Economic Globalization in Asean Countries: A Panel Cointegration Analysis

Kandi Dwi Pratiwi; Ika Yuni Wulansari

doi:10.15294/edaj.v11i4.56323

Kandi Dwi Pratiwi Badan Pusat Statistik https://orcid.org/0000-0002-1780-6014
Ika Yuni Wulansari STIS Polytechnic of Statistics https://orcid.org/0000-0002-8649-1626

DOI: https://doi.org/10.15294/edaj.v11i4.56323

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.

Author Biographies

Kandi Dwi Pratiwi, Badan Pusat Statistik

PRATIWI, Kandi Dwi is a staff at the Cross Regional Account Consolidation Subfunction, Regional Production Account Consolidation Function, Directorate of Production Account, Badan Pusat Statistik, Jakarta. She was born on October 5, 1998 in Langsa City, Aceh, Indonesia. She continued her education at the Statistical Polytechnic of STIS, Jakarta, Indonesia, 2016, in the Diploma IV Statistics study program, specializing in Economics. She completed her bachelor DIV Statistics (S.Tr.Stat.) at the STIS Polytechnic of Statistics in 2020. She is also a data analyst and consultant especially in applied statistics, mathematics, economics, and data mining since 2018. She is a runner up of National Statistics Challenge at Brawijaya University in 2019.

Ika Yuni Wulansari, STIS Polytechnic of Statistics

WULANSARI, Ika Yuni is an assistant professor at STIS Polytechnic of Statistics. She was born on June 2, 1986 in Blitar City, East Java, Indonesia. She completed her bachelor DIV Statistics (SST) at the Sekolah Tinggi Ilmu Statistik (STIS) in 2008. She earned her master, 2015, in Applied Statistics from Padjadjaran University. She is also a senior researcher and secretary for the Diploma IV Program at STIS Polytechnic of Statistics, Jakarta, Indonesia. She has several articles in the International Journal of Innovation, Creativity and Change (IJICC) and Journal of Critical Reviews (JCR). Both are international journals indexed by Scopus. She also has several other articles published in national journals that are accredited by the Ministry of Research, Technology and Higher Education.