Evolution of the World Economy's Globalization: Contemporary Trends

657
DOI: 10.20542/0131-2227-2019-63-2-5-12

D. Smyslov (dmitrysmyslov@mail.ru),
Primakov National Research Institute of World Economy and International Relations, Russian Academy of Sciences, 23, Profsoyuznaya Str., Moscow, 117997, Russian Federation



Abstract

Globalization of the world economy became the most apparent since the second part of the XX century. The article explores the present peculiarities of this process and the subsequent macroeconomic transformations, as well as various political perturbations in the today’s world. The author makes an attempt to investigate in details the influence of the above mentioned factors on the traditional aspects of globalization. They are international trade, transborder financial flows (bank loans and deposits, international debt securities, foreign equity issues), foreign direct investments defining the volume and the structure of global international production. The author makes emphasis on the two most evident changes in the dynamics of globalization conditioned by the world macroeconomic developments, namely, the sharp reduction of transnational bank lending and the relative stability of the world foreign direct investments flows. The conclusions are based on the use of a large volume of the corresponding statistical information. Since the beginning of our century, a rapidly growing role in the world economy is played by the so called digital economy. It constitutes one more channel of globalization, known as digital globalization. According to majority of the economists’ views, nowadays this technology makes a heavier contribution to the support of the world growth rather than trade in goods. At the same time, the author shares the opinion that digital international financial instruments play conflicting roles, encouraging globalization process and, correspondingly, economic growth, on the one part, and creating new potential risks, on the other part. The fact that globalization involves contradictionary consequences entails the use of political and legal instruments for defending the interests of consumers, facilitating innovations and raising effectiveness of the economy. The author supports the view according to which the key to settlement of the above described contradiction lies not in fighting against globalization, but in elaborating smart political measures in order to maximize the advantages of new technologies and at the same time to minimize inevitable short-term distortions. The analysis of statistical data, the study of the corresponding scientific literature and also taking into account the influence of the rapid development of the digital economy bring the author to the conclusion that globalization is not coming to an end or even permanently moving backwards. At the same time, there’s no ground to believe that it would have evenly progressive character. Taking into account impetuous diffusion of various technological innovations, one can expect further transformation of structure and mechanisms of the world economy’s globalization.


Keywords

globalization, world economy, international trade, transborder financial flows, foreign direct investments, international production, digital globalization, international management


 REFERENCES

1. World Bank Policy and Research Bulletin. Washington, World Bank, vol. 7, № 2, April-June 1996. Available at: http://documents.worldbank.org/curated/en/357461468137379235/The-World-Bank-annual-report-1996 (accessed 05.09.2017).

2. World Economic Outlook Database, April 2007: Spillovers and Cycles in the Global Economy. Available at: https://www.imf.org/en/Publications/WEO/Issues/2016/12/31/Spillovers-and-Cycles-in-the-Global-Economy (accessed 15.05.2018).

3. World Economic Outlook Database, October 2013: Traditions and Tensions. Available at: https://www.imf.org/en/Publications/WEO/Issues/2016/12/31/Transitions-Tensions (accessed 15.05.2018).

4. World Economic Outlook Database, April 2017: Gaining Momentum. Available at: https://www.imf.org/en/Publications/WEO/Issues/2017/04/04/world-economic-outlook-april-2017 (accessed 15.05.2018).

5. Mallaby S. Globalization Resets. The Finance and Development Magazine, Washington, IMF, December 2016. Available at: www.imf.org/external/pubs/ft/fandd/2016/12 (accessed 02.05.2018).

6. BIS Quarterly Review. International Banking and Financial Market Developments. Statistical Annex. Basle, Bank for International Settlements, за соответствующие годы.

7. World Investment Report 2017. Investments and the Digital Economy. New York, Geneva, UNCTAD, 2017. P. 238.

8. World Investment Report 2017. Investments and the Digital Economy. Key Messages and Overview. Available at: https://unctad.org/en/PublicationsLibrary/wir2018_overview_en.pdf (accessed 08.10.2017).

9. Muhleisen M. The Long and the Short of the Digital Revolution. The Finance and Development Magazine. Washington, IMF, June 2018. Available at: https://www.imf.org/external/pubs/ft/fandd/2018/06/impact-of-digital-technology-on-economic-growth/muhleisen.htm (accessed 12.06.2018).

10. Obstfeld M. Get on Track with Trade. The Finance and Development Magazine. Washington, IMF, December 2016. Available at: https://www.imf.org/external/pubs/ft/fandd/2016/12/obstfeld.htm (ассеssed 03.05.2017).

11. Lipton D. Two-Way Street. The Finance and Development Magazine. Washington, IMF, December 2016. Available at: https://www.imf.org/external/pubs/ft/fandd/2016/12/straight.htm (accessed 05.15.2018).

 


Registered in system SCIENCE INDEX

For citation:
Smyslov D. Evolution of the World Economy's Globalization: Contemporary Trends. Mirovaya ekonomika i mezhdunarodnye otnosheniya, 2019, vol. 63, No 2, pp. 5-12. https://doi.org/10.20542/0131-2227-2019-63-2-5-12



Comments (0)

No comments

Add comment







Indexed
 
Current Issue
2021, vol. 65, No. 4

Topical Themes of the Issue:

  •  Coronacrisis in the EU: a Knock-Down or a Jump-Off for Integration? 
  •  Latin America in the South-South Cooperation Against the Background of Globalization Controversies 
  •  Reforming the Saudi Economy: Results and Perspectives 
  •  Non-Western Theories of Development in the Global Capitalism Era
  •  About an Attempt to Create a Theory of International Relations in IMEMO in the 1970s
View This Issue (2021, vol. 65, No. 4)
Submit an Article
Announcement

Dear readers!
Please note that free access to full-text issues of the Journal is being opened at our WEB-site after 6 months of the date of publications.The work on deepening the open archive of full-text issues will be continued.


Dear colleagues, authors and readers!
We kindly request you to turn to editor-in-chief and executive secretary directly concerning reviewing scientific publications in our journal. Only editor-in-chief takes decision on order and publication the reviews!

Dear readers!
This is to inform the researchers of the Institute of World Economy and International Relations that electronic versions of the IV issue of 2020 and I issue of 2021 of French magazine Politique étrangère are now available. Those who are interested, please personally address to the editorial staff of MEMO Journal (room 18-17) with an electronic media.
NEW SECTION

In response to the challenges of our time the Editorial board continues to open new thematic rubrics:

“World Energy Sector after Pandemic”. We plan to publish articles presenting in-depth analysis of influence of Pandemic on the global energy sector and forecasts of further developments in its various branches.

“Civilization processes of modern development” is a new rubric opened by MEMO Journal in 2020. It will be devoted to the analysis of the influence of civilizational factors and inter-civilizational interactions on the political and socio-economic development of the world at whole, regions and countries.

“Africa today and tomorrow”The rubric devoted to contemporary issues of Africa which is attracting growing interest of the world's leading actors. We plan to publish the articles analyzing the status of statehood, socio-economic and political development of the countries of Black continent, as well as the integration processes between them.

CONTEST!

"World Eсonomy and International Relations" announces a contest for the best joint academic publications of domestic and foreign researchers and experts in topical issues of the world economy and international relations. The winners will be selected according to the results of peer reviewing and discussion at the Editorial Board. The articles will be published in priority order.

SUBSCRIBE TO THE JOURNAL

The print version of “World Economy and International Relations” journal is distributed by advance subscription only, and is not offered for retail sale. To subscribe please address to any post office in Russia by referring to the Federal Postal Service Union Catalogue, section “ARSMI”, the journal index is 70542. The subscription may be made for the whole subscription period or starting from any nearest available month for desired number of issues.

To purchase the full-text electronic version of the journal’s issue/article please address to the WEB portal of Scientific electronic library eLIBRARY.ru or URL: https://press.gaugn.ru/.

In journal
Years
2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 | 2010 | 2009 | 2008 | 2007 | 2006 | 2005 | 2004 | 2003 | 2002 | 2001 | 2000 | 1999 | 1998 | 1997 |

The author’s opinions may not coincide with the position of editorial