A Panel Data Analysis of Globalization, Peace and Stability: Implications for Governance and the Global Knowledge Economy

Keywords: globalization, peace and stability, governance, global knowledge economy


This study attempts to explore the relationship between globalization and the knowledge economy via governance. It intends to explain the channel of their relationship through peace and stability. Knowledge economy pillars (Education and Information and communication technology) are used as the dependent variable and globalization is used as an independent variable. To obtain the objectives of the study, the panel data set of 198 countries is used for the period of 1996-2016. The study has employed econometric techniques of panel data set such as the Fixed Effect Model (FEM), Random Effect Model (REM), and Hausman test. The results reveal that globalization has a significant and positive impact on the knowledge economy. Hence the study recommends that the country should execute such reforms that help enhance the globalization and increase the development of the knowledge economy.

JEL Classification Codes: F60


Download data is not yet available.


Alesina, A., Özler, S., Roubini, N., & Swagel, P. (1996). Political instability and economic growth. Journal of Economic Growth, 1(2), 189-211.

Amavilah, V. H. (2009). Knowledge of African countries: Production and value of doctoral dissertations. Applied Economics, 41(8), 977-989. https://doi.org/10.1080/00036840601019117.

Amavilah, V. H., Asongu, S. A., & Andrrs, A. R. (2014). Globalization, Peace & Stability, Governance, and Knowledge Economy. )Retrieved from https://econpapers.repec.org/RePEc:aay:wpaper:14_024

Andrés, A. R., Asongu, S. A., & Amavilah, V. (2015). The impact of formal institutions on the knowledge economy. Journal of the Knowledge Economy, 6(4), 1034-1062.

Anyanwu, J. C. (2012). Developing knowledge for the economic advancement of Africa. International Journal of Academic Research in Economics and Management Sciences, 1(2), 73-111.

Asongu, S. (2014). Globalization (fighting), corruption and development: How are these phenomena linearly and nonlinearly related to wealth effects?. Journal of Economic Studies, 41(3), 346-369. https://doi.org/10.1108/JES-04-2012-0048.

Asongu, S. A., Efobi, U., & Tchamyou, V. S. (2018). Globalization and governance in Africa: a critical contribution to the empirics. International Journal of Development Issues, 17(1), 2-27. https://doi.org/10.1108/IJDI-04-2017-0038.

Asongu, S., Efobi, U., & Beecroft, I. (2015). Inclusive Human Development in Pre‐crisis Times of Globalization‐driven Debts. African Development Review, 27(4), 428-442. https://doi.org/10.1111/1467-8268.12158.

Asongu, S. A., & Le Roux, S. (2017). Enhancing ICT for inclusive human development in Sub-Saharan Africa. Technological Forecasting and Social Change, (118), 44-54. https://doi.org/10.1016/j.techfore.2017.01.026.

Asongu, S. A., Nwachukwu, J. C., & Tchamyou, V. S. (2016). Information asymmetry and financial development dynamics in Africa. Review of Development Finance, 6(2), 126-138. https://doi.org/10.1016/j.rdf.2016.09.001.

Bonaglia, F., Braga de Macedo, J., & Bussolo, M. (2001). How Globalization Improves Governance (CEPR Discussion Paper No. 2992). Retrieved from https://papers.ssrn.com/Sol3/papers.cfm?abstract_id=288354.

Choong, C. K. (2012). Does domestic financial development enhance the linkages between foreign direct investment and economic growth?. Empirical Economics, 42(3), 819-834.

De Gregorio, J. (1992). Economic growth in Latin America. Journal of Development Economics, 39(1), 59-84. https://doi.org/10.1016/0304-3878(92)90057-G

Dreher, A. (2006). Does globalization affect growth? Evidence from a new index of globalization. Applied Economics, 38(10), 1091-1110. https://doi.org/10.1080/00036840500392078.

Ford, D. M. (2007). Technologizing Africa: On the bumpy information highway. Computers and Composition, 24(3), 302-316. https://doi.org/10.1016/j.compcom.2007.05.005.

Freeman, J. (1997). Collaborative governance in the administrative state. Retrieved from https://heinonline.org/HOL/LandingPage?handle=hein.journals/uclalr45&div=10&id=&page=

Goldin, I & Reinert, K, (2006). Globalization for development: trade, finance, aid, migration, and policy. Washington: Palgrave Macmillan

Hibbs, D. A. (1973). Mass political violence: A cross-national causal analysis (Vol. 253). New York: Wiley.

Jolliffe, I. T. (2002). Principal Component Analysis, New York: Springer. https://doi.org/10.1007/0-387-22440-8_5.

Jordana, J., & Levi-Faur, D. (Eds.). (2004). The politics of regulation: Institutions and regulatory reforms for the age of governance. Cheltenham, United Kingdom: Edward Elgar Publishing

Kaiser, H. F. (1974). An index of factorial simplicity. Psychometrika, 39(1), 31-36. https://doi.org/10.1007/BF02291575.

Kremer, M. (2006, January). Globalization of labor markets and inequality. In Brookings Trade Forum (pp. 211-228). Washington, D.C., United States: Brookings Institution Press.

Lee, D. J., & Sirgy, M. J. (2004). Quality-of-life (QOL) marketing: Proposed antecedents and consequences. Journal of Macromarketing, 24(1), 44-58. https://doi.org/10.1177/0276146704263922.

Majeed, M. T. (2014). Corruption and Trade. Journal of Economic Integration, 29(4), 759-782.

Olson, M. (2008). Collective action (nd Ed.). In Durlauf, S.N. & Blume L. E. The New Palgrave Dictionary of Economics, London: Palgrave.

Oxley, L., & McAleer, M. (1993). Econometric issues in macroeconomic models with generated regressors. Journal of Economic Surveys, 7(1), 1-40. https://doi.org/10.1111/j.1467-6419.1993.tb00158.x.

Pesaran, M. H. (2006). Estimation and inference in large heterogeneous panels with a multifactor error structure. Econometrica, 74(4), 967-1012. https://doi.org/10.1111/j.1468-0262.2006.00692.x.

Quibria, M. G. (2006). Does governance matter? Yes, no or maybe: Some evidence from developing Asia. Kyklos, 59(1), 99-114. https://doi.org/10.1111/j.1467-6435.2006.00322.x.

Rodrik, D. (1998). Globalization, social conflict and economic growth. World Economy, 21(2), 143-158.

Rooney, D. (2005). Knowledge, economy, technology and society: The politics of discourse. Telematics and Informatics, 22(4), 405-422. https://doi.org/10.1016/j.tele.2004.11.007.

Saxegaard, M. (2006). Excess liquidity and effectiveness of monetary policy: Evidence from Sub-Saharan Africa (IMF Working Paper 06/115). Washington, DC: International Monetary Fund.

Scholte, J. A. (2000). What is' global'about Globalization? (pp. 41-62). London: Macmillan.

Waltz, K. N. (1999). Globalization and governance. PS: Political Science & Politics, 32(4), 693-700.

Wantchekon, L., Klašnja, M., & Novta, N. (2014). Education and human capital externalities: Evidence from colonial Benin. The Quarterly Journal of Economics, 130(2), 703-757. https://doi.org/10.1093/qje/qjv004.

How to Cite
Zafar, A., & Majeed, M. (2020). A Panel Data Analysis of Globalization, Peace and Stability: Implications for Governance and the Global Knowledge Economy. Journal of Quantitative Methods, 4(2), 25-53. https://doi.org/10.29145/2020/jqm/040202