Globalization and economic growth: Evidence from two decades of transition in CEE

This paper examines the role of various aspects of globalization for economic growth in ten CEE economies. In contrary to previous papers, we restrict our analysis solely to the first two decades of transition. Using the globalization indexes published by the Swiss Economic Institute, we found strong and robust evidence of growth-stimulating effect of globalization processes, especially in social and economic dimensions. On the other hand, the role of political dimension of globalization was not found to be statistically significant in any research variant. The result, which seems to be particularly interesting, is that the development of the internet, television and trade in newspapers (the social dimension of globalization) had at least as strong positive impact on economic development in CEE economies in the first two decades of transition as the rise in international trade, growth of foreign investment, reduction of import barriers and development of a tax policy (the economic dimension). (C) 2013 Elsevier B.V. All rights reserved.