ROLE OF GLOBALIZATION TOWARDS INFLATION AND HUMAN DEVELOPMENT INDEX (HDI) IN DEVELOPING COUNTRIES

Abstract

The research examines globalization's effect on inflation and HDI in developing countries. According to the endogenous growth theory and dependency theory, the data is collected from World Development Indicators, United Nations Development Program, KOF Swiss Economic Institute, and International Financial Statistics databases for the period from 1990 to 2023 and ARDL is used for data analysis. The result revealed that KOF has a positive and insignificant effect on inflation. GDP has a negative and insignificant effect on inflation. ER also has a positive and insignificant effect on inflation. The study also showed that KOF, GDP, and ER positively and significantly affect HDI. Also, this study is helpful for policymakers as it demonstrates that while globalization has a very positive impact on raising HDI, its impact on inflation is almost insignificant and, therefore, offers information on how the impact of globalization can be harnessed for better human development outcomes.