Globalization and socio-economic structure: Evidence from selected Asian countries

Abstract

Considering the fact that globalization shapes socio-economic structure, its effects vary substantially across countries and sectors, depending on the nature of globalization. This study assesses empirically the effects of different types of globalization — economic, social and political— on socio-economic structure. The empirical analyses carried out in case of 17 non-oil producing countries of Asia and Eastern Europe covering the time period 1990-2016. This study employs the system generalized method of moment (GMM) as estimation technique. The estimates indicate that all forms of globalization signify their role in the shaping of socio-economic structure of the sample countries. In simple words, more economic, social, and political tied-up country results in an improving of socio-economic structure. The empirical contribution of the paper lies in to two folds.  First, instead of individual indicator, the paper illustrates the effect of globalization on the complete socio-economic structure. To this end, we developed a composite index of socio-economic structure comprising six different socio-economic indicators.  Second, the paper provides empirical indications that how the complete socio-economic structure of a country is affected by different types of globalization— economic, social and political.