Economic Growth In Asia Research Articles

British economic strategy and regional institutions in Asia, 2016–2024

AbstractThis paper examines the British approach to Asia and its regional institutions from the Brexit vote in 2016 to the British general election of July 2024. The paper analyses official government statements and debates among political elites about Britain’s foreign policy posture in the region, from the broad ‘Indo-Pacific tilt’ and the Belt and Road Initiative to engagement with specific regional institutions such as ASEAN, BRI, AIIB, CPTPP and bilateral trade and investment agreements. It argues that approaches to regional institutions in and across Asia are driven by a combination of a dominant policy view that there is a need to engage with Asia which is becoming economically and strategically more important in a changing world, alongside a desire to decentre China in British strategic approaches to the region (partly in response to US-China strategic rivalry). However, given China’s centrality to regional economic growth in Asia, this approach creates contradictions which are rarely addressed in British policy debates. This paper will contribute not only to understanding British foreign policy, but also shed light on the evolving “new regionalism” and power dynamics across the Indo/Asia–Pacific, and how actors external to the region view and engage with the development of regional institutions in Asia.

Uncovering Economic Growth Dynamics: The Role of Idiosyncratic Risk

Research Originality: This study provides a new perspective on the dynamics between foreign direct investment (FDI), idiosyncratic risk, and economic growth in ASEAN countries using structural equation modeling (SEM). It contributes to the literature by highlighting the nuanced role of idiosyncratic risk in shaping regional economic outcomes.Research Objectives: The study aims to examine the direct and indirect impacts of FDI inflows, idiosyncratic risk, and sectoral variables (manufacturing, agriculture, and services) on economic growth in ASEAN from 2013 to 2023.Research Methods: The study uses data from the ASEAN Statistical Database and applies SEM to estimate the relationships between these variables.Empirical Result: The main findings indicate that FDI inflows have minimal impact on idiosyncratic risk, as evidenced by regression coefficients below 0.001 for inward and intra-ASEAN FDI. In contrast, idiosyncratic risk significantly impacts economic growth. The results also reveal that sectoral variables such as manufacturing, agriculture, and services exhibit weaker associations with economic growth.Implications: This information suggests that policymakers should focus on exploiting idiosyncratic risk to improve economic development, while acknowledging the limited direct impact of FDI on risk management, thereby debating more appropriate strategies to promote sustainable economic growthJEL Classification: A11, E60, H11

The Impact of Demographic Change on Economic Growth in ASEAN

To study the impact of Demographic Change on Economic Growth in ASEAN. This study uses panel data from 1993 to 2022 from ASEAN countries by collecting data from the World Development Indicator, World Bank 2023, consisting of GDP per capita, working age population, Youth dependency population, and Elderly dependency population. We utilize the statistical completion program as a tool to help with the Panel Autoregressive Distributed Lag Approach (ARDL) method analysis. The results of the study found that variables are stationary at I(0) and I(1) level. Moreover, the estimated coefficients of the variables with the Pooled Mean Group reveals that Working age population had a positive impact in long-run on the GDP per capita in ASEAN countries, Youth dependency population had a negative impact in long-run on the GDP per capita in ASEAN countries, and also had a speed of adjustment to long-run equilibrium and for Elderly dependency population were not statistically significant. The result of Mean Group and Dynamic Fixed Effect further shows that there were not statistically significant. By means of the Hausman test, the results can be concluded that Pooled Mean Group estimation is most suitable.

Balancing environmental sustainability through fintech, green finance natural resource, and economic growth in Asian economies - A Cup-FM and Cup-BC study

Financial technology is now playing a significant part in supporting the advancement of the economy. Moreover, there exists an escalating awareness concerning the safeguarding of resources. The ongoing research illuminates the reliability of the resource curse assumption concerning selected Asian nations. Moreover, it analyses the consequences of two major economic indicators on COE, notably green finance and fintech. The analysis took place over a time frame of 20 years (2000–2020) to attain its goal. The analysis incorporates an extensive approach, Cup-FM and Cup-BC for the empirical perusal. The analysis outcomes illustrate the prevalence of the resource curse hypothesis in selected Asian nations. Fintech has been proven to be an essential tool for minimizing COE. Additionally, green finance acts as an essential tool for minimizing COE. In addition to this, GDP has proven to be a pertinent driver of COE. The analysis provides a variety of particular strategies intended for strengthening the circumstances of observed nations. It is essential to concentrate on the ecologically sound utilization of natural resources at present. Additionally, financial technologies must receive more of the spotlight in the general policymaking field. It is mandatory now for developing nations, to invest in green finances to boost ecological quality.

International trade and economic growth in ASEAN

Purpose – This study aims to analyze the effects of international trade represented by imports and exports in the ASEAN region. Methods – This study uses import, export, labor, and FDI variables on GDP in 8 countries in ASEAN for the period 2000 – 2022 using a panel data regression approach. Findings – The results of this study are that international trade has an impact on economic growth. The results specifically show that the negative effects of imports and positive exports contribute to GDP and labor has a positive effect on GDP. Implication – This study recommends a clear international trade policy between countries, namely by simplifying trade restrictions and conditions between countries. Originality – This study contributes to empirical studies of international trade, especially for cases in ASEAN. Abstrak Tujuan – Penelitian ini bertujuan untuk menganalisis efek dari perdagangan internasional yang direpresentasikan oleh impor dan ekspor di wilayah ASEAN. Metode – Penelitian ini menggunakan variabel impor, ekspor, labor, dan FDI terhadap GDP pada 8 negara di ASEAN untuk periode 2000 – 2022 menggunakan pendekatan regresi data panel. Temuan – Hasil dari penelitian ini adalah bahwa international trade memili dampak terhadap pertumbuhan ekonomi. Hasil secara spesifik menunjukkan bahwa efek negatif impor dan positif ekspor berkontribusi terhadap GDP serta labor berpengaruh positif terhadap GDP. Implikasi – Penelitian ini merekomendasikan adanya kebijakan perdagangan internasional yang jelas antar negara yaitu dengan mempermudah batasan dan syarat perdagangan antar negara. Orisinalitas – Penelitian ini berkontribusi pada kajian empiris perdagangan internasional khususnya untuk kasus di ASEAN.

Determinant factor of environmental quality based on carbon footprint levels in Asia using regression model and Jacobian optimization method

Abstract The rapid economic growth in Asia has resulted in significant carbon emissions, leading to global climate change and environmental degradation. The situation is closely linked to increased industrial activities, population growth, and high energy consumption. Thus, this research is focused on analyzing whether the growth domestic product per capita, foreign direct investment per capita, energy use per capita, and forestland emissions per capita are associated with carbon footprint records in Asia. The attempt is conducted by employing parameter estimation of carbon footprint using a regression model and Jacobian Optimization procedure. The model incorporates data from FAOSTAT, Global Footprint Network, and the World Bank in 2021. The result suggested that if GDP per capita increases by 1,000 units, then the estimated average of carbon footprint per capita will also increase by 0.2, holding other variables remain constant. The finding contributes to formulating effective strategies for carbon footprint reduction and sustainable development in the region. The optimized parameter estimation provides valuable insights into the factors affecting the carbon footprint in Asia.

The Role of Government Expenditure in Shaping ASEAN Economic Growth: A Panel Autoregressive Distributed Lag Approach

This study uses a quantitative technique to investigate the relationship between government spending and economic progress in ASEAN nations. The paper examines yearly secondary data from eleven ASEAN states between 2000 and 2022 using panel data analysis. The panel autoregressive distributed lag (ARDL) technique is employed in the study to identify long-term cointegrating correlations between variables. The findings demonstrate that government expenditure has a significant and positive long-term impact on economic growth, stressing the need of investing in ASEAN-wide economic and social development projects. However, the short-term effects of government spending appear to be minimal, owing to delays in collecting benefits from these expenditures.

Poverty, Unemployment, and HDI Impact on ASEAN Economic Growth: An Islamic Approach

Poverty, Unemployment, and HDI Impact on ASEAN Economic Growth: An Islamic Approach

South Asia's unprotected poor: A systematic review of why social protection programs fail to reach their potential.

The incongruity between South Asia's economic growth and extreme poverty has led to a growing interest in social protection and subsequent implementation of anti-poverty initiatives. However, many programs have consistently fallen short of their full potential in reaching the poor. We reviewed the literature to understand the factors behind this failure. A search of EconLit, Global Health Database, MEDLINE and SocINDEX, supplemented by an external search, yielded 42 papers evaluating 23 programs. Inclusion criteria included social and political determinants of program outcomes. Articles were assessed for quality using the GRADE and GRADE CERQual criteria and analyzed using Thomas & Harding's thematic synthesis approach. We identified five themes: (1) structurally flawed program theories overlook the complexities of poverty and are rooted in simplistic cause-and-effect approaches; (2) elite capture through appropriation of benefits, powerful positioning in program implementation, and gatekeeping through relationships of patronage; (3) insufficient targeting strategies to reach the poorest; (4) neglect of gendered restrictions, hidden costs, lack of legal documentation, and physical and social exclusion; (5) active self-exclusion from social protection to maintain dignity, a perception that programs are substandard, and a lack of resources required. The review highlights the well-documented disconnect between South Asian social protection program designs and the ground realities of their 'ideal' beneficiaries. This stems from a dominance of Western-led poverty discourse that disregards the influence of caste, the challenge of effective engagement with a group whose identity remains unclear, and fast-paced funding calls that do not lend themselves to meaningful identification and collaboration with the invisible poor. We suggest this disconnect is intentional and reflects a broader power dynamic rooted in geopolitical interests and national priorities. Study limitations reflect the shortcomings of the existing literature, which largely uses quantitative research methods that fail to capture the multidimensional experiences of the poor.

Investigating the Effect of Renewable Energy Utilization and Trade Openness Towards the Economic Growth and Environmental Quality in South Asia: A Comparative Study for South Asian Countries

This study aims to investigate the relationship between trade openness and the use of renewable energy sources and South Asia's economic growth and environmental quality. Since renewable energy offers a more sustainable and environmentally friendly option than fossil fuels, it becomes essential to attaining sustainable development. Using renewable energy has grown in popularity as a global solution to the urgent problems of energy security, climate change, and environmental sustainability. Renewable energy must be used by South Asian nations in order to reduce greenhouse gas emissions, maintain long-term energy security, and promote economic resilience. Incorporating renewable energy could enhance the country's energy situation, lessen dependency on imported fossil fuels, and open up new business prospects. Data on the use of renewable energy is gathered for the variable of renewable energy use. Data regarding GDP is gathered for the gross domestic product variable using current US dollars. The Energy Information Administration is the source of the data regarding the use of renewable energy (EIA). Additionally, the World Development Indicators database (WDI) is where the GDP and trade openness data are gathered. The following nations are represented in the data, which was gathered between 2001 and 2020: Bangladesh, India, Nepal, Sri Lanka, and Pakistan. We investigated the long-term relationship between energy consumption, economic growth, and environmental quality in this analysis using the Panel ARDL approach. The dependent variables in the equation above are the environmental quality and economic growth of the Asian developing nations that were chosen for analysis. According to the study's conclusion, TO, GDP, and RNW have long-term negative effects on the environment since they raise CO2. Conversely, RNW reduces CO2, however the effect is negligible compared to other relevant variables. While the results of the CD test show the presence of CSD, the Pedroni Panel Cointegration Test reveals long-run cointegration of a series. The correlation matrix displays the relationship between the variables. The result showed how strongly, negatively, or positively the factors linked with one another. Additionally, there is a substantial positive correlation between GDP and carbon dioxide, its dependent variable. Additionally, RNW are found to be directly related to one another. Both the TO and GDP have a strong and direct correlation, and there is a positive and significant relationship between GDP and RNW. The other cross-sections are connected to this one. They are interdependent and have an impact on one another. Using South Asia as a focus, this study looks at how trade openness and the use of renewable energy affect environmental quality and economic growth in nations including Bangladesh, India, Nepal, Bhutan, and the Maldives.

Fiscal Prudence and Economic Growth in Asia: the role of Efficient Public Spending

The present research is an attempt to study the role of public sector efficiencies in determining optimal fiscal size of the governments for selected Asian countries. Studying efficiency of public spending is important because efficient government spending leads to improved provision of public services like health, education, infrastructure, and welfare initiatives. Improving public sector efficiency will help to promote transparency and accountability which reduces the chances of corruption and wastage of scarce public resources. Using the panel data for 19 developing countries for years 1996-2022, efficiency augmented optimal size of government expenditures is calculated. Pooled Mean Group technique is employed to calculate the impact of efficiency on growth maximizing levels of government total spending, government consumption spending and government investment spending. Results establish strong impact of efficiency in public expenditures on optimal fiscal size. Other variables enhancing economic growth include capital stock and trade openness, while human capital has negative effects. Public sector efficiencies are found to reduce growth maximizing size of government spending. The optimal size of government total expenditure is estimated to be 25.19 %, while optimal fiscal size for government consumption expenditure and government investment expenditure are 14.04%, and 11.18 % respectively for developing Asian countries.

Understanding Idiosyncratic Risk and Economic Growth in ASEAN

This study examines the relationship between idiosyncratic risks, foreign direct investment (FDI), and economic growth in ASEAN countries using data from 2013 to 2022. Idiosyncratic risks refer to specific assets or individual sectors, distinct from systemic or market-wide risk. This study aims to determine whether idiosyncratic risks affect the ASEAN region's FDI flows and economic growth. The study uses structural equation modeling (SEM) analysis to analyze the ASEAN Statistical Database data. Regression weights are used to evaluate the relationship between idiosyncratic risks, FDI, inflation, SDG availability, and economic growth. The results indicate that although there is no significant direct relationship between idiosyncratic risk and FDI inflows, there is a significant positive correlation between idiosyncratic risk and economic growth. These findings have implications for policymakers and investors seeking to promote sustainable economic development in ASEAN countries. Understanding the dynamics of specific risks can inform strategies to attract FDI and stimulate economic growth. This study contributes to the theoretical basis of risk management and economic development in emerging market economies such as those in the ASEAN region.

The Impact of Open Trade on Economic Growth in ASEAN Developing Countries

Trade openness promotes industrialization and has a significant impact on a nation's economic development. Increased economic growth can be a result of foreign investment, and state revenue can rise as a result of significant exports of domestic goods. This study aims to assess how economic trade openness affects the economic development of ASEAN nations. Cross-sectional and time-series analyses were conducted using panel data between 2013 and 2022. The study demonstrates that whereas FDI and positive and major economic growth, exports and positive and large economic growth, and imports and negative and insignificant economic growth, are all associated with significant inflation and negative economic growth. It is anticipated that the nation will raise the standard of goods to promote commerce and economic progress.

The Effect of Energy Security on Economic Growth in ASEAN During 2000–2020

Energy is an important input for economic growth. The increase in non-renewable energy consumption has an impact on energy insecurity. This study aims to calculate energy security and analyze its effect on ASEAN economic growth during the 2000–2020 period. The method used in this study is the Principal Component Analysis to calculate energy security and the Feasible Generalized Least Square panel data regression to analyze its effect on economic growth. The authors use four dimensions to build an energy security index, namely availability, accessibility, acceptability, and efficiency. Several variables are included in the model, are capital, labor, trade, and world oil price. The results of this study indicate that the index and dimensions of energy security have a positive influence on ASEAN economic growth, except for the efficiency dimension. Capital. employment, trade, and oil prices have a positive influence on ASEAN economic growth. Regional Governments need to reduce the gap in the electrification ratio in several countries and build energy infrastructure. The government also needs to increase the application of energy diversification, increase renewable energy production and the need to pay more attention to environmental policies in economic activities.

Does energy transition matter to sustainable development in ASEAN?

The energy transition towards renewable sources represents a pivotal factor in pursuing sustainable development. This study reviews the impact of renewable energy on three aspects of sustainable development, namely economic, social, and environmental aspects in ASEAN. To quantify these aspects, GDP per capita proxies for the economic dimension, unemployment rates for the social dimension, and CO2 emissions for the environmental dimension. The data used is panel data of 10 ASEAN countries from 1996-2020. Pooled Mean Group (PMG) estimation technique is applied to identify the relationship between renewable energy and the dimensions of sustainable development. The study results reveal that renewable energy has a significant influence on sustainable development in the long run. Specifically, renewable energy is able to stimulate GDP per capita levels, thus potentially serving as a determinant of sustainable economic growth in ASEAN. Furthermore, the findings of this study suggest that renewable energy has the capacity to reduce CO2 emissions in the long run. Efforts to increase the share of renewable energy usage are needed to mitigate the risk of environmental degradation. However, it is noteworthy that our study underscores the adverse impact of the energy transition on the social dimension, as it can potentially drive-up unemployment rates in the long run. This impact can be attributed to labor market relocations and structural changes. Novice workers in the renewable energy sector may face the risk of displacement. Consequently, this study has implications that underscore the need for inclusive approaches to elevate the usage of renewable energy. Furthermore, a well-structured policy framework is needed to encourage more investments and prepare the competent workforce in the renewable energy sector.

The Impact of Digitalization on Economic Growth in ASEAN

Purpose – The study aims to confirm a positive relationship between digitalization and economic growth in ASEAN. It seeks to provide insights into the challenges and future directions for ASEAN’s economic growth by examining the impact of digitalization through broadband penetration. Design/Methodology/Approach – This study employs regression analysis using a fixed-effect model with data sourced from World Development Indicators (WDI) and the United Nations Development Programme (UNDP), covering the period from 2008 to 2020. Its primary objectives are to offer a comprehensive understanding of the relationship between digital technologies and the economic development of ASEAN, and to identify factors contributing to economic growth in the region. The focus is on Southeast Asian countries, namely Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam Findings – The findings yield compelling evidence in support of the hypothesis, emphasizing the pivotal role of expanding broadband infrastructure in fostering economic growth across ASEAN countries. Furthermore, the study underscores the importance of enhancing broadband infrastructure and highlights the potential impact on the economic development of developing nations. It emphasizes the crucial role played by fixed-broadband, mobile-broadband, and fixedtelephone subscriptions in contributing to the economic growth of ASEAN countries. Research Implications – This study proves a significant positive relationship between digitalization and economic growth in the region. It offers a preliminary understanding of the impact of digitalization on economic growth in ASEAN, laying the groundwork for future research.

Climate change, governance, and economic growth in Asia: a panel cointegration analysis

Climate change, governance, and economic growth in Asia: a panel cointegration analysis

Do Globalization and Gender Equality Accelerate Economic Growth in Asian Countries?

In recent decades, Asian economies have become more integrated and interdependent in terms of economic, social, and political dimensions. This has ushered in the era of globalization. Arguably, globalization, by narrowing down the global gender gap between Asian countries, has positively contributed to their economic growth. In this background, this study examined the impact of globalization and gender equality on economic growth in 15 selected Asian economies. The outcomes indicate that the gender factors in health, education, and employment dimensions positively affect the economic growth in Asia in the long run. Furthermore, globalization has been found to have a positive impact on economic growth in Asian countries in the long run. Therefore, globalization and gender equality can be considered as the significant determinants of economic growth in Asia. The implication is that the policy focus should be to ensure the deepening of globalization and augmenting gender equality to achieve higher levels of economic growth in Asia.

Financial Inclusion and Economic Growth: Comparative Panel Evidence from Developed and Developing Asian Countries

We investigate the empirical nexus between financial inclusion and economic growth for an extended sample of 21 Asian countries spanning over a period from 2004 to 2019. Further, we also conducted a sub-sample analysis by dividing the overall samples into developed and developing countries. Our results reveal a significant positive long-term impact of financial inclusion on economic growth in Asia. Our pair-wise causality test shows bidirectional causality between financial inclusion and economic development. Our robust results are consistent across various estimation techniques. Our findings suggest that the influence of financial inclusion on economic growth is more pronounced in developing countries compared to developed countries. Our results hold across subsamples. These findings posit important policy insights to enable the policy-makers in designing policies that ensure efficient and inclusive financial system on an equitable basis to achieve sustainable economic growth. JEL classification: O16; O57; C38; C33

Pollution Emissions and Economic Growth in Asia through the Lens of the Environmental Kuznets Curve

Pollution Emissions and Economic Growth in Asia through the Lens of the Environmental Kuznets Curve