Globalization And Economic Growth: Evidence From A Panel Analysis Of The Regional Comprehensive Economic Partnership (RCEP) Countries

Abstract

This study examines how economic globalisation has shaped economic growth in eleven RCEP countries using secondary data covering 1990 to 2023. Drawing on panel Dynamic Ordinary Least Squares estimation and Granger causality analysis, the study evaluates the influence of key globalisation channels, including trade openness, foreign direct investment, remittances, electricity access, and internet penetration. The findings show that trade openness, access to electricity, and internet use are strongly associated with higher income levels, while remittances exert a smaller but still positive effect. Foreign direct investment is the only variable that performs weakly, reflecting its limited long-run contribution in the region. The results also reveal a two-way reinforcing relationship, where globalisation supports economic expansion and rising incomes, in turn, encourages greater openness and investment in essential infrastructure. Based on these insights, the study recommends sustained trade liberalisation, broader digital and energy access, more effective use of remittances, and a shift toward higher-quality, productivity-enhancing foreign investment to strengthen growth across the RCEP bloc.