Impacts on Economic Foundations During Globalization

Abstract

After three decades of disintegration of the former Union of Soviet Socialist Republics (USSR) and former socialist nations from the Eastern Bloc, the burning issue related to apparent success or failure of globalization and economic transition still persists. This chapter is aimed at formulation of Index of Economic Foundation (IEF) that would help to assess the impact of globalization on a country and how far it has been successful in adapting the model of market economy. In order to serve the purpose, a time series study has been conducted on 10 sample countries spread across Central and Eastern Europe and the independent nation-states that evolved from the disintegration of erstwhile USSR for the time period of 20 years (1996 – 2015) (Base Year = 1995: IEF = 100). The final estimations based on the estimated Present Values (PV) of IEFs' discounted by the values of Gini Coefficient (GIC) on a year-to-year basis for all the sample countries yielded interesting results and findings. The issues of deglobalization and reglobalization were also discussed in reference to year 2020.