There are a lot of economists believed that on the one hand, globalization had reduced domestic factor role, but on the other hand, it increased the global factor role in determining inflation. This study is aimed to prove these beliefs. Data is analyzed using pooled data and FEM (fixed effect model). The results show that the domestic output gap does not influence domestic inflation. In contrary, the global output gap positively influences domestic inflation. It means that the results of this study support the belief.
Cite this paper
Sri Nawatmi, Agung Nusantara, Agus Budi Santosa, R. A. Marlien. (2020) Globalization Impact On Asean Countries Inflation. International Journal of Economics and Management Systems, 5, 141-145
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