Economic Development Analysis Journal
Vol 11 No 4 (2022): Economics Development Analysis Journal

Economic Globalization in Asean Countries: A Panel Cointegration Analysis

Kandi Dwi Pratiwi (Badan Pusat Statistik)
Ika Yuni Wulansari (STIS Polytechnic of Statistics)



Article Info

Publish Date
18 Dec 2022

Abstract

Economic globalization refers to the increasing interdependence of world economies due to the growing scale of cross-border trade of commodities and services, the flow of international capital and the vast and rapid spread of technologies. The process of economic globalization in improving the economy takes time. ASEAN consists of ten countries and each has different behaviors. The development of economic globalization and the speed in increasing economic openness for each ASEAN country is different, hence the need to analyze the relationship between time and across countries using panel data. Therefore, this study aims to analyse further the effect of economic globalization on ASEAN GDP in the short and long term. It uses ICT, economic freedom, and economic openness (trade openness and financial openness) as proxies of economic globalization. The analysis method is a panel cointegration analysis and Dumitrescu-Hurlin panel causality test. The result shows that GDP growth is significantly influenced by ICT, financial openness, and economic freedom in the long term. This study reveals that economic freedom affects GDP growth positively in the long term. Conversely, ICT and financial openness have drawbacks in the long run. Meanwhile, only ICT and trade openness significantly influence GDP growth in the short term. Finally, this study reveals that economic globalization has different impacts on the economy in the short and long term.

Copyrights © 2022






Journal Info

Abbrev

edaj

Publisher

Subject

Economics, Econometrics & Finance

Description

Focus and Scope Economic Development Analysis Journal is a scientific journal who published by Department of Economic Development, Faculty of Economics, Universitas Negeri Semarang, Indonesia. this journal published four times per year on February, May, August, and November and start publishing ...