Globalized development : The effect of economic globalization on human development in developing countries

The main purpose of this paper is to examine the relationship between economic globalization and human development in low to medium developed countries and to see if different aspects of economic globalization have different effects on human development. The theoretical starting point of this study assumes that an increased level of economic globalization will lead to increased human development as governments will create new regimes aimed to maximize economic growth and to increase the welfare of the citizens. This study uses a quantitative method where statistical testing is preferred in order to be able to examine how economic globalization affects human development. The results of this study indicate that economic globalization has a positive effect on human development and that it is mainly trade globalization that makes up that effect, while financial globalization has no significant effect. It also suggests that the effects of economic globalization are weaker for the countries with the lowest levels of human development compared to countries with higher development.