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Abstract

This article observed the impact of globalization on economic growth of 27 developing countries from the year 2009 until 2018. Gross Domestic Product (GDP) per capita is used as dependent variable to measure economic growth. This paper employed static panel data to analyse the impact of population growth, human capital, financial development, foreign direct investment and globalization on economic growth. The results reveal globalization has a significant impact on economic growth. Interaction term were used to measure the effectiveness of globalization in influencing foreign direct investment and its impact on economic growth. Magnificently, this interaction term provides a positive significant impact on economic growth. This means that more economic incorporation through globalization will encourage foreign direct investment and eventually accelerate economic growth. All independent variables used suggest significant impact on economic growth. This study will enhance literature on factor s influence economic growth and provide an overview of indicators to stimulate economic growth.