The impact of globalization on economic growth

This paper applies panel data analysis to examine the influence of short-run dynamics and long-run equilibriumrelationships between globalization and the growth of ASEAN countries between 1970 and 2008. We divided globalization into three categories to investigate its impact on economic growth. Werevisited the issue of identifying the global determinants of economic growth using panel cointegration tests, which fully supports the contention that globalization has a strong integrated relationship with economic growth. Using panel fully-modified OLS (FMOLS), we determined that the elasticity of economic growth with respect to economicglobalization is 1.48, indicating that economic globalization has a significantly positive influence on economic growth. However, our results also show that social globalization has a negative influence on economic growth, while political globalization has a non-significant negative effect.