ENVIRONMENTAL AND MACROECONOMIC INDICATORS: ANALYSIS FROM MALAYSIA

• Published in: SMART-JOURNAL OF BUSINESS MANAGEMENT STUDIES
• Main Authors: Ghazali, Nurul Afiqa; Ma'in, Masturah; Tohirin, Achmad
• Format: Article; Early Access
• Language: English
• Published: SCIENTIFIC MANAGEMENT & ADVANCED RESEARCH TRUST 2024
• Subjects: Business & Economics
• Online Access: https://www-webofscience-com.uitm.idm.oclc.org/wos/woscc/full-record/WOS:001128775100001

The growing knowledge of global warming and the global action to mitigate, have caused a heightened sense of alarm about the root causes of the problem. In recent times, the connection between environmental damage and the economy has become the main issue in the area of environmental field. This paper proposes to investigate the association between macroeconomic indicators and carbon emissions. The macroeconomic indicators are Gross Domestic Product (GDP), Foreign Direct Investment (FDI), and Trade (T). Annual data of the variables were gathered for the period from year 1990 until 2021, and the results from Ordinary Least Square (OLS) regression had shown Trade and FDI to be significantly related to carbon emissions. The Autoregressive Distributed Lag (ARDL) results found that macroeconomic indicators affected carbon emissions in Malaysia. Hence, it is essential for the government to focus on attracting FDI that contributes to decarbonisation while reducing trade-related carbon emissions.