Globalization and Urbanization in Asian Developing Economies: Dynamics, Impacts, and Opportunities

Abstract

This study examines the relationship between globalization and urbanization in developing Asian economies over the period 1990–2024. Globalization is measured using the KOF Globalization Index, while urbanization and other macroeconomic variables are obtained from the World Development Indicators. A panel-data framework is employed, with model selection guided by the Hausman test and the relationships estimated using feasible generalized least squares. The findings show that globalization has a positive and statistically significant effect on urbanization, indicating that greater international economic, social, and political integration accelerates urban development. Consumer prices, income inequality, government expenditure, population growth, and socioeconomic conditions also exert positive and significant effects on urbanization. These results suggest that globalization promotes urban expansion by increasing trade, investment, industrial activity, employment opportunities, and access to public services in cities. However, rapid urbanization may also intensify income inequality, infrastructure pressures, and environmental challenges. The study highlights the need for developing Asian economies to adopt inclusive and sustainable urban policies that improve infrastructure, strengthen public services, reduce regional disparities, and ensure that the benefits of globalization-led urbanization are distributed more equitably.