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Environmental sustainability

Study Finds Economic Growth in ASEAN Countries Linked to Ecological Footprint

Strategic Insights

— 1 min read

Research conducted by researchers from Mae Fah Luang University has shown that economic growth in ASEAN countries is linked to an increased ecological footprint. The study, which analyzed data from 1993 to 2017, used various panel econometric techniques to examine the relationship between economic growth, energy consumption, the shadow economy, and foreign direct investment on the ecological footprint in the region. The findings indicate that energy consumption, the size of the shadow economy, and foreign direct investment have a statistically significant and positive impact on the ecological footprint.

Key Takeaways:

  • The study examined the influence of economic growth, energy consumption, the shadow economy, and foreign direct investment on the ecological footprint in ASEAN countries over a period of 25 years.
  • The analysis covered a panel of nine member states: Brunei, Cambodia, Indonesia, Lao PDR, Malaysia, the Philippines, Singapore, Thailand, and Vietnam.
  • The study used various panel econometric techniques, including cross-sectional dependence, panel unit root, and cointegration tests, as well as estimation methods such as Driscoll-Kraay standard errors, feasible generalized least squares (FGLS), and panel-corrected standard errors (PCSE).
  • The results show that energy consumption, the size of the shadow economy, and foreign direct investment exert a statistically significant and positive impact on the ecological footprint towards the Driscoll-Kraay standard errors, FGLSs, and PCSE estimators.
  • The study concludes that a country's pursuit of economic growth should be aligned with a higher degree of environmental sustainability by strategically reducing energy consumption, curbing the shadow economy, and managing foreign direct investment responsibly.

Statistics:

  • The study analyzed data from 1993 to 2017, covering a period of 25 years.
  • The analysis used a panel of nine member states in the ASEAN region.
  • The study found that energy consumption, the shadow economy, and foreign direct investment have a statistically significant and positive impact on the ecological footprint.
  • The study used various panel econometric techniques to ensure robustness, including cross-sectional dependence, panel unit root, and cointegration tests.

Sources:

  • Shadow Economy and the Ecological Footprint Nexus: The Implication of Foreign Direct Investment in ASEAN Countries. Economies, 2025,13(9):258. (MDPI AG - http://www.mdpi.com/journal/economies)
  • The research was conducted by Nattapan Kongbuamai, Quocviet Bui, and Suthep Nimsai at Mae Fah Luang University.

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