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GLOBALIZATION AND MAIN TRENDS OF GLOBAL ECONOMIC PERFORMANCE: TRADE AND INVESTMENTS
Authors: Emir Eteria
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Globalization and its impact on developing and transition economies are among most debated issues in social sciences. Globalization is multidimensional, multipart and multispeed phenomena affecting all countries and nations in the world. However, economic dimension of globalization could be considered as foundation as well as determinant of development of other forms of globalization, including political and social globalization. It is obvious, that economic globalization intensifies cooperation as well as competition on regional and global level and therefore, enhances economic and political interdependence among countries.
There are many conflicting approaches towards globalization. However, a leading form of globalization still is neoliberal globalization, while other perspectives are opposing ideas to neoliberal globalization. A fundamental idea of neoliberal economic globalization is socalled “small government” and openness for trade and investment, which has been considered as a necessary precondition for economic development of any nation in the world since 1980s. Noteworthy, that major negative aspects of neoliberal globalization, underlined by “skeptics” are negative effects of neoliberal globalization on trade and investment performance of developing and transition economies.
Conducted analysis of trade and investment performance of developing and transition economies demonstrates their growing involvement in globalizing world economy. Ac- cording to data of the United Nations Conference on Trade and Development (UNCTAD), during 1990-2018, exports an- nual average growth rates of developing and transition countries were 9,5% and 8,8% respectively, while exports annual average growth rate of developed countries was 5,7%. More - over, in 1990-2018, imports annual average growth rates of developing and transition countries were 9,3% and 7,7% respectively, while imports average growth rate of developed countries was 5, 9%. It is clear, that besides trade, Foreign Direct Investment is the major indicator to evaluate countries/ country groups’ involvement in globalization. Noteworthy, that between 1990 and 2000 average share of developing countries in world Foreign Direct Investments (inward) was 29,3%, in 2001-2010 was 34, 4%, while in 2011-2018 aver- age share was 44, 2%. In 2018, developing countries share in inward world Foreign Direct Investments was 54, 4%, while developed countries share was 42, 9%. It is clear, that countries/country groups’ involvement in the international capital movement and in globalization processes in general, depends not only on inward Foreign Direct Investments, but also on outward FDIs. In 1990-2000, average share of developing countries in outward FDIs was 10,4%, in 2001-2010 was 14,1%, while in 2011-2018 average share of developing countries in outward world FDIs significantly increased and reached 30,1%. The data underlines an intensification of trade relations of transition and developing countries as well as their increased openness for Foreign Direct Investments and rising share in outward world FDIs.
As a result, during 1990-2018, developing and transition countries involvement in globalizing world economy significantly increased via increased trade relations and growing participation in movement of Foreign Direct Investments. Consequently, despite some setbacks, economic globalization remains as the leading characteristic of the world economic development and process of deglobalization is not evident.