Effect of Globalization on Unemployment in ASEAN
Downloads
In recent decades globalization has become increasingly evolving. The existence of openness between countries facilitates the establishment of mutually beneficial cooperation between various countries. The formation of ASEAN organizations is one example of the existence of globalization. This research aims to analyze the influence of globalization, especially economic, social, political and economic growth and wages on unemployment in ASEAN. This research uses regression analysis of panel data. Zurich and the World Bank in the period 2000-2017. The results of the study concluded that the variables of globalization as a whole, social and political globalization have a significant negative effect on unemployment. The wage control variable has a significant negative effect, while economic growth has a negative but insignificant effect on unemployment. Meanwhile, economic globalization has a positive effect on the unemployment rate in ASEAN.
Adamu, P., Kaliappan, S. R., Bani, Y., & Nor, M. N. (2017). Impact of globalization on unemployment in Sub-Saharan African (SSA) countries. Governance and Sustainability of Global Business Economics, 302-310.
Adrian, E. (2009). THE CORRELATION BETWEEN UNEMPLOYMENT AND REAL GDP GROWTH. A STUDY CASE ON ROMANIA Dumitrescu Bogdan Andrei. the Correlation Between Unemployment and Real Gdp Growth. a Study Case on Romania, 317–322.
Aljileedi Mustafa Rayhan, A., Rusdarti, R., & Yanto, H. (2020). Factors Influencing Unemployment Rate: A Comparison Among Five Asean Countries. Journal of Economic Education, 9(1), 37–45. https://doi.org/10.15294/jeec.v9i1.38358
Altiner, A., Bozkurt, E., Toktaş, Y., & Etkisi, Ü. (2018). The Effect of Economic Globalization on Unemployment in Emerging Market Economies Yükselen Piyasa Ekonomilerinde Ekonomik Küreselleşmenin Ä°şsizlik. 22, 1763–1783.
Awad, A., & Youssof, I. (2016). The impact of economic globalisation on unemployment: The Malaysian experience. Journal of International Trade and Economic Development, 25(7), 938–958. https://doi.org/10.1080/09638199.2016.1151069
Baah-Boateng, W. (2013). Determinants of Unemployment in Ghana. African Development Review, 25(4), 385–399. https://doi.org/10.1111/1467-8268.12037
Bacchetta, M., Ernst, E., & Bustamante, J. P. (2009). Globalization and informal jobs in developing countries. In Globalization and informal jobs in developing countries. https://doi.org/10.30875/f801556b-en
Bhowmik, D. (2016). Relation Between GDP Growth Rate and Unemployment Growth Rate in India Since the Reform Period. Prestige International Journal of Management and IT-Sanchayan, 5(1), 83–100. https://doi.org/10.37922/PIJMIT.2016.V05i01.008
Borjas, J. (2005). Labor Economics : Third Edition. In Social Policy.
Borrell, J. R. (2006). Globalization: A curse or a blessing on the road to the Millennium Development Goals? 1.
Chowdhury, M. S. R., & Hossain, M. T. (2014). Determinants of Unemployment in Bangladesh: A Case Study. SSRN Electronic Journal, 4(3), 16–20. https://doi.org/10.2139/ssrn.2402908
Clark, W. C., & Cash, D. W. (2019). Evaluating the Influence of Global Environmental Assessments. Global Environmental Assessments, January. https://doi.org/10.7551/mitpress/3292.003.0004
Daly, V., Ullah, F., Rauf, A., & Khan, G. Y. (2017). Globalization and Unemployment in Pakistan. Asian Economic and Financial Review, 7(7), 634–643. https://doi.org/10.18488/journal.aefr.2017.77.634.643
Davidson, C., & Matusz, S. J. (2004). International Trade and Labor Markets: Theory, Evidence, and Policy Implications. In International Trade and Labor Markets: Theory, Evidence, and Policy Implications. https://doi.org/10.17848/9781417505920
Dee, P., Francois, J., Manchin, M., Norberg, H., Nordås, H. K., & Van, F. (2011). The Impact of Trade Liberalisation on Jobs and Growth. 107. https://doi.org/10.1787/5kgj4jfj1nq2-en
Dhas, A., & Helen, M. (2008). Impact of Globalisation and Economic Reforms on Employment in India. University Library of Munich, Germany, MPRA Paper.
Doğan, T. T. (2012). Macroeconomic Variables and Unemployment : The Case of Turkey. International Journal of Economics and Financial Issues, 2(1), 71–78.
Dreher, A. (2006). Does globalization affect growth? Evidence from a new index of globalization. Applied Economics, 38(10), 1091–1110. https://doi.org/10.1080/00036840500392078
Dutt, P. (2007). International Trade and Unemployment : Theory and Cross-National Evidence. 1999, 1–32.
Dutt, P., Mitra, D., & Ranjan, P. (2009). International trade and unemployment: Theory and cross-national evidence. Journal of International Economics, 78(1), 32-44.
Effendi, Y., & Suska. (2014). Asean Investment Forum Untuk Mendorong Investasi Di Kawasan Asean Yang Lebih Tinggi. 1–4.
Egger, H., & Kreickemeier, U. (2009). Firm heterogeneity and the labor market effects of trade liberalization. International Economic Review, 50(1), 187-216.
Egger, H., & Kreickemeier, U. (2017). Firm heterogeneity and the labor market effects of trade liberalization. International Trade and Labor Markets: Welfare, Inequality, and Unemployment, February 2007, 265–306. https://doi.org/10.1142/9789813224919_0010
Farid, A. (2007). Analisis Tingkat Pengangguran di Indonesia Tahun 1980-2007 [The Analysis of Unemployment Rate in Indonesia on 1980-2007]. Fakultas Ekonomi Universitas Diponegoro Semarang. 1–31.
Felbermayr, G., Prat, J., & Schmerer, H. J. (2011). Globalization and labor market outcomes: Wage bargaining, search frictions, and firm heterogeneity. Journal of Economic Theory, 146(1), 39–73. https://doi.org/10.1016/j.jet.2010.07.004
Firmansyah, R., & Kusreni, S. (2018). POVERTY RATE DURING THE 1998 AND 2008 CRISIS PERIOD IN 5 ASEAN COUNTRIES. Journal of Developing Economics, 3(1), 49–60.
Folawewo, A. O., & Adeboje, O. M. (2014). Macroeconomic Determinants of Labour Market Outcomes in Economic Community of West African States. The Indian Economic Journal, 62(1), 803–819. https://doi.org/10.1177/0019466220140107
Garavito, J. B. de. (2000). L2 acquisition of Spanish DPs: The status of grammatical features. In BUCLD 24: Proceedings of the 24th annual Boston University conference on language development (Nomor May). https://doi.org/10.1007/978-94-010-0291-2
Georgantopoulos, A. G., & Tsamis, A. D. (2011). The macroeconomic effects of budget deficits in greece: A VAR-VECM approach. International Research Journal of Finance and Economics, 79(December 2011), 156–166.
Gocer, I., & Erdal, L. (2015). The Relationship Between Youth Unemployment and Economic Growth in Central and Eastern European Countries: An Emprical Analysis. Çankırı Karatekin Üniversitesi Ä°ktisadi ve Ä°dari Bilimler Fakültesi Dergisi, 5(1), 173–188.
Gozgor, G. (2014). The impact of trade openness on the unemployment rate in G7 countries. Journal of International Trade and Economic Development, 23(7), 1018–1037. https://doi.org/10.1080/09638199.2013.827233
Gozgor, G. (2017). The Impact of Globalization on the Structural Unemployment: An Empirical Reappraisal. International Economic Journal, 31(4), 471–489. https://doi.org/10.1080/10168737.2017.1408666
Gygli, S., Haelg, F., Potrafke, N., & Sturm, J. E. (2019). The KOF Globalisation Index – revisited. Review of International Organizations, 14(3), 543–574. https://doi.org/10.1007/s11558-019-09344-2
Hasan, R., Mitra, D., Ranjan, P., & Ahsan, R. N. (2012). Trade liberalization and unemployment: Theory and evidence from India. Journal of Development Economics, 97(2), 269–280. https://doi.org/10.1016/j.jdeveco.2011.04.002
Heid, B., Langer, J., & Larch, M. (2012). Income and democracy: Evidence from system GMM estimates. Economics Letters, 116(2), 166–169. https://doi.org/10.1016/j.econlet.2012.02.009
Helpman, E., Itskhoki, O., & Redding, S. (2010). Inequality and Unemployment in a Global Economy. Econometrica, 78(4), 1239–1283. https://doi.org/10.3982/ecta8640
Jensen, F., & Asmarini, W. (2016). Net Oil Importer Indonesia Leaves Producer Club OPEC, Again. https://www.reuters.com/article/us-opec-meeting-indonesia-idUSKBN13Q3M7
Jordan, R. (2009). Singapore in its Worst Recession for Years. The Effects of the Current Economic Crisis on the City-State's Economy. Journal of Current Southeast Asian Affairs, 28(4), 95–110. https://doi.org/10.1177/186810340902800405
Kaur, A. (2010). Labour migration trends and policy challenges in Southeast Asia. Policy and Society, 29(4), 385–397. https://doi.org/10.1016/j.polsoc.2010.09.001
Knotek II, E. S. (2007). How useful is Okun's law?. Economic Review-Federal Reserve Bank of Kansas City, 92(4), 73.
Lane, P., & Milesi-Ferretti, G. (2017). International Financial Integration in the Aftermath of the Global Financial Crisis. IMF Working Papers, 17(115), 1. https://doi.org/10.5089/9781484300336.001
Lini, Z. Z., & Sasana, H. (2019). Pengaruh Tingkat Globalisasi Terhadap Pengangguran Di ASEAN [The Effect of Globalization on Unemployment Rate in ASEAN]. Jurnal REP (Riset Ekonomi Pembangunan), 4(1), 13–26.
Mankiw, N. G. (2008). Macroeconomics (Fifth Edit). South-Western Cengage Learning.
Maqbool, S. (2019). Determinants of Unemployment Empirical Evidences from Pakistan Empirical Evidences from Pakistan. January 2013.
Maqbool, M. S., Mahmood, T., Sattar, A., & Bhalli, M. N. (2013). Determinants of unemployment: Empirical evidences from Pakistan. Pakistan Economic and Social Review, 191-208.
Misini, S., & Pantina, M. B. (2017). The effect of economic growth on nutrition. Journal of Economics and Economic Education Research, 18(2), 1–9. https://doi.org/10.1080/03670244.1976.9990437
Moore, M. P., & Ranjan, P. (2005). GLOBALISATION VS SKILL-BIASED TECHNOLOGICAL CHANGE: IMPLICATIONS FOR UNEMPLOYMENT AND WAGE INEQUALITY. The Economic Junal, 391–422.
Moosa, I. A. (2008). Economic Growth and Unemployment In Arab Countries: Is Okun's Law Valid ? International Conference on "The Unemployment Crisis in the Arab Countries”, 17-18 march, 10(2), 1–19.
Muscatelli, V. A., & Tirelli, P. (2001). Unemployment and growth: Some empirical evidence from structural time series models. Applied Economics, 33(8), 1083–1088. https://doi.org/10.1080/00036840010003276
Norris, P. (2000). Global Governance & Cosmopolitan Citizens. Governance in a Globalizing World, 155–177.
Ogunwa, S. A. (2012). Globalisation and Developing Countries. Insight on Africa, 4(1), 1–18. https://doi.org/10.1177/0975087814411143
Olimpia, N., & Stela, D. (2017). Impact of Globalisation On Economic Growth in Romania: An Empirical Analysis of Its Economic, Social and Political Dimensions. Studia Universitatis „Vasile Goldis” Arad – Economics Series, 27(1), 29–40. https://doi.org/10.1515/sues-2017-0003
Oniore, J. O., Bernard, A. O., & Gyang, E. J. (2015). Macroeconomic Determinants of Unemployment in Nigeria. International Journal of Economics, Commerce and Management, III(10), 215–230.
Özel, H. A., Sezgin, F., & Topkaya, O. (2013). Investigation of Economic Growth and Unemployment Relationship for G7 Countries Using Panel Regression Analysis. International Journal of Business and Social Science, 4(6), 163–171.
Panigrahi, S. K., Azizan, N. A., Sorooshian, S., & Thoudam, P. (2020). Effects of inflation, interest and unemployment rates on economic growth: Evidence from Asean countries. ABAC Journal, 40(2), 140–155.
Pitartono, R., & Hayati, B. (2012). Analisis Tingkat Pengangguran Di Jawa Tengah [The Analysis of Unemployment Rate in Central Java]. Diponegoro Journal Of Economics , 1(1), 1–10. https://ejournal3.undip.ac.id/index.php/jme/article/view/648
Redding, S. J., & Helpman, E. (2014). Inequality and Unemployment in A Global Economy. DISCUSSION PAPER SERIES, 7353. https://doi.org/10.3982/ECTA8640
Rubcova, A. (2010). Okun's law: Evidence from the baltic states. SSE Riga Student Research Papers, 9, 126.
Saich, T. (2000). Globalization, Governance, and the Authoritarian State: China. In Governance in a Globalizing World (hal. 208–228). Brookings Institution Press.
Soylu, Ö. B., Çakmak, Ä°., & Okur, F. (2018). Economic growth and unemployment issue: Panel data analysis in Eastern European Countries. Journal of International Studies, 11(1), 93–107. https://doi.org/10.14254/2071-8330.2018/11-1/7
Suci, S. C., Asmara, A., & Mulatsih, S. (2015). The Impact of Globalization on Economic Growth in ASEAN. Bisnis & Birokrasi Journal, 22(2). https://doi.org/10.20476/jbb.v22i2.5696
Suci, S. C., & Ramdansyah, A. D. (2019). Economic, Social and Political Openness on Unemployment in ASEAN. Journal of Economics and Business, 2(4).
Tello, C. L. Z. (2015). DETERMINANTS OF UNEMPLOYMENT RATE IN SELECTED ASEAN (ASSOCIATION OF SOUTHEAST ASIAN NATIONS) MEMBER STATES: A PANEL DATA ANALYSIS. April.
Todaro, M. P., & Smith, S. C. (2003). Economic Development. Addison-Wesley.
Virén, M. (2001). The Okun curve is non-linear. Economics Letters, 70(2), 253–257. https://doi.org/10.1016/S0165-1765(00)00370-0
World Bank. (2020). Economic Growth. https://data.worldbank.org/
World Bank. (2020). Wage Developments. https://data.worldbank.org/
World Bank. (2020). Unemployment Rates. https://data.worldbank.org/
Yabuuchi, S. (2011). Outsourcing , Income Distribution , and Unemployment.
Yao, R., & Zhang, H. H. (2005). Optimal consumption and portfolio choices with risky housing and borrowing constraints. Review of Financial Studies, 18(1), 197–239. https://doi.org/10.1093/rfs/hhh007
Ying, Y., & Lee, C. (2014). THE IMPACT OF GLOBALIZATION ON ECONOMIC GROWTH. Romanian Journal of Economic Forecasting, XVII(2), 25–34.
Zurich (CH). (2019). ETH Zurich (KOF Swiss Economic Institute) 2019. http://globalization.kof.ethz.ch/
Copyright (c) 2022 Maratul Iftitah, Deni Kusumawardani
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
JIET (Jurnal Ilmu Ekonomi Terapan) (p-ISSN: 2541-1470; e-ISSN: 2528-1879) is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License
Authors who publish with JIET (Jurnal Ilmu Ekonomi Terapan) agree to the following terms:
- The journal allows the author to hold the copyright of the article without restrictions.
- The journal allows the author(s) to retain publishing rights without restrictions
- The legal formal aspect of journal publication accessibility refers to Creative Commons Attribution ShareAlike 4.0 International License (CC BY-SA).
