market. So the research aims to measure and interpret the impact of globalization on economic performance and in a number of countries Arab countries represented in (Egypt, Jordan and Morocco) during the period 2000-2021, based on the hypothesis that globalization has different effects on economic performance in the countries of the research sample.  According to the nature of their economic structures and the efficiency of their systems in dealing with globalization policies. The research relied on the ARDL model to conduct regression using time series data for the mentioned period and for the countries of the research sample. The results shewed a significant effect of the import variable X3 and the deficit values in the general budget of the state X5 in Egypt, and the significant effect of the foreign exchange rate X1 appeared in all countries of the research sample, as well as the effect appeared.  The significant effect of the values of exports X2 in Jordan and the significant impact of the values of foreign direct investment X4 in Jordan and Morocco, and the effect of the variable of exports X2 did not appear in Egypt and Morocco. The effect of foreign direct investment X4 in Egypt and the deficit values in the state’s general budget X5 in Morocco did not appear to affect the values of the gross domestic product of the countries of the research sample. The study included several conclusions.  The most important of which was the low share of the countries of the research sample in exports due to the nature of the restrictions imposed on their local industries, which caused an increase in unemployment rates and a reduction in their economic growth rates. As for the most important recommendations, they adopt policies a rational economy that leads to expanding the scope of domestic and foreign investments and employing investment returns, exports and foreign loans in sectors that are characterized by a decline.  As well as the ratio of capital to output in order to raise the rates of production in it and to reflect its impact on increasing the efficiency of the economic performance of the countries of the research sample.

Keywords: Globalization, Economic performance, Arab countries.

Volume 13, Issue 1, Pages 178-202

DOI: 10.52113/6/2023-13-1/178-202