GLOBALIZATION AND GROSS DOMESTIC PRODUCT CONSTRUCTION IN ASEAN

<p>There is no m</p><p>ore doubt about the importance of economic growth, which can be calculated from<br />Gross Domestic Product (GDP). This research analyzes the role of globalization on GDP in<br />ASEAN-5 by estimating panel data. It uses a fixed effect approach to accommodate various characteristics<br />in the countries. To accommodate such variation, it assumes that the intercepts varies<br />across these countries, while the slopes remain similar. Based on the estimation result, it suggests<br />that net export and foreign direct investment represent the globalization process. Both have positive<br />and significant influences on GDP in the corresponding countries.</p><p><br />Keywords: Globalization, international trade, foreign direct investment, gross domestic product<br />JEL classification numbers: E01, F51, F43