In the article Globalization and Economic Growth: Empirical Evidence on the Role of Complementarities we read about the effect of economic globalization on economic growth in OIC countries. OIC stands for The Organization of Islamic Cooperation. As we read further into the article, we also learn about the effect of complementary policies on the growth effect of globalization. This article also investigates whether the growth effect of globalization depends on the income level of countries. The relationship between globalization and growth is a very debatable topic. The issue is far from being resolved. Some studies have found positive effect on globalization and growth and some have found that globalization has a harmful effect on growth. All in all, the research question is asking how economic globalization effects economic growth. According to this article there are three schools of thought that informed the research in the article. The first school of thought is that globalization has a positive effect on economic growth. The second school of thought is basically the opposite – that globalization has a negative effect on economic growth. The third school of thought covers the studies that found nonlinear relationships between globalization and …show more content…
The first chart shows that economic globalization has positive impact on growth and the coefficient is significant at 1%. The second chart shows that economic growth not only directly promotes growth but also indirectly does via complementary reforms. The third chart shows that the economic globalization in high and middle-income countries boost economic growth, but this effect is diverse for low-income countries. These charts are basically the visualization of the three schools of thought mentioned in the paragraph above. In this way the article helps us visualize these theories and makes it easier for us to understand