The Impact of Globalization on Economic Growth in ASEAN
Abstract: The establishment of
ASEAN (Association of Southeast Asian Nations) as one of the most
highly-integrated regional organizations is the reflection of the process of
globalization. This high integration is characterized by international
cooperation in economic, social and political policies. One of the positive
impacts of globalization itself is the increasing economic growth. However,
this economic growth is disproportionately distributed among countries. In
Southeast Asia, this is shown by the fact that the rising globalization in
ASEAN is not always followed by the increase in economic growth. By using the
KOF Index of Globalization that covers three main dimensions: economic
integration, social integration, and political integration, this research paper
looked into the impact of globalization on economic growth. Based on the panel
data of six developing countries in ASEAN from 2006 to 2012, this research
paper found that the overall index of globalization had positively and
significantly impacted the economic growth in the region. Economic and
political globalization also positively impacted the economic growth. However,
the social globalization did not affect the growth. Inflation, infrastructure,
quality of education, technological preparedness and government spending also
had positive impact on economic growth.
Author: Stannia Cahaya Suci,
Alla Asmara, Sri Mulatsih
Journal Code: jpadministrasinegaragg150047