DOI: https://doi.org/10.36719/2789-6919/57/87-92
Nigar Sabzaliyeva
ADA University
Mаstеr’s studеnt
https://orcid.org/0009-0005-5213-6107
nigarvalikhanli@gmail.com
The Transformative Impact of Globalization on Developing Economies
Abstract
This article examines the complex and multidimensional impact of globalization on developing economies. Globalization, driven by expanding trade, foreign direct investment, technological exchange, and migration, has become a powerful force shaping economic transformation. It provides developing countries with wider access to international markets, encourages export growth, supports industrialization, and attracts capital, modern technology, and management expertise. These advantages can increase productivity, improve consumer welfare, and contribute to poverty reduction. However, globalization also creates serious challenges. Domestic industries in emerging economies often struggle to compete with large multinational firms, which may result in job losses and greater income inequality. In addition, dependence on global markets increases vulnerability to financial crises, commodity price fluctuations, and other external shocks. Competition for investment may also weaken labor and environmental standards. The article concludes that the benefits of globalization can be made more inclusive and sustainable only through strong domestic policies focused on education, infrastructure, institutional development, and long-term economic resilience.
Keywords: globalization, emerging economies, transformative impact, current situation, development dynamics