Analysis of the Effect of Globalization on Economic Well-Being in Iran: Emphasizing the Dimensions and Components of Globalization

Many variables affect well-being, one of which is globalization. Globalization has many dimensions and layers, among which economic, social and political dimensions are of special importance. In this research, KOF globalization index is used. This index consists of three economic, social and political dimensions and each dimension has two De Facto and De Jure components. In this study, economic well-being was first calculated with the composite index of well-being. Then, in the form of four model, the impact of each of the dimensions of globalization and their components on Iran’s economic well-being was investigated and tested in the period of 1979-2020 with using the ARDL model.  The long run results indicate that all three dimensions of globalization (economic, political and social) have a positive effect on economic well-being. Both De Facto and De Jure components of economic and political globalization have a positive effect on economic well-being. Although De Jure component of social globalization has a positive effect on economic well-being, but its De Facto does not have a significant effect on economic well-being. Another finding is that economic growth and real GDP per capita have a positive effect and inflation has a negative effect on economic well-being.