Skip to main content
SpringerLink
Log in

Globalisation and human development: Does export type matter?

  • Published:
Quality & Quantity Aims and scope Submit manuscript

Abstract

The investigation into the direct effect of export type on an expanded conception of societal progress such as human development has received little attention in terms of empirical research. As part of the globalisation process, the export type can be a fundamental element in fostering human development. This study investigates the effects of export type on human development for the period 2009 to 2014 in a sample of 107 countries, chosen in terms of the magnitude of their exports of high technology products, fuel, ores and agricultural raw materials. Using a reduced form equation explaining human development and adopting the fixed, random and instrumental variable methods of estimation; the exports of fuel, ores and high technology products are confirmed to be positively and statistically significantly correlated (r = 0.020 for fuel; 0.050 for ores and 0.090 for high technology goods) with human development. The findings reveal that the export-type variables among others, satisfactorily explain human development with a coefficient of determination ranging from 0.460 (high technology exports), 0.600 (ore exports) and 0.710 (fuel exports). The main policy implication of these findings in that countries adopting export diversification such as producing goods with high technological content can bring about improvements in human development.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Similar content being viewed by others

References

  • Alexander, C., Warwick, K.: Governments, exports and growth: responding to the challenges and opportunities of globalisation. World Econ. 30, 177–194 (2007)

    Article  Google Scholar 

  • Amri, F.: Renewable and non-renewable energy and trade in developed and developing countries. Qual. Quant. 53(1), 377–387 (2019)

    Article  Google Scholar 

  • Anand, S., Sen, A.: Human development and economic sustainability. World Dev. 28(12), 2029– 2049 (2000)

    Article  Google Scholar 

  • Anderson, K., Cockburn, J., Martin, W.: Agricultural Price Distortions, Inequality, and Poverty. World Bank, Washington, DC (2010)

    Book  Google Scholar 

  • Babatunde, M.A., Oyeranti, O.A., Bankole, O.A., Ogunkola, E.O.: Exports trade, employment and poverty reduction in Nigeria. Int. J. Soc. Econ. 39(11), 875–899 (2012)

    Article  Google Scholar 

  • Balassa, B.: Exports, policy choices and economic growth in developing countries after the 1973 oil shock. J. Dev. Econ. 18(1), 23–35 (1985)

    Article  Google Scholar 

  • Baltzer, M., Baten, J.: Height, trade, and inequality in the Latin American periphery, 1950–2000. Econ. Hum. Biol. 6, 191–203 (2008)

    Article  Google Scholar 

  • Barro, R. J.: Determinants of Economic Growth: A Cross-Country Empirical Study. MIT Press, Cambridge, MA (1997)

    Google Scholar 

  • Begum, S., Shamsuddin, A.F.M.: Exports and economic growth in Bangladesh. J. Dev. Stud. 35(1), 89–114 (1998)

    Article  Google Scholar 

  • Cutler, D., Deaton, A., Lleras-Muney, A.: The determinants of mortality. J. Econ. Perspectives 20, 97–120 (2006)

    Article  Google Scholar 

  • Delgado, C.L.: Agricultural diversification and export promotion in sub-Saharan Africa. Food Policy 20(3), 225–243 (1995)

    Article  Google Scholar 

  • Dowrick, S., Golley, J.: Trade openness and growth: who benefits? Oxford Rev. Econ. Policy 20(1), 38–56 (2004)

    Article  Google Scholar 

  • Eagger, G., Swinburn, B., Islam, F.M.A.: Economic growth and obesity: an interesting relationship with worldwide implications. Econ. Hum. Biol. 10, 147–153 (2012)

    Article  Google Scholar 

  • Easterly, W., Reshef, A., Schwenkenberg, J.: The power of exports. Policy Research Working Paper 5081. The World Bank, Washington, DC (2009)

  • Estrada, M.A.R., Park, D., Khan, A., Tahir, M.: Is terrorism, poverty and refugees that dark side of globalisation. Qual. Quant. (2019). https://doi.org/10.1007/s11135-019-00839-z

    Article  Google Scholar 

  • Etile, F.: Education policies and health inequalities: evidence from changes in the distribution of body mass index in France, 1981–2003. Econ. Hum. Biol. 13, 46–65 (2014)

    Article  Google Scholar 

  • Evans, P.: The eclipse of the state? Reflections on stateness in an era of Globalisation. World Politics 50(1), 62–87 (1997)

    Article  Google Scholar 

  • Fosu, A.K.: Export composition and the impact of exports on economic growth of developing economies. Econ. Lett. 34(1), 67–71 (1990)

    Article  Google Scholar 

  • Frankel, J., Romer, D.: Does trade cause growth? Am. Econ. Rev. 89(3), 379–399 (1999)

    Article  Google Scholar 

  • Funke, M., Ruhwedel, R.: Export variety and export performance: empirical evidence from Asia. J. Asian Econ. 12(4), 493–505 (2001)

    Article  Google Scholar 

  • Gallardo-Albarran, D.: Health and economic development since 1900. Econ. Hum. Biol. 31, 228–237 (2018)

    Article  Google Scholar 

  • Gani, A., Scrimgeour, F.: New Zealand’s trade with Asia and the role of good governance. Int. Rev. Econ. Finance 42, 36–53 (2016)

    Article  Google Scholar 

  • Ghatak, S., Milner, C., Uttachu, U.: Exports, export composition and growth: cointegration and causality evidence from Malaysia. Appl. Econ. 29(2), 213–223 (1997)

    Article  Google Scholar 

  • Giles, J.A., Williams, C.L.: Export-led growth: a survey of the empirical literature and some non-causality results. Part 1. J. Int. Trade Econ. Dev. 9(3), 261–337 (2000)

    Article  Google Scholar 

  • Greenaway, D., Morgan, W., Wright, P.: Trade liberalisation and growth in developing countries. J. Dev. Econ. 67(1), 229–244 (2002)

    Article  Google Scholar 

  • Grossman, G., Helpman, E.: Innovation and Growth in the Global Economy. MIT Press, Cambridge, MA (1991)

    Google Scholar 

  • Gunther, I., Fink, G.: Water, sanitation and children’s’ health: evidence from 172 DHS surveys. Policy Research Working Paper 5275, World Bank. Washington, D.C (2010)

  • Ha, E.: Globalisation, veto players, and welfare spending. Comp. Polit. Stud. 41(6), 783–813 (2008)

    Article  Google Scholar 

  • Haggard, S.: Democratic institutions and economic policy. In: Clague, C. (ed.) Institutions and Economic Development. John Hopkins Press, Baltimore (1997)

    Google Scholar 

  • Hausmann, R., Hwang, J., Rodrik, D.C.: What you export matters? J. Econ. Growth 12(1), 1–25 (2007)

    Article  Google Scholar 

  • Herzer, D., Nowak-Lehnmann, D.F.: What does export diversification do for growth? An econometric analysis. Appl. Econ. 38, 1825–1838 (2006)

    Article  Google Scholar 

  • Jarreau, J., Poncet, S.: Export sophistication or economic growth: evidence from China. J. Dev. Econ. 97(2), 281–292 (2012)

    Article  Google Scholar 

  • Karmack, A.M.: The Tropics and Economic Development. John Hopkins University Press, Baltimore, MD (1976)

    Google Scholar 

  • Karoui, K., Feki, R.: Does gender inequality reduce growth and development economics? Evidence for a panel from African countries. Qual. Quant. 52(5), 2055–2061 (2018)

    Article  Google Scholar 

  • Kilkenny, M., Partridge, M.D.: Export sectors and rural development. Am. J. Agric. Econ. 91(4), 910–929 (2009)

    Article  Google Scholar 

  • Krugman, P.: The narrow moving band: the Dutch disease and the competitive consequences of Mrs Thatcher: notes on trade in the presence of dynamic scale economies. J. Dev. Econ. 27(1–2), 41–55 (1987)

    Article  Google Scholar 

  • Kuznets, S.: Innovations and adjustment in economic growth. Swed. J. Econ. 74(4), 431–451 (1972)

    Article  Google Scholar 

  • Kuznets, S.: Modern economic growth: findings and reflections. Am. Econ. Rev. 63(3), 247–258 (1973)

    Google Scholar 

  • Lee, J.: Export specialisation and economic growth around the world. Econ. Syst. 35(1), 45–63 (2011)

    Article  Google Scholar 

  • Maertens, M., Minten, B., Swinnen, J.: Modern food supply chains and development evidence from horticulture exports sectors in sub-Saharan Africa. Dev. Policy Rev. 30(4), 473–497 (2012)

    Article  Google Scholar 

  • Mahmood, K., Munir, S.: Agricultural exports and economic growth in Pakistan. Qual. Quant. 52(4), 1561–1574 (2018)

    Article  Google Scholar 

  • Maroof, Z., Hussain, S., Jawad, M., Naz, M.: Determinants of industrial development: a panel analysis of South Asian Economies. Qual. Quant. (2018). https://doi.org/10.1007/s11135-018-0820-8

    Article  Google Scholar 

  • Matsuyama, K.: Agriculture productivity, comparative advantage and economic growth. J. Econ. Theory 59(2), 317–334 (1992)

    Article  Google Scholar 

  • Naude, W., Bosker, M., Matthee, M.: Export specialisation and local economic growth. World Econ. 33(4), 552–572 (2010)

    Article  Google Scholar 

  • Onaran, C.B.O.: The effect of export-oriented growth on the female labour Market outcomes in Turkey. World Dev. 32(8), 1375–1393 (2004)

    Article  Google Scholar 

  • Ozturk, I.: The dynamic relationship between agricultural sustainability and food-energy-water poverty in a panel of selected Sub-Saharan African countries. Energy Policy 107, 289–299 (2017a)

    Article  Google Scholar 

  • Ozturk, I.: Measuring the impact of alternative and energy consumption, carbon dioxide emissions and oil rents in specific growth factors in the panel of Latin American countries. Prog. Nucl. Energy 100, 71–81 (2017b)

    Article  Google Scholar 

  • Ozturk, I., Arisoy, I.: An estimate of crude oil import demand in Turkey: evidence from the time-varying parameters approach. Energy Policy 99, 174–179 (2016)

    Article  Google Scholar 

  • Papyrakis, E., Covarrubias, A., Verschoor, A.: Gender and trade aspects of labour market. J. Dev. Stud. 48(1), 81–98 (2012)

    Article  Google Scholar 

  • Park, J.H., Prime, P.B.C.: Export performance and growth in China. Appl. Econ. 29(10), 1353–1363 (1997)

    Article  Google Scholar 

  • Parteka, A., Tamberi, M.: What determines export diversification in the development process? Empirical assessment. World Econ. 36(6), 807–826 (2013)

    Article  Google Scholar 

  • Peneva, D., Ram, R.: Trade policy and human development: a cross country perspective. Int. J. Soc. Econ. 40(1), 51–67 (2012)

    Article  Google Scholar 

  • Perez-Moreno, S., Balanco-Arana, M.C., Barcena-Martin, E.: Economic cycles and child mortality: a cross-national study of the least developed countries. Econ. Hum. Biol. 22, 14–23 (2016)

    Article  Google Scholar 

  • Polo, V.U.: Export composition and growth of selected low-income African countries: evidence from time-series data. Appl. Econ. 26(5), 445–449 (1994)

    Article  Google Scholar 

  • Prebisch, R.: The Economic Development of Latin America and its Principal Problems. New York, United Nations (1950)

  • Ram, R.: Tropics and economic development: an empirical investigation. World Dev. 25(9), 1443–1452 (1997)

    Article  Google Scholar 

  • Ranis, G., Stewart, F., Ramirez, A.: Economic growth and human development. World Dev. 28(2), 197–219 (2000)

    Article  Google Scholar 

  • Reich, R.: The Work of Nations: Preparing Ourselves for 21st-Century Capitalism. Vintage, New York (1992)

    Google Scholar 

  • Rodrik, D.: Closing the technology gap: does trade liberalisation really help? In: Helleiner, G. (ed.) Trade Policy, Industrialisation, and Development: New Perspectives. Clarendon Press, Oxford (1991)

    Google Scholar 

  • Ruggie, J.G.: International regimes, transactions, and change: embedded liberalism in the postwar economic order. Int. Org. 36(2), 379–415 (1982)

    Article  Google Scholar 

  • Sachs, J.D. (2001): Tropical underdevelopment, NBER Working Paper 8119, National Bureau of Economic Research, Cambridge, MA (2001)

  • Saviotti, P.P., Freeken, K.: Export variety and economic performance of countries. J. Evolut. Econ. 18(2), 201–218 (2008)

    Article  Google Scholar 

  • Schultz, T.P.: Productive benefits of health: evidence from low-income countries. In: Lopez-Casasnovas, G., Rivera, B., Currais, L. (eds.) Health and Economic Growth: Findings and Policy Implications, pp. 257–285. MIT Press, Cambridge, MA (2005)

    Google Scholar 

  • Sen, A.: Mortality as an indicator of economic success and failure. Econ. J. 108, 1–25 (1998)

    Article  Google Scholar 

  • Sen, A. The possibility of social choice. Am. Econ. Rev. 89(3), 349–378 (1999)

    Article  Google Scholar 

  • Singer, H.: The distributions of gains between investing and borrowing countries. Am. Econ. Rev. 40, 473–485 (1950)

    Google Scholar 

  • Smith, R.B.: Global human development: accounting for its regional disparities. Qual. Quant. 43(1), 1–34 (2009)

    Article  Google Scholar 

  • Stroup, M.D.: Economic freedom, democracy and the quality of life. World Dev. 35(1), 52–66 (2006)

    Article  Google Scholar 

  • Suri, T., Boozer, M.A., Ranis, G., Stewart, F.: Path to success: the relationship between human development and economic growth. World Dev. 39(4), 506–522 (2010)

    Article  Google Scholar 

  • Terzi, S., Trezzini, A., Moroni, L.: A PLS path model to investigate the relations between institutions and human development. Qual. Quant. 48(3), 1271–1290 (2014)

    Article  Google Scholar 

  • Thornton, J.: Cointegration, causality and export-led growth in Mexico. Econ. Lett. 50(3), 413–416 (1996)

    Article  Google Scholar 

  • United Nations Development Program: Human Development Report 1996. United Nations, New York, NY (1996)

    Book  Google Scholar 

  • Wolf, M.: Why Globalisation Works?. Yale University Press, New Haven (2004)

    Google Scholar 

  • Yay, G.G., Aksoy, T.: Globalisation and the welfare state. Qual. Quant. 52(3), 1015–1040 (2018)

    Article  Google Scholar 

  • Zwane, A.P., Kremer, M.: What works in fighting diarrheal diseases in developing countries? A critical review. World Bank Res. Observer 22(1), 1–24 (2007)

    Article  Google Scholar 

Download references

Acknowledgement

The author is grateful to anonymous referees for their useful comments on an earlier draft.

Author information

Authors and Affiliations

  1. Department of Economics and Finance, College of Economics and Political Science, P.O. Box 20, Al Khod 123, Muscat, Oman

    Azmat Gani

Authors
  1. Azmat Gani
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Azmat Gani.

Additional information

Publisher's Note

Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Gani, A. Globalisation and human development: Does export type matter?. Qual Quant 53, 2235–2251 (2019). https://doi.org/10.1007/s11135-019-00868-8

Download citation

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s11135-019-00868-8

Keywords

JEL Classification

Search

Navigation