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This paper aims to empirically investigate the dynamic interlinkages among globalization, digitalization and economic development in the top 75 most globalized countries from 2000 to 2019. The selection of the 75 most globalized developing countries is based on the overall scores of the KOF Globalization Index (2021).

The research design is based on secondary data collected from the World Bank (2021), the International Telecommunication Union (2021) and the KOF Globalization Index (2021). The study uses panel unit root tests followed by the panel cointegration techniques. Further, the estimation uses panel fully modified ordinary least squares and panel dynamic ordinary least squares methods.

The empirical results reveal that the effect of globalization on economic development is sensitive to different estimation procedures; in some cases, but not in every case, the effect is positive and significant. However, the positive and significant effect of digitalization on economic development is robust across all estimated models. Long-run equilibrium relationships and bidirectional causalities strongly affirm the nexus among globalization, digitalization and economic development, substantiating the interconnectedness among 75 developing economies.

The study reinstates that the forces of globalization and digitalization will be instrumental in shaping the selected most globalized economies in the long run. Adopting various econometric methodologies takes care of the time-specific and cross-sectional dynamics, as evident in the panel framework considered in this study. The empirical findings truly ascertain the theoretical synergy among the forces of globalization leading to more digitalization and economic development. This makes the empirical interplay highly conducive to framing long-term policies to expand the information communication network in terms of its access and reach.

The paper aims to empirically examine the impact of foreign direct investment (FDI) inflows and digitalization on employment opportunities in selected 70 developing economies across the world over the period of 2001–2019. The same empirical investigations are also carried out on two groups of these developing countries created on the basis of the levels of FDI inflows and digitalization.

The study uses various panel unit root tests followed by the estimations of the generalized method of moments in the dynamic panel framework, using secondary data collected from the World Bank (2020), International Labour Organization (2020) and International Telecommunication Union (2020).

Empirical findings reveal that both FDI inflows and digitalization have positive effects on employment; however, the extent of the impact of digitalization is greater than that of FDI inflows in developing economies, mostly in countries with relatively low FDI inflows and low digitalization.

Conventionally, FDI inflows accelerate economic growth and thus improve the labour market in host countries. However, FDI inflows into developing countries with low-skilled labours may limit job creation, particularly during the process of digitalization. This study shows that despite a much moderate impact of FDI inflows, digital transformation supports a higher employment in developing economies with low level of FDI inflows and digitalization.

This chapter attempts to investigate and analyze the worldwide long-run dynamics among foreign direct investment (FDI) inflow, international trade, and economic growth empirically in the era of globalization. Impact of FDI on economic performances has been a burning topic during the current age. Different theoretical studies viewed both positive and negative impacts of inflow of foreign capital in terms of FDI. We empirically test the relationships among FDI and trade, gross domestic product by using the data for top 20 FDI-hosting countries sourced from UNCTAD in a dynamic panel frame over the period of 1991–2016. The stochastic properties are looked into by carrying out panel data unit root tests developed by Levin, Lin, and Chu (2002) and Im, Pesaran, and Shin (2003). We carry out the generalized method of moments estimates. Empirical findings suggest that inflows of FDI significantly promote economic growth in selected economies.

During the last few decades, there have been significant divergences in the flows of foreign direct investment (FDI) as per decisions taken by multinational companies (MNCs), and many of the developing nations in the Asia and Pacific region are most remarkable in this regard (UNCTAD, 2015). Apart from various economic factors, some sociopolitical issues have also been identified as influencing the FDI decisions. This study investigates the comovements of the standard measures of terrorist activities and MNCs’ decision on FDI in selected developing countries in the Asia and Pacific region by employing Generalized Method of Moment (GMM) estimation technique on constructing a balanced panel for 1990–2016. Results summarize that FDI inflows are negatively influenced by terrorist activities in the developing economies of the Asia and Pacific region.

During the post-globalization period, tariff imposition on manufacturing trade has a possible effect on the economy of developed and developing nations. Along with the volume and balance of trade, the study accounts for both export and import separately in order to observe their dynamisms under the tariff regime and makes comparisons between developing and developed countries. Using the World Development Indicators and World Integrated Trade Solution databases of World Bank (2020) on China (developing nation) and the United States (developed nation) over the period of 1970–2019, the co-integration tests and thereafter vector error correction models indicate that the relationship between tariff and manufacturing trade is positive and statistically significant.

The dynamic effect of globalization on socio-economic disparity measured by the income inequality is always a noteworthy issue of research interests. Globalization is mostly appreciated from the aspect of economic growth, but it has been blamed for influencing the imperfect competition, environmental degradation, economic inequality, etc. Under this backdrop, this chapter seeks to examine the impacts of international trade and informational globalization on income inequality in both developing and developed groups of nations of the world using dynamic panel Generalized Method of Moments (GMM) estimates. The results of first difference dynamic panel GMM estimates imply the analogous impacts of trade and informational globalization on income inequality in both developing and developed groups of nations. However, the financial and political measures of globalization have dissimilar effects on income inequality across developing and developed economies.

There are many channels through which terrorism can influence macroeconomic variables, such as economic growth and international trade. However, the intensity of the consequences of terrorist events on the economy may be varied across countries based on the economic structure. Therefore, it is not unusual for the impacts of terrorism to vary across the developed and developing nations. Against this backdrop, this study assesses the influences of conflicts and terrorist activities on the growth of per capita gross domestic product (GDP) in 21 developed and 23 developing countries from 1970 to 2015. The stochastic properties of the variables are looked into by carrying out panel-specific Augmented Dicky-Fuller (ADF) and Phillips-Peron (PP) unit root test followed by estimating the dynamic regressions equations in structured balanced panel frameworks for selected developed and developing economies separately. This study draws on data from various sources namely, Global Terrorism Database (GTD) and World Development Indicators (WDI; World Bank). Our empirical findings imply that terrorist activities have a significant growth-limiting effect, and the extent and significance of impacts are higher in case of developing economies.

The chapter empirically investigates the effects of tariff imposition on manufacturing trade comparatively in the north and south economies across the globe during the last three decades. Traditionally north and south represent the developed and developing world, respectively. Along with the volume and balance of trade, the study accounts for both export and import separately to observe their dynamisms under the tariff regime and makes comparisons between developing and developed groups of countries. Using World Development Indicators (2019) and World Integrated Trade Solutions (2019) databases on 77 developing and 48 developed nations for 1991–2018, the robust difference panel generalized method of moments estimates imply that impositions of domestic tariffs significantly reduce manufacturing trade in both groups of countries; however, developing countries experience this effect in a greater extent.