EXPLORING THE RELATIONSHIP BETWEEN INTERNATIONAL TRADE AND ENVIRONMENT FOR ECONOMIC GROWTH IN ASEAN-5

Rossy Dwi Anita, Teti Nuryati, Firsty Ramadhona Amalia Lubis

Abstract


Economic growth is a measure of a country's success, characterized by an increase in the quality of life of the people, both in terms of education, health and consumption of goods and services. Energy resources are needed to realize economic growth, because many production and consumption activities involve the use of energy. However, in reality, many countries only focus on economic development, which often ignores its impact on the surrounding environment, thereby encouraging a decline in environmental quality. The current environmental degradation can hamper growth and even threaten future development and prosperity. Apart from that, this research also selected export and FDI variables to determine their influence on economic growth in 5 ASEAN countries. The aim of this research is to determine the influence of electrical energy consumption, CO2 emissions, exports and FDI on economic growth in ASEAN-5 for the 2000-2020 period. The best model selected in this research is the Fixed Effect Model (FEM). With the results obtained, electrical energy consumption has a significant negative influence on economic growth, while the other 3 variables (CO2 emissions, exports and FDI) have a positive and significant influence on economic growth.


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References


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