Economic Development of Countries and Formation of International Business Relations under the Influence of Globalization

Назва журналу
Номер ISSN
Назва тому
Economic Affairs
The impact of globalization extends to various aspects of a country’s development, including its economic, social, political, and technological dimensions. In turn, these dimensions play a crucial role in shaping the potential for economic growth. This article aims to evaluate the interdependencies among globalization, economic growth, and international business relations. The research methodology employed in this study involves a statistical analysis of regional economic growth, focusing on the dynamics of GDP, trade indicators spanning the years 2000 to 2022, as well as the economic dimensions of the KOFGI Globalization Index, specifically trade and financial aspects. The findings of this study underscore the intricate nature of the interconnections and dependencies existing between globalization, economic growth, and international business relations. These interconnections are intricately linked to the exchange of technologies, knowledge, investments, and the rapid advancements observed in information and communication technology (ICT). The complex nature of these interconnections has a direct impact on the pace of economic growth and shapes the strategic policies pursued by countries in their pursuit of strengthened cooperation and the identification of new collaborative partners, thereby synergizing national resources. While the period from 2000 to 2015 witnessed notable integration processes, the subsequent years from 2016 to 2020 were marked by global processes of de-globalization. This reorganization stemmed from a decline in the dynamics of industrial production and was further exacerbated by trade conflicts between major players such as the United States and China. However, a shift has been observed in the years 2021-2022, where the share of exports and imports of goods and services is projected to experience dynamic growth. In addition to the observed decline in globalization, there has been a notable deceleration in economic growth from 2016 to 2020. The presence of imbalances in international economic relations, particularly in terms of exports and imports, has contributed to disparities in globalization dimensions across various regions. North America is characterized by a dominant presence of de jure economic globalization, encompassing both trade-related aspects and de facto and de jure financial globalization. On the other hand, Europe and Central Asia exhibit a prevailing influence of de jure economic globalization, primarily in terms of trade, along with de facto financial globalization. Generally, from 2010 to 2020, there has been an upward trend in the level of de jure globalization. However, the level of de facto trade globalization has experienced a decline during this period. Meanwhile, the level of de facto financial globalization has continued to grow.
Ключові слова
Globalization, economic growth, trade globalization, financial globalization, international relations, integration. Глобалізація, економічне зростання, глобалізація торгівлі, фінансова глобалізація, міжнародні відносини, інтеграція.
Бібліографічний опис
Nebozhenko, T., Rassadnykova, S., Lvova, I., Palii, S. and Marushchak, S. (2023). Economic Development of Countries and Formation of International Business Relations under the Influence of Globalization. Econ. Aff., 68(03): 1577-1588.