<p>This study explores the under-examined effect of globalization on economic vulnerability across 142 countries from 1990 to 2018, addressing contradictions in extant literature. Using fixed-effects panel regression analyses, we find that globalization’s effect on economic vulnerability is complex and varies by country characteristics. Overall, globalization significantly reduces economic vulnerability, particularly in East Asian and Pacific nations, as well as Sub-Saharan African countries, while showing negligible effects in other regions. The study also highlights the sensitivity of this effect to social, economic, and political globalization dimensions across regions. The study also confirms a consistent negative relationship between globalization and economic vulnerability during three sub-periods (1990–1999, 2000–2009, and 2010–2018). These findings remain robust through various estimation techniques, including the two-step system generalized method of moments, sequential two-stage estimation of linear panel data models, feasible generalized least squares estimation, and panel-corrected standard error estimation. The study further identifies five potential transmission channels through which globalization affects economic vulnerability: trade liberalization, international labor mobility, institutional quality, income inequality, and environmental quality. These insights encourage policymakers to implement a multifaceted strategy aimed at mitigating the risks associated with globalization while maximizing its beneficial contributions to reducing economic vulnerability.</p>