The Effect of Economic Globalization on Unemployment Rate in Six ASEAN Countries

Abstract

This study aims to determine the effect of Economic Globalization, Economic Growth and Inflation on Unemployment in six ASEAN countries (Indonesia, Malaysia, Philippines, Singapore, Thailand and Vietnam), using annual data for the period 2007 to 2021. Data were obtained from the World Bank, and the economic globalization was the KOF Globalization Index. The study employed the Autoregressive Distributed Lag (ARDL) panel method. The unit root test revealed that the variables were integrated of order I(0) and I(1). The results show that in the long run, economic globalization and inflation have a negative and significant effect on unemployment in six ASEAN countries. Meanwhile, economic growth has a positive and insignificant effect on unemployment in six ASEAN countries. In the short run, only inflation in the previous period has a positive and significant effect on unemployment in six ASEAN countries.