The Impact of Economic Globalization on the Import Dependence and Product Innovativeness of Manufacturing Industry: a case study of France, Germany, Italy and Poland
DOI:
https://doi.org/10.24917/20801653.394.1Keywords:
economic globalization, import dependence, product innovation, processing industry, production.Abstract
This study theoretically and analytically substantiates the authors’ hypotheses regarding the im-pact of economic globalization on import dependence (the share of imports in production costs) and product innovativeness (the share of innovative products in the volume of realized industrial production) within the manufacturing industries of France, Germany, Italy and Poland. It is empirically proven that increased economic globalization leads to a rise in import dependence but a decline in product innovativeness in the manufacturing industries of the countries studied. Specifically, the analysis reveals a high direct correlation between the de facto economic globalization index and the share of imports in the intermediate consumption of most manu-facturing divisions in the countries examined. Conversely, it is shown that a high inverse correlation exists between the de facto economic globalization index and the share of innovative products in the total realized industrial output of these countries’ manufacturing industries. The study models changes in import dependence and product innovativeness when the economic globalization index increases by five points. The research is based on data for the manufacturing industries of Poland, Italy, France and Germany from 2000 to 2019.
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