Economic Growth In ASEAN Countries Research Articles

What is the Short-term and Long-term Relationship between Renewable Energy and Investment in Economic Growth?

The topics of energy, environment, natural resources, and economics have recently remained a topic of conversation. Thus, this study aims to determine the short-term and long-term influence between sustainable energy, CO2, oil rents, and investment on economic growth in ASEAN countries. Based on the purpose of the study, this study used the Vector Error Correction Model (VECM) method with the help of Eviews 10. All variables used in this study were cointegrated in the long term. So that renewable energy consumption helps economic growth in ASEAN countries; in other words, renewable energy consumption positively affects economic growth over time. Meanwhile, environmental damage proxied by CO2 hinders economic growth in the long run. This study also shows that ASEAN countries do not experience the curse of natural resources. This can be seen from the value of oil rents has a significant positive effect on economic growth. Meanwhile, investment in ASEAN has not improved the economy, so collaboration from all parties is needed to realize the welfare of the people projected with increased economic growth.

The Effect of Foreign Direct Investment and Foreign Exchange Reserves on Economic Growth in ASEAN Countries

This study aims to examine the effect of foreign direct investment (FDI) and foreign exchange reserves on economic growth in ASEAN countries during the 1995-2021 period. Estimation results on modeling Autoregressive Distributed Lag (ARDL) show that in the long run foreign exchange reserves have a significant positive relationship with economic growth whereas FDI in the long run has no effect on economic growth. The short-run estimation results show that foreign exchange reserves have no effect on economic growth, while FDI in the short run has a significant positive relationship with economic growth. FDI and foreign exchange reserves need to be increased in ASEAN countries to encourage economic growth.

Corruption Mudhorot for Economic Growth in 7 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 mudhorot of corruption and the influence of global competitiveness 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.

A modified generalized estimating equation approach for simultaneous spatial durbin panel model: Case study of economic growth in ASEAN countries

This article briefly explains the simultaneous spatial durbin panel (SSDP) model. The study of the SSDP model is substantial because it can explain the interaction between geographic units, is more informative, diverse, efficient, exhaustive, and accurate in reaching conclusions that influence the policy determination. This article’s intention is to derive a parameter estimation method from the SSDP model using a modified generalized estimating equation approach, which is then used to model economic growth in ASEAN nations. This article compares the SSDP model with rook contiguity, 2-nearest neighbors, and a customized spatial weighted matrix in relation to an independent, first-order autoregressive, exchangeable working correlation structure. To model economic growth in ASEAN countries, a customized weighted matrix with first-order autoregressive and exchangeable working correlations is chosen based on the CIC value. The parameter analysis outcomes indicate: 1) it is a significant spatial dependence among ASEAN countries; 2) it is a significant simultaneous interaction among the gross domestic product (GDP) and foreign direct investment (FDI); 3) GDP has a greater influence on FDI than FDI does on GDP; 4) The economic growth is directly affected by the labor force total; and 5) trade openness has a direct effect on FDI.

Does China’s CAFTA strategy threaten or promote the development of high-tech industries in ASEAN countries?

ABSTRACTWith the continuous advancement of the CAFTA strategy, the relationship between China and ASEAN countries have gradually strengthened, and the trade exchanges between the two sides have developed rapidly, thereby promoting the economic growth of ASEAN countries in the region. This paper uses differences-in-differences method and HS-6 customs statistical code to study the development of China-ASEAN high-tech industries from 1998 to 2017. It turns out that the establishment of the CAFTA has played a positive role in promoting the development of high-tech industries in ASEAN countries. The specific performance is that China and ASEAN countries have closer trade exchanges, and the trade in computer communication technology and electronic technology has become the fastest developing foreign trade sector. In addition, it is found that low economic level and low education level countries will be affected more significantly by the establishment of CAFTA.

The Impact of Capital Flows from Commercial Banks and FDI on Sustainable Economic Growth in ASEAN Countries

The paper is aimed at assessing the impact of capital flows from commercial banks and FDI on sustainable economic growth in ASEAN countries. The study has conducted quantitative secondary analysis on data collected from 1980 to 2018 for Thailand, Vietnam and Malaysia. Descriptive statistics, correlation and ARDL are applied to measure the impact of each variable on sustainable economic growth. The study has shown a significant long-run relationship of short-term debt, long-term debt, technology, capital flows and savings and investment on sustainable economic growth. Short-term debt is found to have a negative impact in the long run. The short-run relationship between long-term debt, short-term and sustainable economic growth is significant while insignificant for all other variables. The study is useful for countries that are aiming for sustainable economic growth since all the factors are helpful to consider. Future researchers can use other regions to empirically examine the same model. The study is focused on only 3 countries from ASEAN countries and is only focused on one region. As economic and political scenarios different, results might not be same in other parts of the world.

Tourism and Economic Growth: Evidence from ASEAN countries

Tourism has become an important sector in the economy over recent decades, but the impact of tourism on economic growth is still debated. The purpose of this paper is to investigates the long-run relationship between tourism and economic growth in ASEAN countries as well as the causal linkages between them. This study uses panel Autoregressive Distributed Lag (panel ARDL) and data from the World Tourism Organization and the World Development Indicator. The results suggest that tourism has significant and positive impact on economic growth in the long run. Furthermore, the results also indicate that there is bidirectional causality between inbound tourism and economic growth.

Analisis Pertumbuhan Ekonomi Pengguna Internet, Kemiskinan dan Korupsi di Negara ASEAN: Lower Middle Income

This study aims to identify and analyze the response between economic growth, poverty, and corruption in in ASEAN lower middle income countries. Type of this research is descriptive and associative, used a secondary panel data from 2010 to 2017. This research was conducted using the Vector Autoregression (VAR) model through the analysis of Impulse Response Funtion (IRF) and Variance Decomposition (VD) to determine the variability response of a particular variable due to the shock of other variables. The results of this study indicate that: (1) The variability of economic growth is not contributed by the poverty shock in the short term, but in long term the variability of economic growth is contributed by the poverty shock in ASEAN countries:Lower Middle Income. (2) In the short term and long term variability poverty is contributed by the economic growth in ASEAN countries:Lower Middle Income. (3) The variability of poverty is not contibuted by the shock of corruption in the short term, but in the long term the variability of poverty is contributed by the shock of courruption in ASEAN countries:Lower Middle Income. (4) In the short and long term variability curruption is contributed by the shock poverty in ASEAN countries:Lower Middle Income. (5) In the short and long term variability curruption is contributed by the shock economic growth in ASEAN countries:Lower Middle Income. (6) The variability of economic growth is not contributed by the curruption shock in the short term, but in the long term the variability of economic growth is contributed by the curruption shock

Pengaruh Infrastruktur Transportasi dan Urbanisasi Terhadap Pertumbuhan Ekonomi di Negara ASEAN

This research was conducted to see of transportation infrastructure and urbanization on economic growth in ASEAN countries with the chosen model being the Commont Effect Model (CEM). The data used is panel data for the period 2008-2019, which was obtained from the world bank. The variables used are Transportation Infrastructure (X1) and Urbanization (X2). The research method used is: Ordinary Least Square (OLS). The results show that transportation infrastructure has a negative and significant effect on economic growth, while urbanization has a negative and insignificant effect on economic growth in ASEAN countries. Together, transportation infrastructure and urbanization affect economic growth in ASEAN countries.

Economic Growth and Government Expenditure in ASEAN Countries: A Threshold Approach

This study examines the effect of government spending on the economic growth of ASEAN countries between 2000 and 2020, using estimates for panel data. The results show that government spending responds positively to the economic growth of ASEAN countries. Intriguingly, this study finds a threshold level for government spending that reduces economic growth if governments let it exceeds 26.82 percent of GDP. Therefore, this study recommends that ASEAN governments need to pursue targeted and rational spending policies.

The Granger Causality Between Corruption and Economic Growth in ASEAN Countries

This paper studies the Granger causality between corruption and economic growth in ASEAN countries over the period of 1995-2019. Ten ASEAN countries are Brunei Darussalam, Cambodia, Indonesia, Lao People's Democratic Republic, Malaysia, Myanmar, Philippines, Thailand, Vietnam, and Singapore. The corruption is measured by the Corruption Perception Index published annually by Transparency International. The economic growth is measured by a country’s annual gross domestic product growth rate. There is a significant bidirectional Granger causality found between lower level of corruption and higher economic growth in Indonesia. It is shown that higher economic growth Granger causes lower level of corruption in Brunei Darussalam, and lower level of corruption Granger causes higher economic growth in Cambodia. No Granger causality between corruption and economic growth is found in the remaining seven ASEAN countries.

Pengaruh Bantuan Luar Negeri Terhadap Pertumbuhan Ekonomi Negara ASEAN

This study aims to determine the effect of several macroeconomic variables on the economic growth of ASEAN countries. The variables used in this study are foreign aid, foreign direct investment, inflation, and economic growth. This study uses Panel Regression Analysis to see the effect of the independent variables on the dependent variable which can be seen from the annual data from 2009 to 2019 collected through documentation from related agencies and internet websites. The results of this study show that: (1) Foreign Direct Investment has a positive and insignificant effect on the economic growth of ASEAN countries. (2) Inflation has a positive and significant impact on the economic growth of ASEAN countries. (3) Foreign Aid has a negative and insignificant effect on the economic growth of ASEAN countries.

The Impacts of Tax Revenue and Investment on the Economic Growth in Southeast Asian Countries

Research aims: This study focuses on the correlation between tax revenue, investment, and economic growth, taking into account the non-linear effects of tax revenue.Design/Methodology/Approach: Macro data of nine countries in ASEAN (including Brunei, Cambodia, Indonesia, Laos, Malaysia, Philippines, Singapore, Thailand, and Vietnam) in 2000 - 2020 were extracted from the World Bank database. This research employed panel data estimations.Research findings: This study found statistical evidence of a negative effect of tax revenue on economic growth. However, when considering the non-linear effects of tax revenue, the empirical findings showed that higher tax revenue could reduce the disadvantages of tax impacts to boost economic growth. The negative effect of taxes is as obvious as the economic growth theories, but it depends on the taxation revenue. Lower tax revenue may encourage saving and investment, but it also leads to an increased government deficit, reducing economic growth through government debt, spending and investment. Moreover, this study provides consistent evidence of investment’s positive effect on economic growth in ASEAN countries during the research period.Theoretical contribution/Originality: The theoretical contribution provides evidence on the direct effect of tax revenue and investment on economic growth with a broader understanding of the tax’s non-linear effects and investment contributions in the ASEAN. The study confirms the vital role of government activity in regulating the development of the economy through taxation and investment. Practitioner/Policy implication: The severe impact of the COVID-19 pandemic has increased macroeconomic uncertainties, including uncertainty over savings, investment, and spending, potentially leading to tax revenue and investment losses. It, in turn, affects economic activities, so it requires careful consideration. Learned lessons from this study can prepare for future economic shocks and financial crises to reduce negative impacts on economic growth, including their adverse tax revenue effects.Research limitation: This study is limited by looking at the tax revenue ratio overview, which ignores the tax structure due to the lack of data collection. The following studies need to clarify the tax structure of ASEAN countries to determine which tax gives a negative impact/and which tax has a positive effect on economic growth.

Effects of tourism and eco-innovation on environmental quality in selected ASEAN countries.

Environmental issues have gained the attention of regulators and researchers worldwide. This present study empirically examines the validation of the environmental Kuznets curve (EKC) in the selected ASEAN economies for the period 1995–2018 in the presence of eco-innovations and tourism. This study assesses the short-run and long-run relationship between carbon dioxide emission, tourism, eco-innovations, and economic growth in ASEAN countries. To fulfil the objectives of the study, Westerlund and Edgerton (Oxf Bull Econ Stat 70:665-704, 2008) and Banerjee and Carrion‐i‐Silvestre (J Time Ser Anal 38:610-636, 2017) co-integration analysis have been applied to estimate the co-integration among variables because cross-sectional dependence (CSD) and slope heterogeneity was present. The short-run and the long-run empirical estimation have been done through cross-sectional auto distributive lag model. The findings provide evidence that an inverted U-shape nexus exists between carbon (CO2) emissions and economic growth in the ASEAN countries, a validation of EKC. Eco-innovations and tourism are found to be the factors that mitigate CO2 emissions. AMG and CCEMG results also confirm the robustness of short-run and long-run results. The findings of the study suggest that governments in ASEAN countries should promote tourism and eco-innovations (i.e., research and development) to mitigate CO2 emission, which poses serious threats to environmental sustainability. Also, tourism and eco-innovations are the drivers of economic growth, and growth reconciles with environmental sustainability in the selected ASEAN countries. This study provides guidelines to the policymakers while formulating the regulations related to environmental degradation.

Analyzing the Application of Void Decks on High-rise Affordable Housing in Jakarta, Indonesia, to Achieve Optimal Urban Ventilation

Economic growth in ASEAN countries encourages significant urbanized growth. In line with the growth of urbanization, large swathes of residential buildings have been constructed in urban areas, especially, in the case of Indonesia, through the government's 1000 rusun (high-rise affordable housing) development program in Jakarta. In order to reduce energy consumption and create a sustainable rusun, a passive strategy is needed in the form of natural air conditioning through optimized natural ventilation in these buildings. In this study, testing was conducted on Rusun Rorotan in Jakarta, from two wind source directions (north and northwest) with five void decks configuration samples each, in order to determine wind flow and wind speed patterns in the Rusun area. For this purpose, the wind tunnel simulation method using the Butterfly plugin in Grasshopper was employed. These results should provide a reference for future residential property developers, especially in the scope of other countries in ASEAN, which have similar climatic conditions to that of Indonesia.

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 green finance and Covid-19 on economic development: capital formation and educational expenditure of ASEAN economies

PurposeThe purpose of this study is to examine the impact of green finance (i.e. green investment, green security and green credit) along with capital formation and government educational expenditures on the economic development of (ASEAN) countries.Design/methodology/approachThe data were gathered from the central banks of all ASEAN countries and the World Bank Indicators between 2008 and 2019. The fixed-effect model and generalized method of moments were used to check the nexus between the constructs.FindingsThe results revealed that green finance along with capital formation and government educational expenditures have a positive association with the economic development of ASEAN countries.Research limitations/implicationsThe study carries some limitations, even though it addresses the underlying variables comprehensively. These limitations provide opportunities to future researchers and authors to expand the scope and accuracy of their study. This research investigation has been supported by the data collected from a single source. Though data collection is maintained correctly, it is still recommended to the upcoming scholars to acquire data to reconfirm the same findings using multiple data sources. The data collected from using some specific data source may be limited in scope and may hinder the comprehensive elaboration of the underlying variables and their mutual relationship. Therefore, the utilization of multiple sources of data collection gives data sufficient to meet the requirement of an okay quality research study. The study is about the economies of ASEAN countries. It checks the influences of green finance development on economic activities and the country's economic growth in ASEAN countries' economies. Thus, its results are valid only in the economies of these countries, and this research investigation lacks generalizability. For generalizability, the authors must consider the underlying variables in the world's vast economies. They must adopt a standard scale to judge the impacts of green financial development on economic development. Besides, the study analyzes the economic factors, economic conditions and their effects on the country's position in the world economy in the face of a severe epidemic like COVID-19. Thus, the results may be different in the case of the normal situation. So, a general standardized study is recommended to be conducted in the upcoming days.Originality/valueGreen finance has significant capability to improve the global economy, especially amidst the COVID-19 pandemic. This study is beneficial for policymakers to develop policies related to economic development with reference to green finance and also helps future research on a similar topic.

The Effect of Remittance, Consumption, and FDI on Economic Growth in ASEAN Countries

One of the main indicators seen in reviewing the relationship between international workers and economic growth is remittances. Remittances obtained from workers abroad are one of the major sources of finance for developing countries. Remittances are also a source of finance in increasing migrant household incomes which encourage improved consumption which will affect economic growth. This study was conducted to explore the impact of migrant remittances, consumption and FDI on economic growth in 10 ASEAN countries using annual panel data from 2015-2019. This study uses panel data regression analysis with the Random Effect Model (REM) approach. The results showed that remittances, consumption and FDI positively and significantly contributed to economic growth in 10 ASEAN countries. Significant contribution of migrant remittances in economic growth if their use is directed to more productive sectors such as use in the investment sector can help the economies of ASEAN countries to maintain and increase economic growth. The government needs to improve the quality of migrant workers through education because a high level of education will affect the level of wages received by migrants and will have an impact on increasing remittances. The limitation in this study is the use of limited data, for 2020 it is not included in the data set used in the analysis. For this reason, further research should use 2020 data because in 2020 there be a new phenomenon, namely COVID-19 which can be traced to the impact of this phenomenon on remittances. Keywords: Remittances, Migrant, Economic Growth, Panel Data

Does Economic Overheating Provide Positive Feedback on Population Health? Evidence From BRICS and ASEAN Countries.

This paper explores the relationship of real GDP per capita with cancer incidence applying panel threshold regression model in BRICS and ASEAN countries. The empirical results highlight that the business cycle has an inverted-U correlation with population health indicators and a non-linear single threshold effect. In BRICS countries, the health-promoting effect of economic growth is significantly weaker when exceeding the threshold. Similarly, economic growth in ASEAN countries, even worsens population health, after the turning point. These asymmetric effects are strongly related to the response of regional economic globalization health policies. Changes in economic expansion and overheating may have serious adverse effects on health care systems in emerging economies. Governments should adopt more aggressive health care policies during economic overheating, to avoid wasting health care resources.

Economic Growth Determinants of Asean Economic Community: Feasible Generalized Least Square Approach

This study aims to analyze the factors determining economic growth in ASEAN countries, which are the ASEAN economic community members as a potential center for world economic growth. The research method applied in this study was a panel data analysis model with a feasible generalized least square approach. The research period was from 2015 – 2019 in all ASEAN member countries: Indonesia, Myanmar, Malaysia, Singapore, Thailand, Laos, Vietnam, Cambodia, Brunei Darussalam, and the Philippines. Testing the data used the Chow and Hausman tests to determine the analysis method: fixed effect, random effect, or common effect. The results of panel data regression estimation with a feasible generalized least square approach uncovered that the variables of the number of the labor force, currency exchange rates, money supply (M1), exports, imports, Gini index, foreign debt, corruption perception index, financial literacy index, and foreign investment (PMA) significantly affected the economic growth of the ASEAN economic community, including develop agriculture sector. Meanwhile, the variables of domestic investment and financing credit did not affect the economic growth of the ASEAN economic community. The conclusion and recommendation from this study’s results are each ASEAN country’s efforts to encourage economic growth by utilizing its comparative advantages and strategic cooperation to create market opportunities and increase the economic efficiency of the ASEAN economic community.