Pub Date : 2020-12-14DOI: 10.22452/mjes.vol57no2.6
Souhaila Guedira, M. Ariff
This study is a pioneering attempt at investigating portfolio diversification benefits available to the Turkish conventional and Shari’ah-compliant investors in the Southeast Asian conventional and Islamic stock markets at different investment horizons. We use multivariate-generalized autoregressive conditional heteroscedastic (MGARCH-DCC) and wavelet approaches. The results suggest that the Malaysian stock market offers substantial diversification benefits for the Turkish conventional and Islamic investors, especially for the short-run investment horizons up to 16 days, as well as for long-term investment periods exceeding 128 days. In addition, Turkish conventional investors could also consider investing in Thailand Islamic equities in short-run holding periods up to 16 days. As for the medium investment horizons from 16 to 128 days, it is advisable for the Turkish investors to avoid investing in all the equities because of very low diversification benefits.
{"title":"Portfolio Diversification Benefits in Southeast Asian Stock Markets for Turkish Investors","authors":"Souhaila Guedira, M. Ariff","doi":"10.22452/mjes.vol57no2.6","DOIUrl":"https://doi.org/10.22452/mjes.vol57no2.6","url":null,"abstract":"This study is a pioneering attempt at investigating portfolio diversification benefits available to the Turkish conventional and Shari’ah-compliant investors in the Southeast Asian conventional and Islamic stock markets at different investment horizons. We use multivariate-generalized autoregressive conditional heteroscedastic (MGARCH-DCC) and wavelet approaches. The results suggest that the Malaysian stock market offers substantial diversification benefits for the Turkish conventional and Islamic investors, especially for the short-run investment horizons up to 16 days, as well as for long-term investment periods exceeding 128 days. In addition, Turkish conventional investors could also consider investing in Thailand Islamic equities in short-run holding periods up to 16 days. As for the medium investment horizons from 16 to 128 days, it is advisable for the Turkish investors to avoid investing in all the equities because of very low diversification benefits.","PeriodicalId":42743,"journal":{"name":"Malaysian Journal of Economic Studies","volume":" ","pages":""},"PeriodicalIF":0.8,"publicationDate":"2020-12-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42875685","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2020-06-14DOI: 10.22452/mjes.vol57no1.7
Zhi-Cheng Voon, C. Hooy, Chin-Hong Puah
Malaysia’s property market has been going through a difficult phase as the supply of property stocks are excessive with the demand unable to catch up, and hence, many unsold units remaining on the market. The primary aim of this paper is to develop an index-based housing affordability indicator known as the housing affordability leading index (HALI), which is based on the indicator compilation approach founded by the National Bureau of Economic Research (NBER). The time-varying Markov switching (TVMS) model is then employed to assess the transition probabilities of the constructed housing affordability indicator. The transition probabilities estimate the prospects of the housing affordability condition and how long it will stay in that particular condition before having any major turnover. As the data employed was monthly data from year 2000 to year 2015, the constructed HALI successfully reflects the prior movements of the non-index housing affordability indicator price to income ratios (PIR). The empirical results show that the HALI has an average leading period of 9.5 months when taking the PIR as a benchmark of coincidence indicator for housing affordability movement.
{"title":"An Augmented Measurement of the Housing Affordability Cycles in Malaysia","authors":"Zhi-Cheng Voon, C. Hooy, Chin-Hong Puah","doi":"10.22452/mjes.vol57no1.7","DOIUrl":"https://doi.org/10.22452/mjes.vol57no1.7","url":null,"abstract":"Malaysia’s property market has been going through a difficult phase as the supply of property stocks are excessive with the demand unable to catch up, and hence, many unsold units remaining on the market. The primary aim of this paper is to develop an index-based housing affordability indicator known as the housing affordability leading index (HALI), which is based on the indicator compilation approach founded by the National Bureau of Economic Research (NBER). The time-varying Markov switching (TVMS) model is then employed to assess the transition probabilities of the constructed housing affordability indicator. The transition probabilities estimate the prospects of the housing affordability condition and how long it will stay in that particular condition before having any major turnover. As the data employed was monthly data from year 2000 to year 2015, the constructed HALI successfully reflects the prior movements of the non-index housing affordability indicator price to income ratios (PIR). The empirical results show that the HALI has an average leading period of 9.5 months when taking the PIR as a benchmark of coincidence indicator for housing affordability movement.","PeriodicalId":42743,"journal":{"name":"Malaysian Journal of Economic Studies","volume":" ","pages":""},"PeriodicalIF":0.8,"publicationDate":"2020-06-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48614354","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2020-06-14DOI: 10.22452/mjes.vol57no1.2
P. Trang, Vu Hoang Nam
This study uses panel data from biennially surveys of small and medium-sized enterprises during the period of 2005-2015 in the transition economy of Vietnam, and data on the quality of local business environment (measured by the provincial competitiveness index). This study uncovers that the effects of distance to the frontier (measured by the ratio of productivity of an enterprise to that of the industry leader) on innovation are negatively moderated by improved local business environment. Such an important role of the local business environment indicates that laggard enterprises, which form the majority in transition economies, are favourably supported to achieve innovation when quality of the local business environment is improved.
{"title":"Distance to the Frontier and Innovation: The Role of Local Business Environment","authors":"P. Trang, Vu Hoang Nam","doi":"10.22452/mjes.vol57no1.2","DOIUrl":"https://doi.org/10.22452/mjes.vol57no1.2","url":null,"abstract":"This study uses panel data from biennially surveys of small and medium-sized enterprises during the period of 2005-2015 in the transition economy of Vietnam, and data on the quality of local business environment (measured by the provincial competitiveness index). This study uncovers that the effects of distance to the frontier (measured by the ratio of productivity of an enterprise to that of the industry leader) on innovation are negatively moderated by improved local business environment. Such an important role of the local business environment indicates that laggard enterprises, which form the majority in transition economies, are favourably supported to achieve innovation when quality of the local business environment is improved.","PeriodicalId":42743,"journal":{"name":"Malaysian Journal of Economic Studies","volume":"1 1","pages":""},"PeriodicalIF":0.8,"publicationDate":"2020-06-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"68662284","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2020-06-14DOI: 10.22452/mjes.vol57no1.6
S. Law, T. Sarmidi, L. Goh
This study empirically investigates the effect of innovation on economic growth using the neoclassical economic growth model. Embarking from the traditional labour growth, physical capital and human capital framework, innovation is postulated to be the main driver for robust economic growth. Using time series techniques, we discover very attention-grabbing findings that highlight the impact of innovation on economic growth for Malaysia. First, the innovation measured by the quantity of a total number of a patent application is statistically insignificant. The result is robust for various innovation measurements, including total local patent application and total foreign patent application. Interestingly, switching to total patent grant instead of a total number of patent application (local or foreign), the empirical result shows a significant impact on economic growth. The finding indirectly reveals the crucial impact of quality innovation rather than the quantity concern. Neglecting both quality and the commercialisation process of these new technologies may not solve the rigidity of knowledgecommercialisation paradox. Finally, we test for the prominent institutional quality in mediating economic growth under a knowledge-based economy. The interaction between institutional quality and the total patent grant has significantly accelerated the role of innovation channel to economic growth. The empirical findings imply that inadequacy of innovative technology flow over the long term has a detrimental effect on national innovative capacity. Thus, the innovation-economic growth nexus needs to be complemented with a good institutional quality framework, skilled human capital and broader networking to commercialise the innovative product to ensure that the innovation activities promote economic growth.
{"title":"Impact of Innovation on Economic Growth: Evidence from Malaysia","authors":"S. Law, T. Sarmidi, L. Goh","doi":"10.22452/mjes.vol57no1.6","DOIUrl":"https://doi.org/10.22452/mjes.vol57no1.6","url":null,"abstract":"This study empirically investigates the effect of innovation on economic growth using the neoclassical economic growth model. Embarking from the traditional labour growth, physical capital and human capital framework, innovation is postulated to be the main driver for robust economic growth. Using time series techniques, we discover very attention-grabbing findings that highlight the impact of innovation on economic growth for Malaysia. First, the innovation measured by the quantity of a total number of a patent application is statistically insignificant. The result is robust for various innovation measurements, including total local patent application and total foreign patent application. Interestingly, switching to total patent grant instead of a total number of patent application (local or foreign), the empirical result shows a significant impact on economic growth. The finding indirectly reveals the crucial impact of quality innovation rather than the quantity concern. Neglecting both quality and the commercialisation process of these new technologies may not solve the rigidity of knowledgecommercialisation paradox. Finally, we test for the prominent institutional quality in mediating economic growth under a knowledge-based economy. The interaction between institutional quality and the total patent grant has significantly accelerated the role of innovation channel to economic growth. The empirical findings imply that inadequacy of innovative technology flow over the long term has a detrimental effect on national innovative capacity. Thus, the innovation-economic growth nexus needs to be complemented with a good institutional quality framework, skilled human capital and broader networking to commercialise the innovative product to ensure that the innovation activities promote economic growth.","PeriodicalId":42743,"journal":{"name":"Malaysian Journal of Economic Studies","volume":"1 1","pages":""},"PeriodicalIF":0.8,"publicationDate":"2020-06-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41443890","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2020-06-14DOI: 10.22452/mjes.vol57no1.5
T. A. Masron, Y. Subramanian
Using a threshold estimation technique, this study examines the validity of environmental Kuznets curve (EKC) under different institutional quality regimes. A combined set of 99 developed and developing countries over the period from 2008 to 2016 has been chosen to confirm the issue in hand. Adopting panel threshold regression technique by Hansen (1999), the paper finds evidence substantiating the presence of single threshold effect. In general, we find that EKC hypothesis does not hold in the full sample analysis, in which high income fails to bring environmental degradation down. Only in the case of a segregated sample of developed countries, we find that the impact of high income (or income square) on environmental degradation is negative and significant after a certain level of ‘high’ institutional quality has been attained. On the contrary, EKC is found to be invalid, and high income fails to be converted fully to environment-protecting activities in developing countries. Therefore, the effectiveness of income in mitigating environmental issues seems to be dampened by the poor institutional quality in developing countries.
{"title":"Threshold Effect of Institutional Quality and the Validity of Environmental Kuznets Curve","authors":"T. A. Masron, Y. Subramanian","doi":"10.22452/mjes.vol57no1.5","DOIUrl":"https://doi.org/10.22452/mjes.vol57no1.5","url":null,"abstract":"Using a threshold estimation technique, this study examines the validity of environmental Kuznets curve (EKC) under different institutional quality regimes. A combined set of 99 developed and developing countries over the period from 2008 to 2016 has been chosen to confirm the issue in hand. Adopting panel threshold regression technique by Hansen (1999), the paper finds evidence substantiating the presence of single threshold effect. In general, we find that EKC hypothesis does not hold in the full sample analysis, in which high income fails to bring environmental degradation down. Only in the case of a segregated sample of developed countries, we find that the impact of high income (or income square) on environmental degradation is negative and significant after a certain level of ‘high’ institutional quality has been attained. On the contrary, EKC is found to be invalid, and high income fails to be converted fully to environment-protecting activities in developing countries. Therefore, the effectiveness of income in mitigating environmental issues seems to be dampened by the poor institutional quality in developing countries.","PeriodicalId":42743,"journal":{"name":"Malaysian Journal of Economic Studies","volume":" ","pages":""},"PeriodicalIF":0.8,"publicationDate":"2020-06-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44434654","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2019-12-03DOI: 10.22452/mjes.vol56no2.4
S. Z. Shah, A. Z. Baharumshah, R. Said, Rafiqa Murdipi
This study examines the effects of global economic policy uncertainty (EPU) on Malaysia’s macroeconomic indicators. Three substantive findings emerged from our inquiry based on a multivariate generalized autoregressive conditional heteroscedasticity (GARCH) model: (1) Domestic uncertainty – in nominal and real terms – seems to have no material impact on the macro-economy after controlling for global uncertainty. (2) Fluctuations in the global EPU are more important than domestic uncertainty in predicting a country’s macroeconomic variables, particularly output and CPI-based inflation. The macroeconomic variables carry signs as per theoretical expectation. (3) The model predicts that external shocks exhibit a much larger impact on macroeconomic variables than those shocks originating from domestic markets. The results have deepened our insight on how the real variables correlate with external uncertainties and the fitful recovery in the recent past.
{"title":"The International Transmission of Volatility Shocks on an Emerging Economy: The Case of Malaysia","authors":"S. Z. Shah, A. Z. Baharumshah, R. Said, Rafiqa Murdipi","doi":"10.22452/mjes.vol56no2.4","DOIUrl":"https://doi.org/10.22452/mjes.vol56no2.4","url":null,"abstract":"This study examines the effects of global economic policy uncertainty (EPU) on Malaysia’s macroeconomic indicators. Three substantive findings emerged from our inquiry based on a multivariate generalized autoregressive conditional heteroscedasticity (GARCH) model: (1) Domestic uncertainty – in nominal and real terms – seems to have no material impact on the macro-economy after controlling for global uncertainty. (2) Fluctuations in the global EPU are more important than domestic uncertainty in predicting a country’s macroeconomic variables, particularly output and CPI-based inflation. The macroeconomic variables carry signs as per theoretical expectation. (3) The model predicts that external shocks exhibit a much larger impact on macroeconomic variables than those shocks originating from domestic markets. The results have deepened our insight on how the real variables correlate with external uncertainties and the fitful recovery in the recent past.","PeriodicalId":42743,"journal":{"name":"Malaysian Journal of Economic Studies","volume":" ","pages":""},"PeriodicalIF":0.8,"publicationDate":"2019-12-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42996556","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2019-12-03DOI: 10.22452/mjes.vol56no2.3
Kah Wei Leow, E. Tan
This paper assesses the relationship between poverty on the one hand and economic growth and income inequality on the other hand by utilising a panel data set of 145 economies spanning the period, 1982 to 2017. The Arellano-Bond GMM estimation technique is employed to address the potential endogeneity problem in the regression exercise. In the course of the assessment, controls are effected for different country characteristics namely, income level and the degree of income inequality. Generally, it is found that economic growth and income inequality have a stronger bearing, negatively and positively respectively, on the incidence of poverty in middleincome than in low-income economies. The two variables also appear to have a larger impact in low-income inequality than in high-income inequality economies.
{"title":"Determinants of Poverty: A Dynamic Panel Data Analysis with Controls for Income Level and Inequality","authors":"Kah Wei Leow, E. Tan","doi":"10.22452/mjes.vol56no2.3","DOIUrl":"https://doi.org/10.22452/mjes.vol56no2.3","url":null,"abstract":"This paper assesses the relationship between poverty on the one hand and economic growth and income inequality on the other hand by utilising a panel data set of 145 economies spanning the period, 1982 to 2017. The Arellano-Bond GMM estimation technique is employed to address the potential endogeneity problem in the regression exercise. In the course of the assessment, controls are effected for different country characteristics namely, income level and the degree of income inequality. Generally, it is found that economic growth and income inequality have a stronger bearing, negatively and positively respectively, on the incidence of poverty in middleincome than in low-income economies. The two variables also appear to have a larger impact in low-income inequality than in high-income inequality economies.","PeriodicalId":42743,"journal":{"name":"Malaysian Journal of Economic Studies","volume":" ","pages":""},"PeriodicalIF":0.8,"publicationDate":"2019-12-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42409331","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2019-06-10DOI: 10.22452/MJES.VOL56NO1.4
N. Ismail, M. Karim, B. Hasan-Basri
The effect of flooding on residential property values (RPV) is a major concern to all property buyers and owners. Although numerous studies have already discussed the risk of devaluation of those properties situated in flood prone areas, those that focused on the impact of flooding on residential properties in Malaysia are still limited. This paper extends existing literature by also estimating consumers’ willingness to pay for flood control measures to reduce the flood risk in Malaysia. Using the hedonic pricing model (HPM), our results suggest that the market value of urban and rural residential properties significantly decreases by 18.5 percent and 13.6 percent due to flooding, respectively. The result also shows that, respondents who are risk averse are willing to pay 35.4 percent more for flood control measures to reduce impact of flood risk compared to those who are risk takers. The results of this study can help property owners to understand the factors that contribute to property devaluation due to flooding. This study also proposes flood insurance programmes to be implemented as flooding is a major concern to real property owners.
{"title":"Hedonic Analysis of the Impact of Flood Events on Residential Property Values in Malaysia: A Study of Willingness to Pay","authors":"N. Ismail, M. Karim, B. Hasan-Basri","doi":"10.22452/MJES.VOL56NO1.4","DOIUrl":"https://doi.org/10.22452/MJES.VOL56NO1.4","url":null,"abstract":"The effect of flooding on residential property values (RPV) is a major concern to all property buyers and owners. Although numerous studies have already discussed the risk of devaluation of those properties situated in flood prone areas, those that focused on the impact of flooding on residential properties in Malaysia are still limited. This paper extends existing literature by also estimating consumers’ willingness to pay for flood control measures to reduce the flood risk in Malaysia. Using the hedonic pricing model (HPM), our results suggest that the market value of urban and rural residential properties significantly decreases by 18.5 percent and 13.6 percent due to flooding, respectively. The result also shows that, respondents who are risk averse are willing to pay 35.4 percent more for flood control measures to reduce impact of flood risk compared to those who are risk takers. The results of this study can help property owners to understand the factors that contribute to property devaluation due to flooding. This study also proposes flood insurance programmes to be implemented as flooding is a major concern to real property owners.","PeriodicalId":42743,"journal":{"name":"Malaysian Journal of Economic Studies","volume":" ","pages":""},"PeriodicalIF":0.8,"publicationDate":"2019-06-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46801145","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2019-06-10DOI: 10.22452/MJES.VOL56NO1.2
Dhakir Abbas Ali, F. Johari, M. Alias
The quality of trade data is essential for any empirical study that uses them to construct a variable representing trade. However, previous studies have largely ignored the issue of trade data discrepancy. This discrepancy occurs when a country’s claim on sectoral bilateral trade is different from the value reported by its trade partner. Using a size ratio and correlation coefficient computed from the values reported by both parties of bilateral trades, this study examines trade data discrepancy in 20 trade sectors from 1987 to 2016 between Malaysia and its three major Asian trade partners, i.e. China, Singapore and Japan. We detect alarming discrepancy in Malaysia’s trade data. We also find that this discrepancy depends on the trade partner, time and trade sector. This study calls for attention of Malaysian policymakers regarding the possibility of customs mismanagement. We recommend that future empirical studies utilising trade in the analysis to either reconcile the data or to deploy both data sources in the econometric analysis as a robustness check.
{"title":"Quality Assessment of Trade Data in Malaysia","authors":"Dhakir Abbas Ali, F. Johari, M. Alias","doi":"10.22452/MJES.VOL56NO1.2","DOIUrl":"https://doi.org/10.22452/MJES.VOL56NO1.2","url":null,"abstract":"The quality of trade data is essential for any empirical study that uses them to construct a variable representing trade. However, previous studies have largely ignored the issue of trade data discrepancy. This discrepancy occurs when a country’s claim on sectoral bilateral trade is different from the value reported by its trade partner. Using a size ratio and correlation coefficient computed from the values reported by both parties of bilateral trades, this study examines trade data discrepancy in 20 trade sectors from 1987 to 2016 between Malaysia and its three major Asian trade partners, i.e. China, Singapore and Japan. We detect alarming discrepancy in Malaysia’s trade data. We also find that this discrepancy depends on the trade partner, time and trade sector. This study calls for attention of Malaysian policymakers regarding the possibility of customs mismanagement. We recommend that future empirical studies utilising trade in the analysis to either reconcile the data or to deploy both data sources in the econometric analysis as a robustness check.","PeriodicalId":42743,"journal":{"name":"Malaysian Journal of Economic Studies","volume":" ","pages":""},"PeriodicalIF":0.8,"publicationDate":"2019-06-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43310292","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2019-06-10DOI: 10.22452/MJES.VOL56NO1.3
Duc Nha Le
Environmental issues have been ranked among the most intense debates over the past decades by governments around the world. Sustainable development goals have been top priorities in the working agenda of national cabinets and administrations which questions the chronic trade-off between environment and economic performance. This paper aims at contributing further insights into the above-mentioned linkage to the contemporary literature by testing the validity of the environmental Kuznets curve (EKC) hypothesis. By conducting a panel data analysis on ASEAN-10 countries' statistics of carbon dioxide emissions per capita (COEpc), real gross domestic product per capita (rGDPpc), foreign direct investment inflow (FDIif), trade openness index (TOI), and urbanisation (URB), the findings have empirically confirmed the valid causality running from economic growth, international trade and demographic changes to environmental degradation. Additionally, the existence of an earlier inverted U-shaped and a later N-shaped EKC has been investigated and significantly confirmed the cyclical changes of the eco-enviro trade-off. Also, this paper provides implications for policymakers to consider the cost-benefit issue in the establishment and implementation of economic and environmental protection policies.
{"title":"Environmental Degradation and Economic Growth in ASEAN-10: The Perspective of EKC Hypothesis","authors":"Duc Nha Le","doi":"10.22452/MJES.VOL56NO1.3","DOIUrl":"https://doi.org/10.22452/MJES.VOL56NO1.3","url":null,"abstract":"Environmental issues have been ranked among the most intense debates over the past decades by governments around the world. Sustainable development goals have been top priorities in the working agenda of national cabinets and administrations which questions the chronic trade-off between environment and economic performance. This paper aims at contributing further insights into the above-mentioned linkage to the contemporary literature by testing the validity of the environmental Kuznets curve (EKC) hypothesis. By conducting a panel data analysis on ASEAN-10 countries' statistics of carbon dioxide emissions per capita (COEpc), real gross domestic product per capita (rGDPpc), foreign direct investment inflow (FDIif), trade openness index (TOI), and urbanisation (URB), the findings have empirically confirmed the valid causality running from economic growth, international trade and demographic changes to environmental degradation. Additionally, the existence of an earlier inverted U-shaped and a later N-shaped EKC has been investigated and significantly confirmed the cyclical changes of the eco-enviro trade-off. Also, this paper provides implications for policymakers to consider the cost-benefit issue in the establishment and implementation of economic and environmental protection policies.","PeriodicalId":42743,"journal":{"name":"Malaysian Journal of Economic Studies","volume":" ","pages":""},"PeriodicalIF":0.8,"publicationDate":"2019-06-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45970723","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
京公网安备 11010802042870号
京ICP备2023020795号-1
扫码关注我们
求助内容：
应助结果提醒方式：