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Aim of the present monograph is the economic analysis of the role of MNEs regarding globalisation and digital economy and in parallel there is a reference and examination of some legal aspects concerning MNEs, cyberspace and e‐commerce as the means of expression of the digital economy. The whole effort of the author is focused on the examination of various aspects of MNEs and their impact upon globalisation and vice versa and how and if we are moving towards a global digital economy.

The global slack hypothesis is central to the discussion of the trade-offs that monetary policy faces in an increasingly more integrated world. The workhorse New Open Economy Macro (NOEM) model of Martínez-García and Wynne (2010), which fleshes out this hypothesis, shows how expected future local inflation and global slack affect current local inflation. In this chapter, I propose the use of the orthogonalization method of Aoki (1981) and Fukuda (1993) on the workhorse NOEM model to further decompose local inflation into a global component and an inflation differential component. I find that the log-linearized rational expectations model of Martínez-García and Wynne (2010) can be solved with two separate subsystems to describe each of these two components of inflation.

I estimate the full NOEM model with Bayesian techniques using data for the United States and an aggregate of its 38 largest trading partners from 1980Q1 until 2011Q4. The Bayesian estimation recognizes the parameter uncertainty surrounding the model and calls on the data (inflation and output) to discipline the parameterization. My findings show that the strength of the international spillovers through trade – even in the absence of common shocks – is reflected in the response of global inflation and is incorporated into local inflation dynamics. Furthermore, I find that key features of the economy can have different impacts on global and local inflation – in particular, I show that the parameters that determine the import share and the price-elasticity of trade matter in explaining the inflation differential component but not the global component of inflation.

The purpose of the article is to analyze the contradictory trends in the development of the modern world economic system. The relevance of the topic is due to the multifaceted and ambiguous nature of regionalization, glocalization and fragmentation tendencies formed as the most important trends in the crisis of globalism.

Based on the classical methods of historical and functional analysis, system approach and comparative studies, the authors realized the research potential of modern methodological tools, alternative forecasting methods and comparative modeling, as well as special methods of economic globalistics and global political economy. Heuristic possibilities of the methodological–theoretical concept of glocalization of international economic relations are used.

New directions and opportunities for attaining regional and global geo-economic leadership are revealed and demonstrated. It is justified that glocalization does not lead to economic isolation in previously known historical forms but to priority realization of the interests of local economic entities included in the processes of globalization and subordinated to its patterns. Glocalization causes an increase in the role of local factors in the global development of the society, in particular of the global economy.

It is established that the so-called equilibrium zones (enjoying the advantages of an intermediary role in the interrelationships of large areas of the world economy, which are headed by geo-economic leaders) possess the potential for novelty in the dynamics of a globalizing economy. The article predicts the formation of a multidimensional and multilevel geo-economic multipolarity due to the reshaping of the global system of leadership in the world economy and due to the contradictory competitive relationships of its main centers.

In the background of the global economic and financial crisis, one hears and reads nothing but excoriation and denunciation of globalization. The purpose of this paper is to provide an honest and objective analysis of the contemporary global economic scenario, which reveals numerous challenges that globalization engendered in different countries, country groups as well as in the global economy. This paper asserts that globalization has a positive side as well. The trauma of the continuing crisis is vitiating the enormous constructive contribution made by economic and financial globalization in the contemporary period.

The paper looks at: globalization as a welfare‐enhancing force; some front runners of globalization and particularly the ascent and economic integration of East Asia, China, India, the BRICS, etc. and latecomers to globalization.

The essential findings of this paper are that country groups like East Asia in the past and China and India at present have benefited immensely from economic and financial globalization. Rapid group in the sub‐group of economies referred to as the emerging‐market economies is made possible by economic and financial globalization. The ascent of these economic groups is changing the contours of the global economy. The newest achievement of economic and financial globalization is a favorable impact over the former non‐market economies and Africa. Both of these are regarded as challenging cases in the past.

Economic and financial globalization has remained a controversial issue. This paper takes a bold and original perspective in focusing on its favorable contributions at a time point when it is being deprecated for causing a great deal of upheaval in the global economy.

This study aims to empirically examine how economic policy uncertainty emanating from three major global economic blocks (the US, the Chinese and the European Union) and volatility in global oil prices influence international trade.

The study uses quarterly data spanning the period between 1995 and 2014 in an autoregressive distributed lag framework.

This study finds that economic policy uncertainty conditions associated with the US and the Chinese economies tend to have significant negative or constraining impact on key components of international trade. Further analysis suggests that between the two leading economies (the US and the Chinese economies), economic policy uncertainty emanating from the US economy tend to have much more constraining impact on dynamics of international trade than the Chinese economy all things being equal.

This study’s findings carry significant strategic planning and policy implications for international trade dependent firms or corporations and economies. For instance, for multi-national corporations or firms whose products and services depend heavily on cross-border trade, understanding and taking into consideration prevailing economic policy dynamics emanating from the US and the Chinese economies in product and services demand forecast, and other strategic moves could be critical in minimizing potential adverse effects on projected performance or growth targets.

The uniqueness of this study’s approach stems from its assessment of how perception of uncertainty among economic agents about economic policies originating from three noted global economic blocks impacts international trade. In other words, instead of traditional factors or conditions surmised to influence variability in trend associated with international trade found in related studies, this study rather examines how perceptions of uncertainty about prevailing or yet to be enacted economic policy within specific global economic block impacts international trade.

This chapter aims to discuss the challenges facing these countries building productive capacity for development. This chapter makes use of data published by international organizations as indicators for measuring the state of development in the Arab region. Several indicators are presented to compare Arab countries with other world regions. The use of data identifies some of the gaps that countries in the Arab region need to close to strengthen capacity building for development and fostering economic growth. The findings from the data presented reveal that the productive structure in most Arab countries remains weak to generate production linkages and provide incentives for investment in nonenergy sectors. The failure of the export-led growth model to diversify output and promote development in energy producing countries has increased the dependence of these countries on global trade. Fluctuations in commodity prices and uncertainty about global demand for energy have influenced the ability of the state to construct strategies for rapid transformation. Except for the energy sector, the productivity of nonoil sectors remains low reflecting inadequate incentives and ineffective entrepreneurial capabilities. The study examines the challenges for building productive capacity in the Arab world. It illustrates the failure of the led-export model and its inability to prompted economic diversification, especially in the Gulf countries. The study contributes to the literature on capacity building in the Arab world so that to encourage researchers and students of development conducting studies concerning the main development challenges facing these countries.

The aim of this paper is to bring into question the idea of the global knowledge economy.

The paper explores the characteristics of the knowledge economy, as elaborated by academics and policy makers concerned with knowledge in the contemporary global business environment. A range of available data is reviewed concerning the global distribution of investments in knowledge, information and communications technologies (ICTs), international transactions in knowledge‐intensive services and royalty and licensing fees, employment by sector and literacy rates. Such data provide a basis for an initial critical evaluation of the notion of the global knowledge economy.

The use of the term “global knowledge economy” fails to acknowledge the uneven distribution of knowledge‐based economic activity. Moreover, as currently constituted, the idea of a global knowledge economy, which focuses on knowledge as conceptualised in the commercial activities of advanced countries, overlooks the diversity of knowledges present in the world today.

This paper provides the first attempt to question and critically explore the global knowledge economy.

The purpose of this paper is to examine how global liquidity affects international housing prices. The data sample covers 35 economies from 2000Q1 to 2017Q4.

The existing papers seldom investigated whether the impacts of global liquidity on housing prices display differences between advanced and developing economies. Cesa-Bianchi et al. (2015) is an exceptional study in that they focused on the impulse response of house price volatility to global liquidity shocks but did not examine the long-run equilibrium relationship. To fill the gap in the existing research, this paper used panel cointegration of Pedroni (2000, 2004) to estimate the long-run linkage between global liquidity and housing prices in both advanced and developing economies, and generalized impulse response function (GIRF) and generalized variance decomposition (GVDC) were also applied to capture the relative strengths and contribution of global liquidity shock on house price volatility.

First, the global liquidity elasticity of housing prices is 0.0679 in developing economies, and 0.0454 in advanced economies, implying that the positive effect of global liquidity on housing prices is higher in developing economies. Next, the results of generalized impulse response indicate that the innovation of global liquidity can significantly and positively impact housing prices only in developing economies and the duration is two quarters. Third, in light of the long-run portions of the global liquidity shock on house price volatility in individual economies, the two highest portions are 28.51% in the USA and 20.04% in the UK, while there are low portions, less than 10%, in most of the European economies. Moreover, comparing the long-run contributions of global liquidity and other variables shock on house price volatility, the contribution of the global liquidity shock ranks the highest or second highest in 21 out of 35 economies, confirming that it played a more important role than other economic variables in explaining house price volatility for most economies.

Compared with the related literature, the contributions of this paper are as follows. First, except for Cesa-Bianchi et al. (2015), the existing papers seldom investigated whether the impacts of global liquidity on housing prices display differences between advanced and developing economies. Hence, the study adopted a wider data sample, including 7 developing economies and 28 advanced economies, to examine the differences in the impact of global liquidity on housing prices between advanced and developing economies. Second, most of the relative literature calculated global liquidity by applying a monetary aggregate, such as M2 or M3, while Cesa-Bianchi et al. (2015) argued that global liquidity being measured by the international supply of credit is intuitively connected to housing prices. This paper follows the argument of Cesa-Bianchi et al. (2015) to use the international supply of credit as the measure of global liquidity, and both the long-run effects and the short-run relative strengths of global liquidity on housing prices are analyzed. Hence, this paper uses not only the GIRF to discuss the short-run relative strengths, as with Cesa-Bianchi et al. (2015) but also the panel cointegration of Pedroni (2000, 2004) to identify the long-run linkage between global liquidity and housing prices. Moreover, GVDC was used to estimate the contribution of a global liquidity shock on house price volatility in individual economies, which can confirm that global liquidity innovations are a very important factor in explaining house price volatility in most countries.