| SMART JOURNAL OF BUSINESS MANAGEMENT STUDIES |
VOL. 20 |
NO. 1 |
PAPER 5 |
10.5958/2321-2012.2024.00005.8 |
ENVIRONMENTAL AND MACROECONOMIC INDICATORS:ANALYSIS FROM MALAYSIA |
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| Nurul Afiqa Ghazal*, Masturah Ma’in* and Achmad Tohirin** |
| * Faculty of Business and Management, Universiti Teknologi MARA,
Puncak Alam, Selangor, Malaysia |
| ** Faculty of Business and Economics, Universitas Islam Indonesia, Condong Catur Depok Sleman, Yogyakarta 55283, Indonesia |
| 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.
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