This study examines the institutional factors that affect effective governance by analysing the impact of economic, political, and social globalisation on governance quality, as well as how these interactions are moderated by fiscal capacity and public health expenditure. The analysis utilises panel data from 224 observations from ASEAN Countries. It applies the Pooled Mean Group (PMG), Mean Group (MG), and Dynamic Fixed Effect (DFE) ARDL estimators, yielding novel empirical insights based on institutional theory. The error-correction terms in all models are markedly negative, indicating the presence of long-term equilibrium adjustments in the globalisation-governance relationship. In the long term, economic globalisation exhibits a persistently negative and significant correlation with governance quality, according to PMG and MG estimations, suggesting that increased integration into global markets can create institutional constraints that undermine governance efficacy. In contrast, social globalisation exhibits a notable positive effect on governance, suggesting that increased societal openness and cross-cultural interaction enhance institutional accountability. Socioeconomic situations exhibit substantial long-term benefits. The moderation analysis indicates that government expenditure enhances the correlation between globalisation and governance quality, although health expenditure has inconsistent results across models. Short-term outcomes exhibit weaker and less stable correlations in contrast to long-term dynamics. The findings underscore the significance of fiscal commitment and health capability in influencing the role of globalisation in promoting good governance.

Keywords:
Globalisation
Good Governance
Institutional Theory
ARDL
ASEAN

*Corresponding Author.
E-mail address: kevindeniswaraignatius@binus.ac.id