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Globalisation, Economic Growth and COVID-19. Insights from International Finance

Author

Listed:
  • Monica RAILEANU SZELES

    (Transilvania University of Brasov, and Institute for Economic Forecasting, Romanian Academy.)

  • Corina SAMAN

    (Institute for Economic Forecasting and Institute of Agricultural Economics, Romanian Academy.)

Abstract

This paper examine whether the globalisation positive and negative side effects on economic growth significantly differ across the European Union’s Member States, by focusing on a set of indicators from the area of international finance. The empirical results derived from a set of Eurostat panel data guide us to formulate a set of policy recommendations intended to overcome and ease the adverse shocks that may prevail in the EU economies during and after global crises, such as the Covid-19 pandemic. The paper finds that the foreign controlled companies significantly influence the foreign direct investment inflows and economic growth, but their impact is different across the EU countries, with significant differences between the New and Old Member States. Although common EU initiatives and policies are needed to overcome the side effects of globalisation manifested through global crises, national reactions and measures are needed too, especially on short term.

Suggested Citation

  • Monica RAILEANU SZELES & Corina SAMAN, 2020. "Globalisation, Economic Growth and COVID-19. Insights from International Finance," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(3), pages 78-92, September.
    • Handle: RePEc:rjr:romjef:v::y:2020:i:3:p:78-92
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    2. Ömer YALÇINKAYA & Ali Kemal ÇELİK, 2021. "The Impact of Global Uncertainties on Economic Growth: Evidence from the US Economy (1996: Q1-2018: Q4)," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(2), pages 35-54, June.

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    More about this item

    Keywords

    : globalisation; Covid-19; economic growth;
    All these keywords.

    JEL classification:

    • F62 - International Economics - - Economic Impacts of Globalization - - - Macroeconomic Impacts
    • F65 - International Economics - - Economic Impacts of Globalization - - - Finance
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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