Evolution of the World Economy's Globalization: Contemporary Trends

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


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For citation:
Smyslov D. Evolution of the World Economy's Globalization: Contemporary Trends. World Eonomy and International Relations, 2019, vol. 63, no. 2, pp. 5-12. https://doi.org/10.20542/0131-2227-2019-63-2-5-12

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