Finding the Gap between Economic Globalization Index and Economic Growth Challenges in Indonesia, Malaysia, and Thailand

The relationship of globalization to economic growth is a topic of debate in the literature on economic growth and development. Several studies have found positive effects of globalization on growth through effective allocation of domestic resources, diffusion of technology, increased factor productivity, and capital gains. On the other hand, others argue that globalization harms growth in countries with weak institutions, political instability, and in countries that specialize in activities that are not effective in the globalization process. This study investigates the gap between economic globalization represented by KOF Index and economic growth in selected ASEAN countries such as Indonesia, Malaysia, and Thailand. It supported a competitive business climate in free trade, reducing barriers and taxes in international trade, attracting foreign investment in line with improving infrastructure, financing exports, and building facilities in the form of infrastructure as a place for business transit and business licensing processes. So that in the absence of easy access in economic globalization, rapid progress in innovation, market opening, and an increase in productive investment can lead to continued economic growth. However, economic openness is accompanied by restrictive policies that protect domestic industries and defense investment policies.