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Globalisation and mental health: is globalisation good or bad for mental health? Testing for quadratic effects

Published online by Cambridge University Press:  04 December 2023

Saqib Amin*
Affiliation:
The Department of Economics, Accounting and Finance, Oulu Business School, University of Oulu, P.O. Box 4600, Oulu, FIN-90014, Finland
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Abstract

This paper explores the relationship between globalisation and mental health by using the global dataset of high-, middle-, and low-income countries for the period 1970–2020. Although the consequences of globalisation on general health have been extensively studied, limited attention has been paid to investigating the implications on mental health. To show robustness, globalisation has been divided into three main dimensions such as economic globalisation, political globalisation, and social globalisation while, mental health has been classified through various indicators, i.e., mental disorder, anxiety disorder, and depressive disorder. The study used panel fixed effect techniques to demonstrate the quadratic effects of globalisation on mental health. A U-shaped curve relationship between globalisation (including economic, political, and political globalisation) and mental disorders, anxiety disorders, and depressive disorders was identified. However, findings also indicate an inverted U-shaped curve relationship between globalisation and mental health for high-income countries and a U-shaped curve relationship for middle- and low-income countries. Prioritizing mental health is crucial for overall well-being and productivity. Furthermore, a comprehensive policy implementation is strongly recommended to protect societies from mental distress when a country plans to expand globalisation worldwide.

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Type
Article
Copyright
Copyright © The Author(s), 2023. Published by Cambridge University Press
Figure 0

Figure 1. Comparative map of world globalisation of 1970 and 2019.Source: KOF Globalisation Index, Swiss Economic Institute.

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Figure 2. Worldwide view of mental disorders.Source: IHME, Global Burden of Disease, Published online at OurWorldInData.org. Retrieved from: ‘https://ourworldindata.org/mental-health’ [Online Resource].

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Figure 3. The theoretical relationship between Globalisation and mental health. A simplified theoretical model linking globalisation and mental health. The idea of globalisation is represented by a number of connected sub-indices i.e., economic globalisation, political globalisation, and social globalisation. On the right of the diagram, we represent the main indicators related to mental health, i.e., mental disorders, anxiety, and depressive disorders. The figure is updated that was previously published in Song (2015).

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Figure 4. U-shaped and inverted U-shaped curve relationship between globalisation and mental health.Source: Author's design.

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Table 1. Description of the variables used and their expected signs in the regression

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Table 2. Descriptive statistics

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Table 3. Fixed effects estimates of globalisation and sub-indices on mental disorder (MD)

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Table 4. Fixed effects estimates of globalisation and sub-indices on anxiety disorder (AD)

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Table 5. Fixed effects estimates of globalisation and sub-indices on depressive disorder (DD)

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Table 6. Fixed effects estimates of globalisation and sub-indices on mental disorder (MD) in high-, middle- and low-income country groups

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Table 7. Fixed effects estimates of globalisation and sub-indices on anxiety disorder (AD) in high-, middle- and low-income country groups

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Table 8. Fixed effects estimates of globalisation and sub-indices on depressive disorder (DD) in high-, middle- and low-income country groups