Globalization and Digitalization in the Dynamics of Economic Welfare in ASEAN and BRICS Countries
DOI:
https://doi.org/10.52249/ilr.v5i3.654Keywords:
economic dynamics, globalization, digital transformation, economic welfare, ASEAN–BRICS regionAbstract
This study examines the dynamics of economic welfare in ASEAN and BRICS
countries within the context of globalization and digitalization, as measured by per
capita income, unemployment rates, and poverty levels. Employing a panel data
regression method covering 15 countries over the period 2007–2024, the findings
indicate that globalization and digitalization shape welfare patterns that are
heterogeneous and highly dependent on country-specific characteristics. Globalization,
represented by trade openness and foreign direct investment (FDI), is associated with
increases in per capita income and reductions in unemployment, although its impact on
poverty alleviation remains uneven. Meanwhile, digitalization, measured through
internet penetration, demonstrates a significant positive association with income
growth and poverty reduction, underscoring the role of digital technology in expanding
economic inclusion. Beyond global factors, welfare dynamics are also influenced by
domestic conditions, particularly the quality of governance and the effectiveness of
social policies. These findings highlight the importance of integrated and adaptive
development strategies that respond to global dynamics and digital transformation.
Policy recommendations include strengthening institutional capacity, promoting job
oriented investment, and expanding digital infrastructure and literacy to narrow socio
economic disparities in the era of digital globalization.
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