Munich Personal RePEc Archive

Exploring Interlinks between Globalization and Governance: A Panel Data Evidence

Nadeem, Muhammad and Hayat, Muhammad Azmat and Nazir, Rabia (2014): Exploring Interlinks between Globalization and Governance: A Panel Data Evidence. Published in: Pakistan Economic and Social Review , Vol. 52, No. 2 (December 2014): pp. 187-208.

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Globalization has always remained a fiery issue among academia and researchers due to lack of consensus on this subject. A potential unresolved issue about globalization is its impact on governance and quality of domestic institutions. The present study is an attempt to explore the relationship between globalization and governance in a panel of 91 countries covering time period from 1984 to 2011. Panel fixed effect model and Generalized Method of Moments (GMM) have been applied for the analysis. Results divulge that globalization has negative and statistically significant effect on governance. Thus, the present study recommends that globalization, if direly needed, must be espoused with a great caution. An effective and efficient liberalization policy is integral to reap benefits of globalization.

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