Corporate Wealth and Socioeconomic Conditions: How Globalization affects Domestic Economies

Abstract

Abstract Based on empirical pieces of evidence, this study supports globalization. It concludes that the use of the Internet, the arrival and departure of tourists, and the quantum of external trade play significant and robust roles in the alleviation of poverty, improving decent employment, reducing income inequalities, and improving domestic businesses. The major contribution of foreign direct investment is derived through improvement in local businesses. More importantly, information technology plays a substantial role in the progress of the domestic economy. Growth in merchandising trade improves GDP growth and alleviates vulnerable employment. Trade in services improves GDP growth and labor participation rate, while it alleviates poverty, unemployment, and inflation. The effectiveness of monetary policies has also been confirmed in this analysis. The panel least square techniques have been applied to estimate the effects of explanatory variables. This research is based on 14 years data (from 2008 to 2021) from 187 countries. JEL Classification: E51, I32, J64, O21