The Effect of Globalization on Economic Growth: Panel Data Analysis for ASEAN Countries

Abstract

Globalization is generally expressed as the integration of countries into the external world in economic, social and political contexts. One of the most important indicators of the level of development of a country is the economic growth performance of the mentioned country. It is therefore important to examine whether the globalization process affects economic growth. Although both the developing countries and the developing ones are deeply affected by the globalization process, it's clearly visible that developing South Asian economies get use of globalization better than many other regions of the world by implementing successful policy planning and policy implementations. In this framework, this study investigates the effect of globalization on economic growth of the member countries of ASEAN. The data used in the study is obtained from globalization index of KOF Swiss Economic Institute and national accounts database of UNCTAD. GDP and three dimensions of globalization variables of the ASEAN countries are evaluated using panel data analysis within the scope of study. The results of the analysis show that globalization has a significant effect on economic growth of the member countries of the ASEAN.