Next Article in Journal
Assessment of Economic Security of Households Based on a Scenario Analysis
Next Article in Special Issue
An Analysis of the Determinants of Household Consumption Expenditure and Poverty in India
Previous Article in Journal
Unemployment and Growth in the Tourism Sector in Mexico: Revisiting the Growth-Rate Version of Okun’s Law
Previous Article in Special Issue
A Survey of Inclusive Growth Policy
Open AccessArticle

Welfare Impact of Globalization in Developing Countries: Examining the Mediating Role of Human Capital

Agricultural and Food Economics Branch, Agri-food and Biosciences Institute, 18a Newforge Lane, Belfast BT9 5PX, UK
International Food Policy Research Institute (IFPRI), Off Oro-Ago Crescent Garki II, Abuja 901101, Nigeria
Department of Economics, Management, Institutions, University of Naples “Federico II”, Monte Sant’Angelo, 80126 Napoli, Italy
School of Industrial Engineering, Università Carlo Cattaneo-LIUC, Corso G. Matteotti 22, 21053 Castellanza, Italy
Institute for Justice Research and Development, Florida State University, Tallahassee, FL 32306, USA
Author to whom correspondence should be addressed.
Economies 2019, 7(3), 84;
Received: 10 June 2019 / Revised: 1 August 2019 / Accepted: 16 August 2019 / Published: 21 August 2019
(This article belongs to the Special Issue Growth, Global Poverty Reduction and Income Distribution)
Despite remarkable progress in the fight against poverty during the past few decades, the proportion of the poor living in developing countries is still on the high side. Many countries have promoted integration as an important development strategy; however, its impact on welfare of the poor is still unclear. In this study, we examine the roles of education and health dimensions of human capital in globalization and its impact on the poverty gap and the child mortality rate using cross-country panel data covering 110 developing countries between 1970 and 2015. We use a model based on system generalized method of moments (SGMM) to control for unobserved heterogeneity and potential endogeneity of the explanatory variables. The empirical results reveal that globalization reduces poverty gap and child mortality rate, and that an increase in the stock of human capital in developing economies improves welfare outcomes. The study also finds that human capital strengthens the negative impact of globalization on poverty gap and child mortality rate. For example, should enrollment in secondary school in Nigeria (in 2013) be increased from 39.2% to 61.6%, on average, it could translate into 2508 fewer under-five child deaths. We recommend that interconnectedness and promotion of human capital development should constitute a fundamental component of policy mix targeted at enhancing reduction of poverty and child mortality rate in developing countries. View Full-Text
Keywords: developing countries; globalization; human capital; wellbeing developing countries; globalization; human capital; wellbeing
Show Figures

Figure 1

MDPI and ACS Style

Olagunju, K.O.; Ogunniyi, A.I.; Oguntegbe, K.F.; Raji, I.O.; Ogundari, K. Welfare Impact of Globalization in Developing Countries: Examining the Mediating Role of Human Capital. Economies 2019, 7, 84.

Show more citation formats Show less citations formats
Note that from the first issue of 2016, MDPI journals use article numbers instead of page numbers. See further details here.

Article Access Map by Country/Region

Back to TopTop