The Role of Foreign Direct Investment on Ecological Footprint of the ASEAN-5 Nations
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This study investigates the effect of foreign direct investment (FDI) on ecological footprint in 5 ASEAN countries: Indonesia, Malaysia, the Philippines, Singapore, and Thailand. We implement the autoregressive distributed lag (ARDL) model to acquire the outcomes of short-run and long-run coefficients using annual data during 1980 to 2018. Furthermore, Toda-Yamamoto Granger causality test is employed to assure the robustness of our study. The empirical findings reveal that positive effects of FDI on ecological footprint are detected in Indonesia and Malaysia, while Thailand has negative connection between FDI and the ecological footprint. However, there is no significant impact of FDI on ecological footprint in the Philippines and Singapore. In addition, the results from control variables indicate that GDP per capita shows positive impact on ecological footprint in Indonesia, whereas, it has a negative effect in Malaysia, Singapore and Thailand. The exports have no impact on ecological footprint in all 5 ASEAN countries. Nonetheless, energy consumption exhibit positive association with ecological footprint for all 5 ASEAN members.
Abstract
This study investigates the effect of foreign direct investment (FDI) on ecological footprint in 5 ASEAN countries: Indonesia, Malaysia, the Philippines, Singapore, and Thailand. We implement the autoregressive distributed lag (ARDL) model to acquire the outcomes of short-run and long-run coefficients using annual data during 1980 to 2018. Furthermore, Toda-Yamamoto Granger causality test is employed to assure the robustness of our study. The empirical findings reveal that positive effects of FDI on ecological footprint are detected in Indonesia and Malaysia, while Thailand has negative connection between FDI and the ecological footprint. However, there is no significant impact of FDI on ecological footprint in the Philippines and Singapore. In addition, the results from control variables indicate that GDP per capita shows positive impact on ecological footprint in Indonesia, whereas, it has a negative effect in Malaysia, Singapore and Thailand. The exports have no impact on ecological footprint in all 5 ASEAN countries. Nonetheless, energy consumption exhibit positive association with ecological footprint for all 5 ASEAN members.
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