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

Authors
  • Erika Yolanda Silalahi Department of Economics Development, Faculty of Economics and Business, Universitas Sumatera Utara
  • Inggrita Gusti Sari Nasution Department of Economics Development, Faculty of Economics and Business, Universitas Sumatera Utara
Issue       Vol 8 No 1 (2025): Talenta Conference Series: Local Wisdom, Social, and Arts (LWSA)
Section       Articles
Section      

Copyright (c) 2025 Talenta Conference Series

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
Galley      
DOI: https://doi.org/10.32734/lwsa.v8i1.2417
Keywords: economic globalization economic growth inflation unemployment
Published 2025-02-28

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.