Deglobalization and its effects on the world economy: a literature review
DOI:
https://doi.org/10.61799/2216-0388.1938Keywords:
Deglobalization, World Economy, Protectionism, Value Chains, Geopolitics, Foreign Direct Investment.Abstract
The deglobalization phenomenon has acquired a central relevance in the international economy, implying a partial reversal or a marked slowdown in the integration of markets and capital that defined globalization. This work’s main objective is to synthesize and review the existing scientific literature on deglobalization, focusing on the analysis of its structural causes and its complex consequences for the world economy. The methodology employed was a systematic bibliographic review, which allowed for the identification and categorization of the main trends and findings in the field. The results of this review suggest that the causes of the phenomenon are predominantly political and institutional, driven by the stagnation of trade liberalization, the rise of protectionist policies, and increasing geopolitical tensions stemming from conflicts like the US-China trade war and the war in Ukraine. The structural impact of the 2008 Global Financial Crisis and the re-shoring of value chains prompted by automation are also recognized. Regarding consequences, deglobalization leads to greater global economic fragmentation, manifested in the shortening and restructuring of global supply chains. This relocation inevitably implies an increase in production costs and, consequently, inflationary pressures. The trend is also associated with a decline in foreign direct investment, an increase in volatility, and a deterioration in multilateral cooperation. It is concluded that deglobalization represents a phase of fragmentation and deceleration rather than a total collapse, whose implications require further study on the adaptive capacity of regional economies.
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