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FDI-ENVIRONMENTAL QUALITY NEXUS: SOUTHEAST ASIAN TIGER CUB ECONOMIES

Foreign Direct Investment (FDI) is a crucial catalyst for economic growth in countries, especially in the Southeast Asian Tiger Cub economies, including Indonesia, Malaysia, the Philippines, Thailand, and Vietnam. Nonetheless, the impact of foreign direct investment on environmental quality may diff...

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Main Authors: Yong, Sze Wei, Jerome Kueh, Swee Hui
Format: Article
Language:English
Published: UNIMAS Publisher 2024
Subjects:
HA Statistics
HB Economic Theory
Online Access:http://ir.unimas.my/id/eprint/46694/1/9-IJBS-SI2024-9-FDI-Environmental%2BQuality%2BNexus-Southeast%2BAsian%2BTiger%2BCubs%2BEconomies%20%281%29.pdf
http://ir.unimas.my/id/eprint/46694/
https://publisher.unimas.my/ojs/index.php/IJBS/article/view/8207
https://doi.org/10.33736/ijbs.8207.2024
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spelling my.unimas.ir-466942024-11-22T02:39:19Z http://ir.unimas.my/id/eprint/46694/ FDI-ENVIRONMENTAL QUALITY NEXUS: SOUTHEAST ASIAN TIGER CUB ECONOMIES Yong, Sze Wei Jerome Kueh, Swee Hui HA Statistics HB Economic Theory Foreign Direct Investment (FDI) is a crucial catalyst for economic growth in countries, especially in the Southeast Asian Tiger Cub economies, including Indonesia, Malaysia, the Philippines, Thailand, and Vietnam. Nonetheless, the impact of foreign direct investment on environmental quality may differ by region. This study aims to investigate the impact of the FDI on carbon dioxide emission among Tiger Cub economies. Panel Autoregressive Distributed Lag (ARDL) and quadratic estimation methods are adopted in the study to estimate the relationship between FDI and carbon dioxide emission from 1995 to 2022, in view of linearity and non-linearity aspects. Empirical findings indicate that there is a negative relationship between FDI and carbon dioxide emission in the long run under the linearity model and supported the Pollution Halo Hypothesis (PHH). Furthermore, the non-linearity results show that existence on inverted U-Shaped relationship between FDI and carbon dioxide emission. There is a positive impact of FDI on carbon dioxide emission when FDI is below the threshold level, while there is a negative impact of FDI on carbon dioxide emission when FDI is above the threshold level. The government should encourage green investment by offering business incentives or carbon credits, with a focus on high-value sectors such as advanced manufacturing, technology, renewable energy and research and development, as well as promoting technology transfer and innovation to attract foreign direct investment and stimulate economic growth, all while reducing environmental degradation. UNIMAS Publisher 2024-11 Article PeerReviewed text en http://ir.unimas.my/id/eprint/46694/1/9-IJBS-SI2024-9-FDI-Environmental%2BQuality%2BNexus-Southeast%2BAsian%2BTiger%2BCubs%2BEconomies%20%281%29.pdf Yong, Sze Wei and Jerome Kueh, Swee Hui (2024) FDI-ENVIRONMENTAL QUALITY NEXUS: SOUTHEAST ASIAN TIGER CUB ECONOMIES. International Journal of Business and Society, 25 (SI). pp. 127-137. ISSN 15116670 https://publisher.unimas.my/ojs/index.php/IJBS/article/view/8207 https://doi.org/10.33736/ijbs.8207.2024
institution Universiti Malaysia Sarawak
building Centre for Academic Information Services (CAIS)
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Malaysia Sarawak
content_source UNIMAS Institutional Repository
url_provider http://ir.unimas.my/
language English
topic HA Statistics
HB Economic Theory
spellingShingle HA Statistics
HB Economic Theory
Yong, Sze Wei
Jerome Kueh, Swee Hui
FDI-ENVIRONMENTAL QUALITY NEXUS: SOUTHEAST ASIAN TIGER CUB ECONOMIES
description Foreign Direct Investment (FDI) is a crucial catalyst for economic growth in countries, especially in the Southeast Asian Tiger Cub economies, including Indonesia, Malaysia, the Philippines, Thailand, and Vietnam. Nonetheless, the impact of foreign direct investment on environmental quality may differ by region. This study aims to investigate the impact of the FDI on carbon dioxide emission among Tiger Cub economies. Panel Autoregressive Distributed Lag (ARDL) and quadratic estimation methods are adopted in the study to estimate the relationship between FDI and carbon dioxide emission from 1995 to 2022, in view of linearity and non-linearity aspects. Empirical findings indicate that there is a negative relationship between FDI and carbon dioxide emission in the long run under the linearity model and supported the Pollution Halo Hypothesis (PHH). Furthermore, the non-linearity results show that existence on inverted U-Shaped relationship between FDI and carbon dioxide emission. There is a positive impact of FDI on carbon dioxide emission when FDI is below the threshold level, while there is a negative impact of FDI on carbon dioxide emission when FDI is above the threshold level. The government should encourage green investment by offering business incentives or carbon credits, with a focus on high-value sectors such as advanced manufacturing, technology, renewable energy and research and development, as well as promoting technology transfer and innovation to attract foreign direct investment and stimulate economic growth, all while reducing environmental degradation.
format Article
author Yong, Sze Wei
Jerome Kueh, Swee Hui
author_facet Yong, Sze Wei
Jerome Kueh, Swee Hui
author_sort Yong, Sze Wei
title FDI-ENVIRONMENTAL QUALITY NEXUS: SOUTHEAST ASIAN TIGER CUB ECONOMIES
title_short FDI-ENVIRONMENTAL QUALITY NEXUS: SOUTHEAST ASIAN TIGER CUB ECONOMIES
title_full FDI-ENVIRONMENTAL QUALITY NEXUS: SOUTHEAST ASIAN TIGER CUB ECONOMIES
title_fullStr FDI-ENVIRONMENTAL QUALITY NEXUS: SOUTHEAST ASIAN TIGER CUB ECONOMIES
title_full_unstemmed FDI-ENVIRONMENTAL QUALITY NEXUS: SOUTHEAST ASIAN TIGER CUB ECONOMIES
title_sort fdi-environmental quality nexus: southeast asian tiger cub economies
publisher UNIMAS Publisher
publishDate 2024
url http://ir.unimas.my/id/eprint/46694/1/9-IJBS-SI2024-9-FDI-Environmental%2BQuality%2BNexus-Southeast%2BAsian%2BTiger%2BCubs%2BEconomies%20%281%29.pdf
http://ir.unimas.my/id/eprint/46694/
https://publisher.unimas.my/ojs/index.php/IJBS/article/view/8207
https://doi.org/10.33736/ijbs.8207.2024
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score 13.223943

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