EXAMINING THE IMPACTS OF DEMOCRACY ON THE ECONOMIC GROWTH OF ASEAN COUNTRIES AIMED COVID-19: A PANEL DATA ANALYSIS

Abstract

Covid-19 has impacted the ASEAN nations' economic expansion as of late 2021. Any nation's democratically elected government is tasked with defending its citizens' economic rights. Due to this pandemic, people expect more from the government to provide the best food, medical services, and economic stability. This study investigates how democracy has affected the economic development of ASEAN nations during the COVID-19 epidemic. The results of this study show that democratic governments in ASEAN nations had significant difficulties in containing a pandemic's negative economic effects. This study adds crucial information to the body of literature explaining how democratic governments contribute to the stability and economic success of the ASEAN member states. Using a panel of 10 ASEAN nations as subjects, this article examines the relationship between democratic government and economic growth from 2000–2022. Our key conclusions can be summed up as follows: First, we find that, for four different metrics of democracy, the influence of democracy on economic development is unfavorable and statistically significant. This result holds for all four metrics. Second, the same outcome was found when the GMM system was examined. The theoretical ramifications of this study would investigate a novel theory explaining the connection between democratically elected governments and potential pandemics in the future. Additionally, the useful ramifications of this study would offer a blueprint for future policy creation to address crucial pandemic-related challenges.