Globalization and Economic Development in Developing Countries: Opportunities, Challenges, and Sustainability

Abstract

Globalization is a multidimensional phenomenon that generates ambivalent impacts on developing countries. On the one hand, it offers opportunities through expanded trade, Foreign Direct Investment, and accelerated digitalization that strengthen integration into the global economy. Participation in global value chains has been shown to enhance industrialization and foster sustainable economic growth when supported by adequate domestic capacity. On the other hand, globalization also creates challenges in the form of dependency on advanced economies, income inequality, and the exploitation of natural resources. These findings align with dependency and world-systems theories, which emphasize the structural dominance of core countries over the periphery. A new direction of globalization emphasizes sustainability through the concept of green globalization, which views trade openness as a mechanism for promoting renewable energy adoption and environmentally friendly practices. The growing role of transnational actors such as non-governmental organizations and international institutions is also essential in ensuring that globalization contributes to social justice and the achievement of the Sustainable Development Goals.