Trade Openness and Environmental Degradation in Asean-5 Countries

Ling, Tham Yee; Ab-Rahim, Rossazana; Mohd-Kamal, Khairil-Annuar

doi:10.6007/ijarbss/v10-i2/6958

Cited by 12 publications

(5 citation statements)

References 22 publications

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“…On the other hand, trade openness has a positive and significant effect on environmental degradation. This finding is consistent with previous empirical studies such as Tran and Do (2021), Tiba andBelaid (2020), andLing et al (2020). According to Ling et al (2020), trade openness will have an indirect positive relationship with emissions in the shortrun, while this relationship will be positive and direct in the long run since trade openness can result in the production of pollution-intensive products in one region (say, developing countries) and importing other products from developed countries as a result of technological advancement and the demand for environmental regulation in developed countries.…”

Section: Discussion Of Findingssupporting

confidence: 93%

An Empirical Analysis of the role of Institutional Quality in the Relationship between Foreign Development Assistance and Environmental Degradation in Developing Countries

Ozioko,

Abd Rahman,

Mohamad

et al. 2024

IJAREMS

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This study examines the issue of environmental quality in 69 developing countries from the perspective of the Foreign Development Assistance (FDA) and the role of institutional quality over the period of 2000-2018, using the Generalized Method of Moment (GMM) and Least Square Dummy Variable Corrected (LSDVC). The results show that FDA have a positive but insignificant impact on the environment in the GMM approach, while it is significant in the LSDVC estimator. This indicates that the FDA does significantly increase the levels of environmental degradation in developing countries. In other words, it can be concluded that the FDA may significantly determine the levels of environmental degradation in developing countries. Furthermore, the results revealed that the interaction between FDA and institutional quality is negative and significant. This implies that FDA may reduce the levels of environmental degradation in developing countries if the governments effectively channel the funds received from foreign donors into several development agenda especially in the presence of good institutions, since FDA are other means of filling the financial gap that exists in developing countries. Therefore, we recommend that policymakers concentrate on improving the quality of institutions since it significantly determines the environmental impact of FDA. IntroductionGlobal pollution levels are increasing as global economic activity intensifies, and the ensuing cross-border pollution has become a major point of contention in current international talks and policy disputes among various countries. Acid rain, water pollution, and global warming are all examples of this type of transboundary contamination. When negative international

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Section: Discussion Of Findingssupporting

confidence: 93%

An Empirical Analysis of the role of Institutional Quality in the Relationship between Foreign Development Assistance and Environmental Degradation in Developing Countries

Ozioko,

Abd Rahman,

Mohamad

et al. 2024

IJAREMS

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“…eir results of GMM model indicate that political factors enhance environmental quality while population and income have detrimental effects. Similarly, Ling et al [17] have studied the impact of trade openness on environmental degradation in five Asian countries for the period of 1995 to 2014. ey have found long run association between the variables for their sample countries. ey further confirm the bidirectional causal relationship between carbon emission, energy consumption, and economic growth in short run.…”

Section: Trade Openness and Carbon Emissionmentioning

confidence: 99%

Renewable Energy Consumption, Trade Openness, and Environmental Degradation: A Panel Data Analysis of Developing and Developed Countries

Khan

Weili

Khan

et al. 2021

Mathematical Problems in Engineering

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Studies regarding environmental degradation and its association with different factors have got considerable attention recently in the prevalent literature but with assorted outcomes which have been a guide to the ongoing debate on environmental studies. Energy from renewable sources has been considered beneficial for environmental quality while it is still below the anticipated level especially in developing economies. Openness to trade is important to enhance economic growth while it has been overawed to worsen the quality of environment due to deprived policies especially in developing countries. Subsequently, the present research investigates trade openness, renewable energy consumption, and foreign direct investment in carbon emission in the world developing and developed countries by employing static, dynamic and long run estimators. Trade openness has been found to have a decreasing effect on carbon emission in developed countries while degrading the quality of environment in developing countries while renewable energy consumption enhances environmental quality in both samples. The impact of tourism on carbon emission varies in different samples where FDI increases emission in developed countries while having a negative effect of carbon emission in developing countries. The long run estimators also evidence the existence of long run association among variables. The outcomes of this study have considerable policy implication regarding trade openness policy formulation to upsurge environmental quality especially in developing countries. The study has further suggestions regarding tourism and promoting the use of renewable energy sources by avoiding the use of former’s energy to enhance environmental quality.

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“…The GMM model shows that political factors enhance environmental quality, whereas population and income negatively impact it. The authors of [44] have studied the impact of trade openness on the degradation of the environment in five Asian countries from 1995 to 2014. For their sample countries, they found long-term associations between the variables.…”

Section: Introductionmentioning

confidence: 99%

The Asymmetric and Long-Run Effect of Financial Stability on Environmental Degradation in Norway

et al. 2022

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Risks associated with climate change can have an injurious impact on the economy as well as the financial system as a whole. There is a possibility that certain risks, such as losses to financial intermediaries and disruptions in the functioning of financial markets, can aggravate vulnerabilities in the financial system under certain conditions, including sudden increases in the prices of large asset classes. Using the dataset for Norway between 1995 and 2018, this study investigates how financial stability affects environmental degradation in Norway while controlling openness in trade, ecological clean energy, and economic growth. Findings from the results demonstrate that (i) financial stability causes a reduction in environmental degradation; (ii) growth causes carbon emissions to climb significantly; and (iii) renewable energy has been favorable for emissions in Norway. Lastly, surprisingly, trade openness causes a decline in carbon emissions. The study recommends that since financial stability in Norway reduces environmental degradation by incorporating climate-related risks into the financial stability monitoring framework, it can contribute to lowering carbon emissions to a greater extent. Norway’s policymakers should conduct detailed analyses of the role of global emissions in long-term petroleum policy and the economic viability of selected climate policy scenarios before implementing such a policy. Moreover, policymakers should be updated on the financial system’s vulnerabilities, considering climate-related shocks are likely to affect all financial systems. In addition, policymakers should encourage the use of sustainable energy to raise the availability of reliable, affordable, and sustainable energy to everyone.

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Trade Openness and Environmental Degradation in Asean-5 Countries

Cited by 12 publications

References 22 publications

An Empirical Analysis of the role of Institutional Quality in the Relationship between Foreign Development Assistance and Environmental Degradation in Developing Countries

An Empirical Analysis of the role of Institutional Quality in the Relationship between Foreign Development Assistance and Environmental Degradation in Developing Countries

Renewable Energy Consumption, Trade Openness, and Environmental Degradation: A Panel Data Analysis of Developing and Developed Countries

The Asymmetric and Long-Run Effect of Financial Stability on Environmental Degradation in Norway

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