GLOBALIZATION AND GROSS DOMESTIC PRODUCT CONSTRUCTION IN ASEAN

There is no more doubt about the importance of economic growth, which can be calculated from Gross Domestic Product (GDP). This research analyzes the role of globalization on GDP in ASEAN-5 by estimating panel data. It uses a fixed effect approach to accommodate various characteristics in the countries. To accommodate such variation, it assumes that the intercepts varies across these countries, while the slopes remain similar. Based on the estimation result, it suggests that net export and foreign direct investment represent the globalization process. Both have positive and significant influences on GDP in the corresponding countries.