This paper applies panel data analysis to examine the influence of short-run dynamics and
long-run equilibrium relationships 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. We revisited 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 economic globalization 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 nonsignificant negative effect.