Article Sidebar

Download
PDF
Statistic
Read Counter : 92 Download : 21

Downloads

Download data is not yet available.

Main Article Content

Abstract

This study investigates the multifaceted impacts of two global megatrends—globalization and digitalization—on public welfare in the ASEAN and BRICS nations from 2007 to 2024. Amid the prevailing narrative that links both phenomena to economic progress, this thesis critically analyses the influence of proxy variables for globalization (trade openness and foreign capital inflows) and digitalization (internet penetration and social media usage), alongside crucial domestic factors such as corruption and entrepreneurship, on three primary welfare indicators: per capita income, unemployment rate, and the poverty level. The principal objective of this research is to deliver nuanced empirical evidence on how the interplay of external forces and internal conditions shapes the welfare landscape in two of the world's most dynamic economic blocs. Employing a quantitative approach through panel data regression analysis, the findings reveal complex and non- uniform relationships. The analysis indicates that trade openness and internet penetration significantly contribute to a reduction in the unemployment rate. Conversely, social media usage demonstrates a negative correlation with per capita income and a positive association with rising poverty, suggesting potential counter-productive impacts and the promotion of consumptive behaviours. Furthermore, domestic governance factors, particularly corruption, are proven to have a significant influence on impeding income growth and exacerbating employment conditions. These findings affirm that the benefits of globalization and digitalization are not automatic but are heavily contingent upon the quality of domestic institutions and policies capable of optimizing opportunities and mitigating emergent risks.

Keywords

Globalization Digitalization Welfare ASEAN BRICS Per Capita Income Unemployment Poverty Corruption Panel Data

Article Details

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

How to Cite
Bestari, M. F. O., Yusgiantoro, I. B., Trihadmini, N., & Suhartoko, Y. B. (2026). Analysis of the Impact of Globalization and Digitalization on Welfare in ASEAN and BRICS Countries. Ilomata International Journal of Management, 7(1), 381-402. https://doi.org/10.61194/ijjm.v7i1.1982

References

  1. Alfarizi, B. Z., & Heryadi, D. (2024). Global Governance in the 21st Century: A Digital Trends and Transformation. Global Local Interactions: Journal of International Relations, 4(1), 57–67.
  2. Alkharafi, N., & Alsabah, M. (2025). Globalization: An overview of its main characteristics and types, and an exploration of its impacts on individuals, firms, and nations. Economies, 13(4), 91.
  3. Amar, S., & Pratama, I. (2020). Exploring the link between income inequality, poverty reduction and economic growth: An ASEAN perspective. International Journal of Innovation, Creativity and Change, 11(2), 24–41.
  4. Amin, T. (2024). Globalization and cultural homogenization: A critical examination. Kashf Journal of Multidisciplinary Research, 1(03), 10–20.
  5. Ashenfelter, O., Engle, R. F., McFadden, D. L., & Schmidt‐Hebbel, K. (2018). Globalization: contents and discontents. Contemporary Economic Policy, 36(1), 29–43.
  6. Audi, M., Ahmad, K., Poulin, M., & Ali, A. (2025). From Globalization to Innovation: Investigating the impact of R&D, Internet Penetration, and Economic Factors on Digitalization in BRICS.
  7. Bessen, J. (2018). AI and jobs: The role of demand. National Bureau of Economic Research.
  8. Boudreaux, C. J. (2019). Entrepreneurship, institutions, and economic growth: Does the level of development matter? ArXiv Preprint ArXiv:1903.02934.
  9. Brynjolfsson, E., & McAfee, A. (2014). The second machine age: Work, progress, and prosperity in a time of brilliant technologies. WW Norton & company.
  10. Chakraborty, T., Natarajan, A., Mishra, N., & Ganguly, M. (2024). Digitalization of higher education: opportunities and threats. CRC Press.
  11. Damanik, F. H. S., Sirait, H., Minarsi, A., Abae, I., Hendratni, T. W., & Purba, J. H. V. (2025). Transformasi Ekonomi: Inovasi dan Pertumbuhan Ekonomi Global di Abad ke-21. Star Digital Publishing.
  12. Demircioglu, M. A., & Chowdhury, F. (2021). Entrepreneurship in public organizations: the role of leadership behavior. Small Business Economics, 57(3), 1107–1123.
  13. Dutton, W. H. (2004). Social transformation in an information society: Rethinking access to you and the world (Vol. 13). Unesco Paris.
  14. Esping-Andersen, G. (1990). The three worlds of welfare capitalism. Princeton University Press.
  15. Fitri, A. N., & Lutfi, M. Y. (2024). Analysis of Export, Investment, and Corruption Perceptions’ Influence on GDP Per Capita of 5 Emerging Countries in ASEAN. GREENOMIKA, 6(2), 162–171.
  16. Jaya, I. G. N. S., & Widanta, A. A. B. P. (2023). PENGARUH PENDIDIKAN, FOREIGN DIRECT INVESTMENT DAN TINGKAT PENGANGGURAN TERHADAP TINGKAT KEMISKINAN DI PROVINSI SELURUH INDONESIA. E-Jurnal Ekonomi Dan Bisnis Universitas Udayana, 12(11).
  17. Jotia, A. L., & Ntheetsang, F. (2011). Globalization: A multi-faceted terrain. LWATI: A Journal of Contemporary Research, 8(2).
  18. Koch, T., & Windsperger, J. (2017). Seeing through the network: Competitive advantage in the digital economy. Journal of Organization Design, 6(1), 6.
  19. Limbong, N., Matondang, K. A., Manalu, C. L., & Tampubolon, N. C. (2024). Analisis Dampak Globalisasi Terhadap Perdagangan Internasional. Jurnal Sosial Humaniora Sigli, 7(1), 528–537.
  20. Manyika, J., Lund, S., DC, W., & Bughin, J. (2016). Digital globalization: The new era of global flows.
  21. Marshall, T. H., & Bottomore, T. (1950). Citizenship and social class (Vol. 11). Cambridge New York.
  22. Metulini, R., Riccaboni, M., Sgrignoli, P., & Zhu, Z. (2017). The indirect effects of FDI on trade: A network perspective.
  23. Nurmuthasya, S. (2025). Analisis Pengaruh Digitalisasi dan Globalisasi Terhadap Tingkat Kemiskinan di ASEAN.
  24. O’neill, J. (2001). Building better global economic BRICs (Vol. 66). Goldman Sachs New York.
  25. Pomaza-Ponomarenko, A. L., Hren, L. M., Durman, O. L., & Bondarchuk, N. (2020). Management mechanisms in the context of digitization of all spheres of society.
  26. Rehal, V. (2024). Globalization: Advantages and Disadvantages. Spureconomics. https://spureconomics.com/globalization-advantages-and-disadvantages/?utm_source=chatgpt.com
  27. Syadullah, M., Adriansyah, B. G., & Wibowo, T. (2019). Impact of economic and non-economic factors on income inequality in ASEAN countries. Asian Economic and Financial Review, 9(12), 1346.
  28. Terdpaopong, K., Musa, K., & Said, J. (2025). Quality of Governance in ASEAN: Examining the Roles of ICT, Globalization, and Socioeconomics Across Different Welfare Contexts. Pertanika Journal of Social Sciences & Humanities, 33(3).
  29. Uddin, I., & Rahman, K. U. (2023). Impact of corruption, unemployment and inflation on economic growth evidence from developing countries. Quality & Quantity, 57(3), 2759–2779.
  30. Van Deursen, A. J. A. M., & Van Dijk, J. A. G. M. (2019). The first-level digital divide shifts from inequalities in physical access to inequalities in material access. New Media & Society, 21(2), 354–375.
  31. World Bank. (2019). World Development Report 2021: Data for better lives. The World Bank.
  32. Zhang, X., Chang, M., Zhang, C., Zhang, S., & Lin, Q. (2025). The Impact of Internet Use on Income Inequality from Different Sources Among Farmers: Evidence from China. Agriculture, 15(8), 818.