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The Asymmetric Effect of Trade, Financial, and Political Globalization on Economic Development in ASEAN+3

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Credible Asset Allocation, Optimal Transport Methods, and Related Topics (TES 2022)

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Abstract

This study investigates the heterogeneous effect of trade globalization, financial globalization and political globalization on economic development in ASEAN+3 countries (Brunei, Cambodia, Laos, Indonesia, Malaysia, Myanmar, the Philippines, Singapore, Thailand, Vietnam, China, Japan and South Korea) over the period 1990–2016 using Panel quantile cointegration regression approach. The results of long run relationship show the asymmetric effect of trade globalization on economic development with a strong positive effect in low economic development countries but a negative effect in high economic development countries. Meanwhile, political globalization has only the positive effect on economic development for both poorer and richer nations, but the coefficient values vary across quantiles. Finally, financial globalization shows the weak contribution to economic development. Furthermore, the short run relationship between economic development and each globalization variable evidently exists with a weak negative speed of adjustment toward equilibrium.

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Acknowledgements

The authors would like to thank the Dr. Laxmi Worachai for her helpful comments on an earlier version of the paper. This research work was partially supported by Chiang Mai University.

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Authors and Affiliations

  1. Faculty of Economics, Center of Excellence in Econometrics, Chiang Mai University, Chiang Mai, 50200, Thailand

    Wilawan Srichaikul, Paravee Maneejuk & Woraphon Yamaka

Authors
  1. Wilawan Srichaikul
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  2. Paravee Maneejuk
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  3. Woraphon Yamaka
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Corresponding author

Correspondence to Paravee Maneejuk .

Editor information

Editors and Affiliations

  1. Faculty of Economics, Chiang Mai University, Chiang Mai, Thailand

    Songsak Sriboonchitta

  2. Department of Computer Science, University of Texas, El Paso, TX, USA

    Vladik Kreinovich

  3. Faculty of Economics, Center of Excellence in Econometrics, Chiang Mai University, Chiang Mai, Thailand

    Woraphon Yamaka

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Srichaikul, W., Maneejuk, P., Yamaka, W. (2022). The Asymmetric Effect of Trade, Financial, and Political Globalization on Economic Development in ASEAN+3. In: Sriboonchitta, S., Kreinovich, V., Yamaka, W. (eds) Credible Asset Allocation, Optimal Transport Methods, and Related Topics. TES 2022. Studies in Systems, Decision and Control, vol 429. Springer, Cham. https://doi.org/10.1007/978-3-030-97273-8_22

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