The Nexus Between Financial Development And Environmental Degradation In Asean-5
This study investigates the relationship between financial development and environmental degradation in ASEAN-5 countries namely Indonesia, Malaysia, Philippines, Singapore, and Thailand over the period of 2000 to 2012. The Panel Unit Root test, Panel Cointegration test, Vector Error Correction Mode...
| Main Authors: | , , |
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| Format: | Proceeding |
| Language: | English |
| Published: |
2016
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| Subjects: | |
| Online Access: | http://ir.unimas.my/id/eprint/17910/ http://ir.unimas.my/id/eprint/17910/1/THE%20NEXUS.pdf |
| _version_ | 1848838394521583616 |
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| author | Rossazana, Ab. Rahim Muhd Asraf, Abdullah Sang, Sook Fah |
| author_facet | Rossazana, Ab. Rahim Muhd Asraf, Abdullah Sang, Sook Fah |
| author_sort | Rossazana, Ab. Rahim |
| building | UNIMAS Institutional Repository |
| collection | Online Access |
| description | This study investigates the relationship between financial development and environmental degradation in ASEAN-5 countries namely Indonesia, Malaysia, Philippines, Singapore, and Thailand over the period of 2000 to 2012. The Panel Unit Root test, Panel Cointegration test, Vector Error Correction Model (VECM) Granger Causality, and Fully Modified Ordinary Least Square (FMOLS) are used in this study to examine the short-run and the long-run as well as the causality relationship among the variables. Variables employed in this study are carbon dioxide emissions, foreign direct investment, domestic credit, and market capitalization. The empirical findings show that all the variables are stationary at order 1(I) and there is a cointegration relationship among the variables. The results show that there is a bidirectional causality relationship between the LCO, and FDL Meanwhile, there is a unidirectional causality running from LCO, to DC, MC to FDI, and MC to DC respectively. The strong policy and
institution structures are suggested to improve environmental degradation through new technologies and
financial development and financial reforms play a role in protecting the environment. |
| first_indexed | 2025-11-15T06:54:51Z |
| format | Proceeding |
| id | unimas-17910 |
| institution | Universiti Malaysia Sarawak |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T06:54:51Z |
| publishDate | 2016 |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | unimas-179102022-01-04T00:37:53Z http://ir.unimas.my/id/eprint/17910/ The Nexus Between Financial Development And Environmental Degradation In Asean-5 Rossazana, Ab. Rahim Muhd Asraf, Abdullah Sang, Sook Fah H Social Sciences (General) HG Finance This study investigates the relationship between financial development and environmental degradation in ASEAN-5 countries namely Indonesia, Malaysia, Philippines, Singapore, and Thailand over the period of 2000 to 2012. The Panel Unit Root test, Panel Cointegration test, Vector Error Correction Model (VECM) Granger Causality, and Fully Modified Ordinary Least Square (FMOLS) are used in this study to examine the short-run and the long-run as well as the causality relationship among the variables. Variables employed in this study are carbon dioxide emissions, foreign direct investment, domestic credit, and market capitalization. The empirical findings show that all the variables are stationary at order 1(I) and there is a cointegration relationship among the variables. The results show that there is a bidirectional causality relationship between the LCO, and FDL Meanwhile, there is a unidirectional causality running from LCO, to DC, MC to FDI, and MC to DC respectively. The strong policy and institution structures are suggested to improve environmental degradation through new technologies and financial development and financial reforms play a role in protecting the environment. 2016 Proceeding PeerReviewed text en http://ir.unimas.my/id/eprint/17910/1/THE%20NEXUS.pdf Rossazana, Ab. Rahim and Muhd Asraf, Abdullah and Sang, Sook Fah (2016) The Nexus Between Financial Development And Environmental Degradation In Asean-5. In: 7th International Borneo Business Conference, 7-8 September 2016, Universiti Malaysia Sabah, Sabah, Malaysia. |
| spellingShingle | H Social Sciences (General) HG Finance Rossazana, Ab. Rahim Muhd Asraf, Abdullah Sang, Sook Fah The Nexus Between Financial Development And Environmental Degradation In Asean-5 |
| title | The Nexus Between Financial Development And Environmental
Degradation In Asean-5 |
| title_full | The Nexus Between Financial Development And Environmental
Degradation In Asean-5 |
| title_fullStr | The Nexus Between Financial Development And Environmental
Degradation In Asean-5 |
| title_full_unstemmed | The Nexus Between Financial Development And Environmental
Degradation In Asean-5 |
| title_short | The Nexus Between Financial Development And Environmental
Degradation In Asean-5 |
| title_sort | nexus between financial development and environmental
degradation in asean-5 |
| topic | H Social Sciences (General) HG Finance |
| url | http://ir.unimas.my/id/eprint/17910/ http://ir.unimas.my/id/eprint/17910/1/THE%20NEXUS.pdf |