European Financial and Accounting Journal 2020, 15(1):67-82 | DOI: 10.18267/j.efaj.234

Globalization and Economic Growth: Evidence from European Countries

Aderemi Timothy Ayomitunde1, Ogunleye Akin George2, Lucas B. Ojo3, Okoh Johnson Ifeanyi4
1 Aderemi Timothy Ayomitunde, Department of Economics, Olabisi Onabanjo University, Ago Iwoye, Nigeria
2 Ogunleye Akin George, Department of Economics, Osun State University, Osogbo, Nigeria
3 Lucas B. Ojo, School of Technical Education, Yaba College of Technology, in Affiliation with University of Nigeria, UNN, Usukka, Nigeria
4 Okoh Johnson Ifeanyi, Department of Financial Studies, National Open University of Nigeria, Abuja

This study examined the nexus between globalization and economic growth in European countries from 1990 to 2018 with the application of ARDL and Bounds test. Data was collected from the United Nations Conference on Trade and Development and World Development Indicator, respectively. The major findings that originated from this study are as follows. The lag value of economic growth has a significant positive relationship with its present value. Globalization index variables such as net FDI inflows and trade openness brought about economic growth in the European countries. This shows that the impact of globalization has been positive on the economies of the European countries in the last four decades. Furthermore, due to the emergence of these pertinent findings, the following recommendations are made for the policy makers in the European countries: globalization is a viable platform through which the European economies could achieve a sustainable economic growth in the short run. Therefore, whenever sustainable economic growth is the goal of the European policy makers, implementation of the policies that stimulate sporadic inflows of FDI should be embarked upon. Similarly, trade openness of these countries should be improved through exports of more value-added goods and services.

Keywords: Globalization: FDI; Trade Openness and European Countries.
JEL classification: F43, F62, O15

Received: February 18, 2020; Revised: May 17, 2020; Accepted: July 12, 2020; Published: September 18, 2020  Show citation

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Ayomitunde, A.T., Akin George, O., Ojo, L.B., & Johnson Ifeanyi, O. (2020). Globalization and Economic Growth: Evidence from European Countries. European Financial and Accounting Journal, 15(1), 67-82. doi: 10.18267/j.efaj.234
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