DIRECT AND INDIRECT EFFECT OF GLOBALIZATION ON ECONOMIC GROWTH IN INDONESIA

Qurrota Ayu Nindien (), Arivina Ratih Yulihar Taher (), Asih Murwiati (), I Wayan Suparta () and Neli Aida ()
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Qurrota Ayu Nindien: Faculty of Economic and Business, University of Lampung, Bandar Lampung, Indonesia
Arivina Ratih Yulihar Taher: Faculty of Economic and Business, University of Lampung, Bandar Lampung, Indonesia
Asih Murwiati: Faculty of Economic and Business, University of Lampung, Bandar Lampung, Indonesia
I Wayan Suparta: Faculty of Economic and Business, University of Lampung, Bandar Lampung, Indonesia
Neli Aida: Faculty of Economic and Business, University of Lampung, Bandar Lampung, Indonesia

Scientific Bulletin - Economic Sciences, 2024, vol. 23, issue 1, 33-44

Abstract: This study examines how path analysis of globalization variables can have a direct effect on economic growth. This study uses the Path Analysis method by reviewing the dynamic modeling between Economic Globalization (GEI), Social Globalization (SGI), Economic Cooperation (KEI), and Economic Growth (GDP) for the period 1970 to 2020 in Indonesia. World Bank and KOFGI ETH Zurich Switzerland publish this data. The results showed that in model (1), there was a direct and significant effect between the KEI variable and GEI of 0.792. Then, in the model (2), the F test or joint test between the GEI, KEI, and SGI variables to GDP has a direct and significant effect. Then, partially, GEI has an immediate and significant impact on GDP, and SGI has a direct and significant effect on GDP. GEI is an intermediary variable for KEI to lead to the path effect to GDP, and this is in accordance with the hypothesis that KEI has an indirect effect on GDP.

Keywords: Economic Globalization; Path Analysis; KOFGI (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:pts:journl:y:2024:i:1:p:33-44

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