The effect of social media and globalisation on economic growth: A review on G7 countries

Technological developments have significantly changed the communication dimensions among people in the 20th century. Social media which has evolved with technological developments has changed and improved the communication practice of human life to this scale. While the ancient people communicated with primitive methods by blowing out smoke, flying pigeons, drawing figures to stone and walls; present day people have the opportunity to instantly communicate thanks to new digital communication devices such as cell phones, computers, social media which technologic development has brought to our lives and the globalization concept has entered our lives. In this thesis study, the data on the effects of economic growth and globalization in the G7 countries during the period between 1992-2018 has been compiled. To examine, Panel VAR analysis was used as an econometric method. According to the Panel VAR analysis results, it is seen that the increase of globalization in the G7 countries affects the economic growth negatively. Besides, the effect of social media on economic growth was examined and it was determined that the increase in bandwidth and internet usage included in the model had a positive effect on economic growth. G7 countries need to make policy decisions according to their own circumstances and priorities. For this reason, it is important that each G7 country to formulate specialized policy recommendations and to follow their own internal policy processes. In addition, creating platforms that encourages exchanging experience and knowledge among G7 countries and providing international cooperation can also increase the effects of policy proposals.