Dynamic Impact of Macroeconomic Variables on the Ecological Footprint in Malaysia: Testing EKC and PHH*
The objective of this paper is to investigate the impact of economic growth (per capita real GDP), the square of per capita real GDP, energy use, financial development (FD), and foreign direct investment (FDI) on ecological footprint (EF) in the case of Malaysia over the period 1971–2014, by emplo...
Saved in:
Main Authors: | , , , |
---|---|
Format: | Article |
Language: | English |
Published: |
Korea Distribution Science Association (KODISA)
2021
|
Subjects: | |
Online Access: | http://irep.iium.edu.my/92450/1/92450_Dynamic%20Impact%20of%20Macroeconomic%20Variables.pdf http://irep.iium.edu.my/92450/ https://www.koreascience.or.kr/article/JAKO202112748675101.page https://doi.org/10.13106/jafeb.2021.vol8.no5.0583 |
Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
id |
my.iium.irep.92450 |
---|---|
record_format |
dspace |
spelling |
my.iium.irep.924502021-09-23T03:07:16Z http://irep.iium.edu.my/92450/ Dynamic Impact of Macroeconomic Variables on the Ecological Footprint in Malaysia: Testing EKC and PHH* Mehraaein, Mahmood Afroz, Rafia Rahman, Mehe Zebunnesa Muhibbullah, Md H Social Sciences (General) The objective of this paper is to investigate the impact of economic growth (per capita real GDP), the square of per capita real GDP, energy use, financial development (FD), and foreign direct investment (FDI) on ecological footprint (EF) in the case of Malaysia over the period 1971–2014, by employing the ARDL approach. The long-run results revealed that economic growth has a significant positive impact on the ecological footprint and it implies that the economic growth deteriorates the environmental quality in Malaysia. Conversely, the square of GDP showed a negative and significant impact on the EF in the long run. As the coefficient of GDP in our study is positive and statistically significant while the coefficient of squared GDP is negatively significant, thus, this study supports the presence of the environmental Kuznets curve (EKC) hypothesis in the case of Malaysia. Furthermore, the result indicates that FDI has a positive and significant impact on the EF in the long run, which means a rise in FDI will enhance the environmental pollution level. Thus, it confirms the pollution haven hypothesis. Hence, it suggests that Malaysia imposes stricter environmental policies. Further, FDI and FD are causing GDP in Malaysia, but through increasing EF. Korea Distribution Science Association (KODISA) 2021-05-30 Article PeerReviewed application/pdf en http://irep.iium.edu.my/92450/1/92450_Dynamic%20Impact%20of%20Macroeconomic%20Variables.pdf Mehraaein, Mahmood and Afroz, Rafia and Rahman, Mehe Zebunnesa and Muhibbullah, Md (2021) Dynamic Impact of Macroeconomic Variables on the Ecological Footprint in Malaysia: Testing EKC and PHH*. Journal of Asian Finance, Economics and Business, 8 (5). pp. 583-593. ISSN 2288-4637 E-ISSN 2288-4645 https://www.koreascience.or.kr/article/JAKO202112748675101.page https://doi.org/10.13106/jafeb.2021.vol8.no5.0583 |
institution |
Universiti Islam Antarabangsa Malaysia |
building |
IIUM Library |
collection |
Institutional Repository |
continent |
Asia |
country |
Malaysia |
content_provider |
International Islamic University Malaysia |
content_source |
IIUM Repository (IREP) |
url_provider |
http://irep.iium.edu.my/ |
language |
English |
topic |
H Social Sciences (General) |
spellingShingle |
H Social Sciences (General) Mehraaein, Mahmood Afroz, Rafia Rahman, Mehe Zebunnesa Muhibbullah, Md Dynamic Impact of Macroeconomic Variables on the Ecological Footprint in Malaysia: Testing EKC and PHH* |
description |
The objective of this paper is to investigate the impact of economic growth (per capita real GDP), the square of per capita real GDP, energy
use, financial development (FD), and foreign direct investment (FDI) on ecological footprint (EF) in the case of Malaysia over the period
1971–2014, by employing the ARDL approach. The long-run results revealed that economic growth has a significant positive impact on the
ecological footprint and it implies that the economic growth deteriorates the environmental quality in Malaysia. Conversely, the square of GDP
showed a negative and significant impact on the EF in the long run. As the coefficient of GDP in our study is positive and statistically significant
while the coefficient of squared GDP is negatively significant, thus, this study supports the presence of the environmental Kuznets curve (EKC)
hypothesis in the case of Malaysia. Furthermore, the result indicates that FDI has a positive and significant impact on the EF in the long run,
which means a rise in FDI will enhance the environmental pollution level. Thus, it confirms the pollution haven hypothesis. Hence, it suggests
that Malaysia imposes stricter environmental policies. Further, FDI and FD are causing GDP in Malaysia, but through increasing EF. |
format |
Article |
author |
Mehraaein, Mahmood Afroz, Rafia Rahman, Mehe Zebunnesa Muhibbullah, Md |
author_facet |
Mehraaein, Mahmood Afroz, Rafia Rahman, Mehe Zebunnesa Muhibbullah, Md |
author_sort |
Mehraaein, Mahmood |
title |
Dynamic Impact of Macroeconomic Variables on the Ecological
Footprint in Malaysia: Testing EKC and PHH* |
title_short |
Dynamic Impact of Macroeconomic Variables on the Ecological
Footprint in Malaysia: Testing EKC and PHH* |
title_full |
Dynamic Impact of Macroeconomic Variables on the Ecological
Footprint in Malaysia: Testing EKC and PHH* |
title_fullStr |
Dynamic Impact of Macroeconomic Variables on the Ecological
Footprint in Malaysia: Testing EKC and PHH* |
title_full_unstemmed |
Dynamic Impact of Macroeconomic Variables on the Ecological
Footprint in Malaysia: Testing EKC and PHH* |
title_sort |
dynamic impact of macroeconomic variables on the ecological
footprint in malaysia: testing ekc and phh* |
publisher |
Korea Distribution Science Association (KODISA) |
publishDate |
2021 |
url |
http://irep.iium.edu.my/92450/1/92450_Dynamic%20Impact%20of%20Macroeconomic%20Variables.pdf http://irep.iium.edu.my/92450/ https://www.koreascience.or.kr/article/JAKO202112748675101.page https://doi.org/10.13106/jafeb.2021.vol8.no5.0583 |
_version_ |
1712284868416634880 |
score |
13.18916 |