By turning away from the real world, children's ability to distinguish facts from fantasy diminish. They'll be inefficient in doing everything and failing to develop effective behavioral patterns.
Such children tend to be alone, timid and unable to form close human relationships. They seem nervous and apathetic, and easily escape into unrealistic fantasy.
Withdrawal reaction occurs in children who feel a human relationship is more frustrating than fun. Children who're never given the opportunity to mingle with adults and others tend to be shy. It could be the shy attitude is inherited from one of their parents.
Excessive parental protection also gives impressions you don't believe your children can cope with difficult situations, thus it further strengthens their incompetence senses. Repeated failure due to lacking of skill mastery can lead to anxiety in children or withdrawal pattern when they faced with threatening situation.
Bring your children to opportunity to get along with others and gradually, confront them in real situation that can cause fear, for example, splitting with you for a longer time. Let your children invite their friends to come to the house, or otherwise, they're also allowed to play at.
Encourage your children to do everything themselves.