GLOBALISATION AND UK ECONOMY

The Economic and Financial implication of Globalisation on the UK Economy



The Economic and Financial implication of Globalisation on the UK Economy

Introduction

This research was proposed to explore the impact of globalization on the UK economy, primarily focusing on the sub problems previously mentioned in chapter one. By analyzing and testing the Hypotheses, we will be able to interpret this information and use it to support and justify the overall impact globalization has played on the UK economy.

Design of study

This study will put into practice quantitative research methods using a deductive top down approach as shown below.

Quantitative research mainly relies on subjective information because the participants' input acts as the primary source of information to the researcher (Creswell, 2001). It involves any form of data that can be expressed numerically or can be counted.  Qualitative research will not be used, this research generates data that is based on the participants' own categories of meaning, it is useful for studying a limited number of cases in detail, and tends to collect data in realistic settings (Creswell, 2001). However, quantitative research method has been adopted for this current study mainly because of the reason that it is the most suitable.

Scope of the study

The study will specifically deal with time series data in order to check whether there is structural change. By structural change, it mean that the value of the parameters do not remain the same for the entire time period (UK Economic Indicators, n.d.).

The current study has taken into account the output generated in the GDP, rate of unemployment, deregulation and technological impacts during the period from 1985-2005. Therefore this study will address the overall implications of globalization from an economical and financial perspective in conjunction with the research question to determine the overall impact on the UK economy.

Hypotheses

The following Hypotheses are used in this dissertation for testing.

The null (H0) and the alternative hypothesis (H1) are described below for each of the problems.

Hypothesis 1

What impact did deregulation have on globalization in the UK economy?

The hypotheses for this sub problem are:

H0: There is no relation between deregulation and globalization on economy in UK.

H1: There is a relation between deregulation and globalization on economy in UK

Globalisation is loosely defined as the economic activity taking place across the national boundaries (Buckman 2004). In essence, globalization sought to liberalize trade as well as deregulate the economy and this particular study seeks to investigate the extent to which deregulation has impacted on the economy of UK. Quantitative methods will be used to collect data in order to ascertain the impact of deregulation on UK economy.

The premise of this sub problem is that globalization and deregulation have ties with the level of economic performance in UK. The nature of deregulation and the relationship between globalization may also influence the levels of economic growth and performance.

Hypothesis 2

How has technology affected globalization in the UK economy?

The hypotheses for this sub problem are:

H0: Technology has not affected globalization in the UK ...