Role of regional trade agreements in enhancing investments in mineral resources projects in ASEAN

Abstract

In this research, the effects of the regional trade agreement on sustainable investment in mineral resources in 10 Association of Southeast Asian Nations (ASEAN) members are investigated using econometric analysis of annual data from 1990 to 2021. The empirical estimations confirmed that the gross domestic product has an adverse effect in the short term. In addition, a 1% increase in the development of capital markets will increase green investments in mineral resources by 0.23% and 0.34% in the long and short term, respectively. Geographical distance as a proxy for transportation and insurance costs has an adverse short-term and long-term effect on the amount of green investment in mineral resources. Furthermore, the ASEAN trade-in goods agreement (ATIGA) and ASEAN investment facilitation framework are essential and significant factors in improving sustainable investment in mineral resources in ASEAN member countries.