Driving Forces of Globalization in Emerging Market Economies Developing Countries

The paper will deal mainly with the macroeconomics of globalization (trade andfinance), but before proceeding, a final distinction needs to be drawn betweenglobalization and liberalization. Developing countries themselves had to take someimportant steps before the full impact of globalization could be felt. Specifically, theyhad to open their own economies, to lower the barriers to trade and capital flows thathad been an important component of the import-substitution industrialization modelthat almost all followed for some period. Without these policy shifts, globalizationwould be much less relevant than it is today, especially in the developing world.Liberalization, then, is the other side of globalization.