Globalization and globalization processes have made a significant impact on the worldview formation and positions taken by countries. Technological advances have facilitated the transport of goods and connected all parts of the world, while the information technology has made the data and information easily accessible. Trade, global economic crises, international institutions and multinational companies are just a few of the elements closely associated with globalization and their influence is discussed in the thesis. The opinions of the public and the scientific community about the impacts of globalization are very diverse. On the one hand, globalization is viewed as a phenomenon that has intensified economic inequality in favour of the wealthiest, solidifying their position, offering a view of globalization as the contemporary method of colonisation. On the other hand, globalization processes have homogenised a non-homogeneous world, and the catalytic processes of globalization have resulted in the economic inequality reduction and a faster development of underdeveloped areas. The components of globalization are visible in its effect on the four most important elements: the economy, society, politics and ecology. In order to determine the influence of a certain phenomenon, it is necessary to measure it, which also enables us to understand the interdependence between its elements and it opens up an opportunity to influence the outcome. Globalization is omnipresent and countries cannot ignore its influence, while the impacts of globalization are predominantly positive. The result of globalization in a specific country depends heavily on that country’s view of globalisation and on its development strategies. A continued neglect of the importance of planning and development of strategies leads to a slowdown in growth and development, resulting in a country falling behind in all aspects of globalization, along with its citizens’ lower standard of living. The purpose of this doctoral thesis is to give a comprehensive overview of the globalization elements and the development of globalization worldwide. Its goal in particular is to investigate the effect of globalization processes on the development of the Croatian economy. The Croatian economy has gone through a tumultuous period from the proclamation of country’s independence to the present day. The war destructions and transition processes have left a deep mark. The globalization processes have significantly affected the Republic of Croatia and one of the objectives of this doctoral thesis is to provide a more comprehensive account of globalization trends within the framework of the Croatian economy in the recent history, i.e. since 1995. The empirical part of the thesis analyses the impact of globalization on the Croatian economy by creating a composite globalization index on the basis of which the impact has been quantified. Furthermore, in order to gain a better insight, a comparison of the economic and globalization indicators was made between Croatia and other transitioning neighbouring countries, the economies of which share a similar transition path. Based on the data analysis of the selected countries within the European Union, i.e. Bulgaria, the Czech Republic, Hungary, Romania, Slovakia and Slovenia, and by comparing them with the Croatian economy data, it can be observed that the abovementioned countries have taken a better advantage of globalization processes than Croatia and that their economic development is much faster and stronger. Their experience can prove to be motivating for the Republic of Croatia to strengthen its resolve to take a better advantage of its geographical position and resources and to put them in use in order to strengthen its economy and create a welfare state.