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Financial Development and Environmental Degradation in ASEAN-5

This study investigates the relationship between financial development and environmental degradation in ASEAN-5 countries namely Indonesia, Malaysia, Philippines, Singapore, and Thailand over the period of 2000 to 2014. The Panel Unit Root test, Panel Cointegration test, Vector Error Correction M...

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Main Authors: Rosita, Hamdan, Rossazana, Ab. Rahim, Sang, Sook Fah
Format: Article
Language:English
Published: Human Resource Management Academic Research Society (HRMARS) 2018
Subjects:
HG Finance
Online Access:http://ir.unimas.my/id/eprint/25335/3/Financial.pdf
http://ir.unimas.my/id/eprint/25335/
http://dx.doi.org/10.6007/IJARBSS/v8-i12/4987
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spelling my.unimas.ir.253352022-06-28T03:22:15Z http://ir.unimas.my/id/eprint/25335/ Financial Development and Environmental Degradation in ASEAN-5 Rosita, Hamdan Rossazana, Ab. Rahim Sang, Sook Fah HG Finance This study investigates the relationship between financial development and environmental degradation in ASEAN-5 countries namely Indonesia, Malaysia, Philippines, Singapore, and Thailand over the period of 2000 to 2014. The Panel Unit Root test, Panel Cointegration test, Vector Error Correction Model (VECM) Granger Causality, and Fully Modified Ordinary Least Square (FMOLS) are used in this study to examine the short-run and the long-run as well as the causality relationship among the variables. Variables employed in this study are carbon dioxide (CO2) emissions, foreign direct investment (FDI), private domestic credit (DC), and market capitalization (MC). The empirical findings show that all the variables are stationary at order I(1) and there is a cointegration relationship among the variables. The results show that there is a bidirectional causality relationship between the CO2 and FDI. Meanwhile, there is a unidirectional causality running from CO2 to DC, MC to FDI, and MC to DC respectively. The strong policy and institution structures are suggested to improve environmental degradation through new technologies and financial development and financial reforms play a role in protecting the environment. Human Resource Management Academic Research Society (HRMARS) 2018 Article PeerReviewed text en http://ir.unimas.my/id/eprint/25335/3/Financial.pdf Rosita, Hamdan and Rossazana, Ab. Rahim and Sang, Sook Fah (2018) Financial Development and Environmental Degradation in ASEAN-5. International Journal of Academic Research in Business and Social Sciences, 8 (12). pp. 14-32. ISSN 2222-6990 http://dx.doi.org/10.6007/IJARBSS/v8-i12/4987 DOI: 10.6007/IJARBSS/v8-i12/4987
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 HG Finance
spellingShingle HG Finance
Rosita, Hamdan
Rossazana, Ab. Rahim
Sang, Sook Fah
Financial Development and Environmental Degradation in ASEAN-5
description This study investigates the relationship between financial development and environmental degradation in ASEAN-5 countries namely Indonesia, Malaysia, Philippines, Singapore, and Thailand over the period of 2000 to 2014. The Panel Unit Root test, Panel Cointegration test, Vector Error Correction Model (VECM) Granger Causality, and Fully Modified Ordinary Least Square (FMOLS) are used in this study to examine the short-run and the long-run as well as the causality relationship among the variables. Variables employed in this study are carbon dioxide (CO2) emissions, foreign direct investment (FDI), private domestic credit (DC), and market capitalization (MC). The empirical findings show that all the variables are stationary at order I(1) and there is a cointegration relationship among the variables. The results show that there is a bidirectional causality relationship between the CO2 and FDI. Meanwhile, there is a unidirectional causality running from CO2 to DC, MC to FDI, and MC to DC respectively. The strong policy and institution structures are suggested to improve environmental degradation through new technologies and financial development and financial reforms play a role in protecting the environment.
format Article
author Rosita, Hamdan
Rossazana, Ab. Rahim
Sang, Sook Fah
author_facet Rosita, Hamdan
Rossazana, Ab. Rahim
Sang, Sook Fah
author_sort Rosita, Hamdan
title Financial Development and Environmental Degradation in ASEAN-5
title_short Financial Development and Environmental Degradation in ASEAN-5
title_full Financial Development and Environmental Degradation in ASEAN-5
title_fullStr Financial Development and Environmental Degradation in ASEAN-5
title_full_unstemmed Financial Development and Environmental Degradation in ASEAN-5
title_sort financial development and environmental degradation in asean-5
publisher Human Resource Management Academic Research Society (HRMARS)
publishDate 2018
url http://ir.unimas.my/id/eprint/25335/3/Financial.pdf
http://ir.unimas.my/id/eprint/25335/
http://dx.doi.org/10.6007/IJARBSS/v8-i12/4987
_version_ 1738514622715002880
score 13.211869

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