Economic Growth In ASEAN Countries Research Articles

Determinan Pertumbuhan Ekonomi Negara Asean-10: Model Data Panel

This study aims to analyze the effect of investment, exchange rate, labor, and human development index (HDI) variables on economic growth in ASEAN countries. This study uses panel data regression analysis with time series data from 2011-2022 and cross-section data from 10 ASEAN countries. The results showed that the Fixed Effect Model was selected as the best model in the study. The results of the analysis concluded that investment and labor have a positive and significant effect on economic growth and HDI has a negative and significant effect on economic growth. Meanwhile, the exchange rate does not have a significant effect on economic growth. In other words, increasing investment and labor will increase economic growth, conversely if the HDI increases it will not increase economic growth. In addition, the exchange rate has no effect on economic growth in 10 ASEAN countries.

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

Relationship Corruption and Economic Growth ASEAN Countries

Corruption is a detrimental act for many people, especially related to the economy. Various groups widely discuss corruption and economic growth from academia, government, and the private sector. This is even more complex when coupled with competitiveness between countries and democratic systems. So this study aims to analyze the influence of global competitiveness, corruption and democracy on economic growth in ASEAN countries. This study used panel data analysis methods in 7 ASEAN countries from 2014-2019. The seven countries are Indonesia, Malaysia, Thailand, the Philippines, Vietnam, Laos, and Cambodia. It is related to economic growth, corruption, and competitiveness in ASEAN countries. The results of this study show that corruption brings mudhorot but has yet to be significant to economic growth. Another interesting finding is that democracy negatively affects global competitiveness and increases economic growth. This research can be one of the government's policy recommendations by increasing economic growth through strict enforcement against corruption and increasing global competitiveness. To realize economic growth that prospers society requires the role of the government through increasing human and institutional resources to support other competitiveness factors that focus on technological, environmental, and innovation aspects

The Relationship between Global Competitiveness, Corruption, Democratic Systems on Economic Growth ASEAN countries

Corruption is a detrimental act for many people, especially related to the economy. Various groups widely discuss corruption and economic growth from academia, government, and the private sector. This is even more complex when coupled with competitiveness between countries and democratic systems. So this study aims to analyze the influence of global competitiveness, corruption and democracy on economic growth in ASEAN countries. This study used panel data analysis methods in 7 ASEAN countries from 2014-2019. The seven countries are Indonesia, Malaysia, Thailand, the Philippines, Vietnam, Laos, and Cambodia. It is related to economic growth, corruption, and competitiveness in ASEAN countries. The results of this study show that corruption brings mudhorot but has yet to be significant to economic growth. Another interesting finding is that democracy negatively affects global competitiveness and increases economic growth. This research can be one of the government’s policy recommendations by increasing economic growth through strict enforcement against corruption and increasing global competitiveness. To realize economic growth that prospers society requires the role of the government through increasing human and institutional resources to support other competitiveness factors that focus on technological, environmental, and innovation aspects.

Assessing the synergistic effect of “pollution and carbon reduction” and “economic growth”: a perspective from bilateral trade between China and RCEP countries

IntroductionWith the accelerating process of globalization, trade activities have had profound impacts on both the environment and economic development.MethodsThis paper comprehensively evaluates the synergistic effect of bilateral trade on “pollution reduction” and “carbon mitigation,” as well as “economic growth,” utilizing panel data from China and RCEP countries spanning the period from 1997 to 2020.ResultsThe empirical results reveal that bilateral trade significantly propels economic growth in RCEP countries and exhibits a positive “pollution reduction” effect, whereas its “carbon reduction” effect remains uncertain. To delve into the underlying reasons for bilateral trade’s failure to effectively mitigate carbon emissions, this paper undertakes a mechanism test along two opposing paths. Notably, the influence of bilateral trade on economic growth and “pollution reduction” in RCEP countries varies regionally. Specifically, bilateral trade is more efficacious in fostering economic growth in ASEAN countries. Additionally, bilateral trade enhances environmental quality in ASEAN countries, yet it deteriorates in non-ASEAN countries. Furthermore, this paper examines the intricate relationship between bilateral trade, economic growth, and “pollution reduction” through the application of the PVAR model. It concludes that optimizing environmental quality in RCEP countries is conducive to both local economic growth and bilateral trade.ConclusionThis study not only bears significant implications for understanding the complex interplay between economic growth, environmental quality, trade liberalization, and environmental policies, but also provides invaluable guidance for policy formulation and implementation aimed at achieving green transformation and fostering sustainable economic development.

RELATIONSHIP BETWEEN LOGISTICS SECTOR AND ECONOMIC GROWTH IN ASEAN COUNTRIES

In the modern economics, any manufacturing companies have increasingly relied on professional logistics firms, leading to rapid growth in the logistics sector as a service industry and its significant contribution to economic development. With increasing globalization and competition, countries have focused on enhancing their logistics systems to ensure stable economic growth and strengthen global trade competitiveness. In the ASEAN region, logistics plays a critical role, facilitating cross-border trade and regional connectivity. This study aims to investigate the relationship between the logistics sector, specifically air freight transportation, and economic growth in ASEAN countries, given the sector's central role in supporting supply chain management and trade activities. The primary objective of this study is to determine whether there is a causal relationship between air freight transportation (AFT), a key logistics activity, and gross domestic product (GDP) growth in six ASEAN countries. The study seeks to provide insights into how investment in logistics infrastructure, particularly in air freight, may influence economic growth in the region. The study uses panel data for six ASEAN countries from 1996 to 2021. Data on GDP growth and air freight transportation were sourced from the World Bank’s World Development Indicators database. A series of statistical tests, including the Cross-Sectional Augmented Dickey Fuller (CADF) test, Pesaran’s slope homogeneity test, and the Bootstrap Granger causality test, were performed to examine cross-sectional dependence and the causal relationship between GDP growth and air freight transportation. Descriptive statistics revealed significant disparities in air freight transportation capacity among the countries studied, with Indonesia and Thailand showing substantial air freight volumes compared to the Philippines. However, the results of the panel causality tests, including the Dumitrescu and Hurlin panel causality test, indicate that no causal relationship exists between air freight transportation and GDP growth in the six ASEAN countries.

Tax Revenue and Human Development Index in the Seven ASEAN Countries

This research is motivated by curiosity about tax revenues and human development indices in 7 (seven) ASEAN countries that are influenced by tax revenues. The aim of this study is to show the impact of taxes on the Human Development Index in 7 ASEAN countries. Examples of this study include Indonesia, Malaysia, the Philippines and Thailand, Myanmar, Cambodia, and Vietnam. The second data used in this study covers the period from 2010 to 2023. The regression of the panel data was used in the processing of the study data. At the same time, this study significantly illustrates the influence of independent variables on related variables. Variable inflation had a significant negative impact on tax revenues, while variable market capitalization and tourist visits had a positive and significant correlation with tax revenues. Tax revenues also have a positive impact on the economic growth of ASEAN countries (Indonesia, Malaysia, the Philippines, Thailand, Myanmar, Cambodia and Vietnam).

Abundance of Natural Resources: Influence on Economic Growth in ASEAN Countries

ASEAN's GDP growth reached 3 trillion USD, with intra-ASEAN trade reaching 590.4 billion USD. ASEAN is projected to become the world's fourth-largest economy by 2050, and over the past few years has shown rapid economic growth. This study aims to analyze the waste of resources that affect the economic growth of ASEAN countries sourced from the export value of natural resources of fuel, natural resources of ore and minerals, natural resources of agriculture, and natural resources of food. Using a quantitative descriptive research approach, using secondary data in the form of panel data for the period 2001-2020 obtained from 10 countries in ASEAN. Data analysis technique using panel data regression, selected model random effect model using Eviews 12 software. The results of this study show that the abundance of natural resources of ores and minerals has a significant effect on economic growth in ASEAN countries with a positive relationship direction, while agricultural natural resource variables have a significant influence on economic growth with a negative relationship direction. This is due to dependence on agricultural natural resources, market instability, technological and infrastructure limitations, climate change vulnerability, and political instability, thus causing loss of added value, dependence on export markets and development on the agricultural industry, which causes obstacles to economic growth which ultimately hinders economic growth to develop optimally.

Exploring the pathways accounting: Foreign direct investment as a catalyst for idiosyncratic risk, sectoral GDP, economic activity, and economic growth

This study examines the interaction between foreign direct investment (FDI), idiosyncratic risk, sectoral GDP, economic activity, and economic growth in ASEAN countries using structural equation modeling (SEM) performed using AMOS software. The analysis uses data from the ASEAN Statistics Database 2023 to distinguish the significant direct and indirect impacts of FDI on idiosyncratic risks, sectoral GDP, economic activity and aggregate economic growth can. ASEAN, which includes ten Southeast Asian countries, has experienced rapid economic growth and increasing integration in recent decades, making it an interesting area to study these relationships. The study covers a comprehensive period to capture trends and differences among ASEAN member states. Applying SEM with AMOS allows a detailed examination of complex relationships between important economic variables. The results show a clear link between FDI inflows, idiosyncratic risks, industry GDP performance, economic activity, and overall economic growth. More specifically, FDI inflows have a notable direct influence on idiosyncratic risks, which then impact GDP growth by sector, and the level of economic activity and ultimately contribute to economic growth trends. economy more broadly in ASEAN countries. These findings highlight the importance of understanding and effectively managing the dynamics between FDI and various economic indicators to promote sustainable economic development across ASEAN. This information can inform policymakers, investors, and stakeholders in developing targeted strategies and policies that maximize the benefits of FDI while minimizing related risks to promote strong and inclusive economic growth in the region. This study highlights the multifaceted relationships in the ASEAN economic context, emphasizing the need for strategic interventions and policy frameworks to exploit the potential of foreign investment directed at ASEAN, to the Sustainable Development Goals and long-term economic prosperity in the region.

Impact of Covid-19 on the Economic Growth of ASEAN Countries: Convergence or Divergence?

This contribution addresses the question of whether economic growth among ASEAN member countries is converging or diverging within the context of the COVID-19 pandemic. ASEAN has significantly developed economic and social mechanisms aimed at achieving greater integration among member countries, with the goal of enhancing economic growth and especially accelerating the catch-up of the poorer member countries. How resilient have the member countries been? Has the COVID-19 pandemic more severely affected the poorer member countries? To answer these questions, our contribution addresses this issue based on economic growth theories, particularly drawing on Solow’s theory regarding beta and gamma convergence. The study covers the period from 2000 to 2022. In the pre-pandemic period from 2000 to 2019, there is a general phenomenon of absolute convergence, demonstrating a reduction in the disparity in absolute values between less advanced and more modern countries, which also leads to a reduction in inequality as shown by the confirmation of the σ-convergence hypothesis. This is true for both GDPC and GDPW variables. The catch-up effect of absolute β-convergence is not evident when looking at the period from 2020 to 2022. During this timeframe, both the absolute β-convergence and σ-convergence hypotheses are rejected, which slows down the economic growth of poorer economies relative to the more advanced ASEAN countries. Overall, the entire 2000–2022 period confirms the unconditional β-convergence and σ-convergence assumptions of the pre-pandemic period.

The Effect of Foreign Direct Investment and Inflation on The Economic Growth of ASEAN Countries 2009-2020

This study aims to analyze the effect of foreign direct investment and inflation on economic growth in ASEAN countries. The analytical method used is a quantitative approach with multiple linear regression panel data method based on secondary data from foreign direct investment, inflation, and economic growth variables in 2009-2020. The analysis results show that FDI has no significant impact on the economic growth variable, and the inflation rate has a significant positive impact on the economic growth variable.

Pengaruh Perdagangan Internasional Ekspor Dan Impor Terhadap Pertumbuhan Ekonomi Di Negara ASEAN

This research aims to analyze the influence of international trade, exports and imports on economic growth in ASEAN countries. This research was conducted using international trade and economic growth data from ASEAN countries in the 2013-2022 period. The method used in this research is regression analysis to measure the relationship between export, import and economic growth variables. The data used is secondary data obtained from trusted sources such as reports from the Central Statistics Agency and Word Bank. The research results show that international export trade has a significant positive influence on economic growth in ASEAN countries. This shows that increasing exports can contribute to increasing economic growth in ASEAN countries. On the other hand, international import trade also has a significant positive influence on economic growth in ASEAN countries

THE EFFECT OF INFRASTRUCTURE DEVELOPMENT ON ECONOMIC GROWTH IN ASEAN COUNTRIES: DYNAMIC PANEL DATA ANALYSIS

This article examines the impact of infrastructure development on economic growth in ASEAN countries using dynamic panel data analysis. The research is motivated by the significant economic transformation in the Southeast Asian region, largely driven by infrastructure development, which has improved connectivity, efficiency, productivity, job creation, and sustainable growth. The analysis considers various sectors including transportation, energy, and communication, and incorporates factors such as education, health, and access to infrastructure. Using the Generalized Method of Moments (GMM) and data from the World Bank from 2002 to 2022, this study investigates the extent to which infrastructure investment contributes to economic growth. The results show a positive and significant relationship between infrastructure development and economic growth, emphasizing the need for policymakers to prioritize infrastructure investment along with institutional reforms to achieve sustainable and inclusive growth. The findings underscore the critical role of infrastructure in improving economic performance and the importance of quality institutions in maximizing the benefits of infrastructure capital in ASEAN 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.

Thriving or Declining? Unraveling Corruption, Environmental Quality, Energy Consumption, and Economic Growth in ASEAN Countries

The current study is carried out to explore the link between Corruption,Environment quality. Energy consumption and economic growth in selectedAsean countries. In addition to that, the present study aims to highlight thedirect impacts of corruption upon environmental degradation, energyconsumption, and economic progress. For this purpose, the analyticalframework has been particularly used. Theoretically, environmental quality isexpected to be directly influenced by corruption using taxation andregulations, while corruption affects economic growth which in turn affectsthe quality of environment. Therefore, economic growth is negativelyinfluenced by the levels of corruptions. The higher the levels of corruption thelower will be the GDP level of an economy. This lower GDP level theninfluences the environmental quality, and thus confirms the EKC hypothesis.This paper has employed cointegration model for analyzing the associationbetween environmental quality, energy consumption, corruption, andeconomic growth for the data involving 5 ASEAN countries i.e. Malaysia,Thailand, Singapore, Philippines, and Indonesia for the years 1960-2021. Theliterature review has shown no empirical study that have employedcointegration model for examining the effects of corruption on energyconsumption, environmental quality, and economic growth. The findings ofthe study are in line with the proposed hypothesis. The study which is amongthe pioneering studies will be helpful for policymakers and researchers.

Research on the Financial Cooperation and Economic Growth—Evidence from China and ASEAN

China has actively carried out financial cooperation with countries along the route, utilizing the new framework of financial cooperation to inject new momentum into economic growth. This paper measures the development level of China-ASEAN financial cooperation with the help of the China-ASEAN Financial Cooperation Index from 2000 to 2022, and empirically examines the impact of China-ASEAN financial cooperation on the economic growth of ASEAN countries through the fixed effect model. The study shows that China-ASEAN financial cooperation significantly contributes to the economic growth of ASEAN countries by advancing financial development, improving the degree of financial stability, and expanding financial openness. Heterogeneity analysis found that the promoting effect of China-ASEAN financial cooperation on economic growth is more pronounced in countries with high institutional quality and high economic development level.

Thriving or Declining? Unraveling Corruption, Environmental Quality, Energy Consumption, and Economic Growth in ASEAN Countries

The current study is carried out to explore the link between Corruption, Environment quality. Energy consumption and economic growth in selected Asean countries. In addition to that, the present study aims to highlight the direct impacts of corruption upon environmental degradation, energy consumption, and economic progress. For this purpose, the analytical framework has been particularly used. Theoretically, environmental quality is expected to be directly influenced by corruption using taxation and regulations, while corruption affects economic growth which in turn affects the quality of environment. Therefore, economic growth is negatively influenced by the levels of corruptions. The higher the levels of corruption the lower will be the GDP level of an economy. This lower GDP level then influences the environmental quality, and thus confirms the EKC hypothesis. This paper has employed cointegration model for analyzing the association between environmental quality, energy consumption, corruption, and economic growth for the data involving 5 ASEAN countries i.e. Malaysia, Thailand, Singapore, Philippines, and Indonesia for the years 1960-2021. The literature review has shown no empirical study that have employed cointegration model for examining the effects of corruption on energy consumption, environmental quality, and economic growth. The findings of the study are in line with the proposed hypothesis. The study which is among the pioneering studies will be helpful for policymakers and researchers.

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.

Foreign Direct Investment, Financial Development, and Economic Growth in ASEAN Countries

blished: Feb 28, 2024 Abstract Foreign direct investment can be a solution to overcome domestic capital limitations. The spillover effect from FDI does not necessarily exist but needs to be created. Advanced domestic financial development will encourage the positive influence of FDI on economic growth. This research analyzes the relationship between foreign direct investment, financial development, and economic growth in ASEAN countries from 1999 to 2019. Additionally, it also aims to analyze the effect of inflation, exchange rates, and human capital on economic growth. The research method uses panel data analysis using Fixed Effect Model (FEM). The research results show that foreign direct investment, exchange rates, and human capital have a positive and significant effect on economic growth. Inflation has a negative and significant effect on economic growth. Financial development strengthens the effect of foreign direct investment on economic growth. Thus, domestic financial development needs to be improved in order to maximize greater benefits from the presence of FDI.

Analisis Dampak Perdagangan Bebas ASEAN Terhadap Pertumbuhan Ekonomi Regional Tahun 2017-2021

The country certainly cannot be separated from the name of international trade. ASEAN, which is an organization of countries in Southeast Asia, is interdependent with each other. Cooperation between ASEAN countries covers various fields such as economics, politics, socio-culture, security and education. However, the main motive for this interdependence is motivated by economic and political factors. This interaction can be created well because it is influenced by the national interests of each country. Economic growth is also one of the goals that every country always wants to achieve. There are several indicators of the theoretical framework in the economic growth of ASEAN countries, including Foreign Direct Investment, results of exports and imports or international trade, as well as the country's per capita income (GDP per capita). A single direct investment or capital investment from one country to another can also make a major contribution to a country's development, through the transfer of assets, technology and managerial skills to increase the country's economic growth. Meanwhile, imports and exports can increase state income and the state's financial circulation can circulate well. Gross Domestic Product (GDP) is also an important indicator as proof of whether a country is progressing or not. Therefore, this research functions to analyze the impact or influence of free or international trade and economic growth in the ASEAN region in 2017-2021. The data used in this research is secondary data, obtained from the results of literature studies, journals, books and official sites or websites. The method used in this research is the multiple regression analysis method (OLS). Based on the known methods used, supported by the data obtained, it can be seen that international trade factors have a major impact on regional economic growth in the ASEAN region.