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This article examines the concepts of “deglobalization” and “decoupling” from the perspectives of developing and developed nations. It also assesses the short-term impacts of globalization, particularly in the context of the COVID-19 pandemic and predicts the long-term effects on global trade and cooperation between nations.

Panel data from 85 countries (2000–2022) were utilized. Poisson Pseudo-Maximum Likelihood (PPML) regression analysis was conducted to analyze pre- and post-COVID-19 globalization levels. The analysis focuses on trade patterns and trends, specifically comparing the effects on developing and developed nations.

First, there was a slight decline in global trade in 2020 due to COVID-19, followed by recovery in 2021–2022. Second, developing nations experienced more significant trade declines than did developed nations. Third, while US? China trade decreased slightly, China-India and US-India trade increased during the pandemic. These findings suggest that while there may be short-term disruptions, long-term trends indicate resilience in global trade patterns, with shifts in output and new partnerships emerging.

This study contributes to the understanding of deglobalization and decoupling by providing empirical evidence on pre- and post-COVID-19 trade patterns. The findings suggest that while globalization may have short-term effects, it is likely to lead to post-pandemic recovery and strengthened cooperation between developing and developed nations. This research also highlights the importance of developing strategies to manage uncertainty and external shocks in global trade, emphasizing the role of lockdown measures, national security considerations, and trade policies in shaping the future of globalization and decoupling.

The study examined the effect of fiscal policy on poverty in sub-Saharan Africa (SSA) while accounting asymmetric (captured by economic downturns) and spillover effects.

The study used a fixed effect (within regression) IV model to account for country-specific characteristics. The study also adopts a cross-sectional and spatial dependence-consistent model to account for the potential cross-sectional and temporal dependence in panel data modeling.

The study discovered that the effect of fiscal policy on poverty is dependent on the state of the economy. Specifically, we find that fiscal policy helps to reduce the level of poverty during an economic downturn, more than at any other time. More specifically, the findings indicate that the fiscal policy lowers the rate of poverty in SSA, following macroeconomic shocks (captured by the COVID-19 epidemic, the Global Financial Crisis, and the commodity terms of trade shocks). Our findings suggest that fiscal policy is an important policy tool to mitigate the effects of macroeconomic shocks in SSA. Further, the findings also demonstrate that there is a spillover effect of poverty in the region. This implies coordinated, constructive actions by the regional governments can help to lessen the detrimental effects of extreme poverty.

The study examined the effectiveness of fiscal policy to reduce poverty in the event of an economic downturn.

This paper aims to assess the short- and long-run effects of the interaction between institutional quality and financial development (FD) on the competitiveness of the WAEMU economy over the period 2007–2018.

The methodology consisted of cross-referencing a synthetic indicator of FD with indicators of institutional quality and then estimating an auto regressive distributed lag model.

The results of the pooled mean group and dynamic fixed effect estimation show a positive and significant impact of this interaction on the competitiveness of the economy in the long run. In the short run, the results are quite similar to those in the long run for the direct effects but different for the crosses. Also, the analysis of country specificity shows that the results are similar to those in the short run since the interaction between FD and institutional quality (political stability and government effectiveness) negatively affects the competitiveness of Burkina Faso, Ivory Coast and Mali, and positively affects the competitiveness of Benin and Senegal.

These results suggest the need for effective policies to improve the quality of institutions to enhance the mobilization of financial resources through FD to ensure the competitiveness of economies. Improving the quality of the political and institutional environment is a prerequisite for economic competitiveness.

The paper is in line with the New Institutional Economics that developed in the 1970s. This referential framework is a heterogeneous body of work that encompasses works whose common point is the determination of the role of institutions in economic coordination. Unlike previous studies, which have focused on the contribution of the interaction between institutional quality variables and FD on economic growth, this paper analyzes the effects of this interaction on economic competitiveness. It, therefore, constitutes a contribution to this literature and aims primarily to fill this gap.