Correlation and Regression Analysis of the Impact of Economic Globalization on the Development of National Markets

Abstract

The study of consequential relations between economic globalization and the number of subsidiaries of leading TNCs revealed that their development largely depends on the country's involvement in the globalized space. Correlation analysis confirmed the existence of a relationship between TNCs and GDP, which is the main macroeconomic indicator that reflects the participation of countries in export-import operations. Analysis by industry confirmed that economic globalization contributes to the growth of TNCs through increased GDP, regardless of the type of goods and services. On the contrary, TNCs can also have a positive impact on GDP, supporting the scale of economic globalization. Regression analysis and construction of regression models revealed the specifics of the impact of economic globalization on the development of TNCs in countries with different socio-economic conditions. This specificity consists in differences in the influence of one set of factors on the number of foreign branches of TNCs in countries with different levels of development. This confirms the controversy of the phenomenon of economic globalization and indicates that the growth of TNCs is possible only in countries with high indicators of economic globalization. The development of countries is asymmetric, so the spread of globalization processes is also uneven, which indicates the different response of economies to their influence.