Document Type : Research Paper

Authors

• Saman Ghaderi ¹
• Aniseh Amini ²

¹ Department of Economics, University of Kurdistan, Sanandaj, Iran

² Bachelor's degree M.Sc. Student in Economics, Department of Economics, Faculty of Humanities and Social Sciences, University of Kurdistan, Iran.

Abstract

In this research, first, human well-being is carefully examined using a composite index. Then, the impact of economic globalization on human well-being in developed and developing countries in the period from 2000 to 2020 is evaluated using the panel smooth transition regression (PSTR) method. Considering the economic globalization as a transition variable, the characteristics of Mana and non-linearity of the variables are also investigated. The results show the existence of a non-linear relationship between the research variables. Also, for developed countries, the existence of two transfer functions and two threshold limits, which represent a three-regime model, and for developing countries, one transfer function and two threshold limits, which represent a two-regime model, were selected as optimal models. For developed countries, the adjustment speeds are 275.60 and 806.26, respectively. That is, the transition from the linear regime to the intermediate regime takes place at a much higher speed than the transition from the intermediate regime to the third limit regime. Also, the estimation of the model for developed countries shows a non-linear relationship in two threshold points, which is equal to 73.80 for the transition from the first limit regime to the second limit regime and 87.56 for the transition from the second to the third limit regime. The speed of adjustment for developing countries is equal to 77.63. It means that regime transfer is done at a slower speed than in developing countries. Also, the estimation of the model for developing countries shows a non-linear relationship in two threshold points, which is equal to 41.62 for the transition from the first limit regime to the second limit regime. If the economic globalization in developed countries exceeds 87.56 in the first limit regime, the behavior of the variables will be according to the second regime, and if it exceeds 73.80, the behavior of the variables will be according to the third regime. And if it is less than the above threshold, they will be placed in the first regime. Also, for developing countries, if the economic globalization exceeds 41.62, the behavior of the variables will be according to the second limit regime. Also, if it is less than the above threshold, it will be placed in the first regime.

Keywords

• Human well-being
• economic globalization
• panel smooth transition regression (PSTR)

Main Subjects

• Development economics and planning