The Impact of Globalization on Welfare and Gender Equality in Indonesia

Abstract

In recent years, there has been a growing debate about the future of globalization, with somecalling for a reevaluation of its principles and practices. Issues such as income inequality,people’s welfare, and the impact on local communities have prompted discussions on how tomake globalization more inclusive, sustainable, and equitable. In this study, there are three topicsthat will be discussed. First, this study will analyze the impact of economic globalizationmeasured by foreign direct investment on people’s welfare and gender equality. Second, thisstudy will analyze the impact of social globalization measured by the proportion of individualswith mobile phones and the number of foreign guests at star-rated hotels on people’s welfare andgender equality. Third, this study will analyze the impact of gender equality on people's welfare.This research used data from 34 provinces in Indonesia for the period of 2015-2021, which wassourced from the Central Bureau of Statistics. The data analysis methods employed in thisresearch are Panel Least Squares and Panel Cross-Section Random Effects. This researchdiscovered both positive and negative impacts of globalization. On the positive side, socialglobalization manifested through increased mobile phone ownership, positively impacting thehuman development index, life expectancy, and gender equality. Gender equality also positivelyimpacts human development index and life expectancy. On the negative side, foreign directinvestment has failed to yield a positive impact on welfare. Furthermore, the presence of foreigntourists staying in star-rated hotels has a negative impact on life expectancy and gender equality.