The Impact of Globalization on Quality of Life: An Empirical Investigation for Asian Countries

Abstract

The main objective of the study is to investigate the impact of globalization on the quality of life in the Asian countries. The panel data for Asian countries was analized for the period from 1995 to 2015. The Human Development Index (Proxy variable of quality of life) was used as dependent variable, and political, economic and social globalization were used as independent variables. The stationarity of variables was checked and we found that all variables (LPG, LEG, LSG, HDI, KOF, LGDP, and PR) were not stationary at level but at first difference all variables were stationary. Pedroni and Johansan co-integration tests were used to find the long-run relationship among the variables. Fully Modified OLS shows that there is a positive impact of political, economic and social globalization on the quality of life in the Asian countries in the long run. The results of this study show that globalization enhances the quality of life of their residents by improving Human Development Index of Asian countries. Not only KOF Index but its main aspects (political, economic and social globalization) also play a role in improving quality of life in the Asian countries.