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Journal : Economics, Business, Accounting

Short-Run Gains, Long-Run Trade-Offs: Revisiting FDI, Trade Openness, and Renewable Energy in ASEAN Economic Growth Pratiwi, Dwi Sartika Lingga; Rohima, Siti; Bashir, Abdul
Economics, Business, Accounting & Society Review Vol. 4 No. 1 (2025): Economics, Business, Accounting & Society Review
Publisher : International Ecsis Association

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.55980/ebasr.v4i1.181

Abstract

ASEAN economies have undergone significant structural transformation, driven by increasing foreign direct investment (FDI), trade openness, and renewable energy adoption. This study investigates the long-run relationship among these variables and their effects on economic growth across ten ASEAN countries from 1998 to 2022. Using panel data and an Autoregressive Distributed Lag (ARDL) approach, this research examines both short-run and long-run dynamics. The long-run estimation reveals that FDI negatively affects economic growth with a coefficient of -0.486, indicating crowding-out effects and institutional inefficiencies. Similarly, trade openness shows a significant negative impact (-0.010), reflecting vulnerabilities related to external shocks and structural imbalance. In contrast, renewable energy consumption exerts a positive and significant influence (0.224), supporting the green growth hypothesis. Short-run results differ, with both FDI and trade openness positively influencing growth, while renewable energy remains statistically insignificant. The model confirms long-run cointegration among variables, validating their interdependence in shaping growth trajectories. These findings highlight that while FDI and trade liberalization may yield short-term gains, their long-term benefits depend on institutional quality and policy design. The study contributes to policy discourse by emphasizing the strategic importance of investing in renewable energy infrastructure and enhancing domestic absorptive capacity to sustain inclusive and resilient economic growth in ASEAN.
Blessing or Burden? Rethinking Natural Resources and Economic Growth in Emerging Markets Sari, Meliana; Yulianita, Anna; Bashir, Abdul
Economics, Business, Accounting & Society Review Vol. 4 No. 1 (2025): Economics, Business, Accounting & Society Review
Publisher : International Ecsis Association

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.55980/ebasr.v4i1.200

Abstract

Rapid globalization, environmental shifts, and economic volatility have renewed interest in growth drivers of emerging economies. This study investigates the long-run and short-run impacts of natural resources, financial development, and trade openness on economic growth in emerging market economies. Using a quantitative approach and panel data spanning from 1997 to 2021, the research covers ten emerging countries: Brazil, Russia, India, China, South Africa, Argentina, Indonesia, Mexico, Poland, and Turkey. Data were sourced from the World Bank, and the Autoregressive Distributed Lag (ARDL) model was employed to examine both short- and long-term dynamics. The empirical results reveal that natural resource rents negatively and significantly affect economic growth in both time horizons, indicating the persistence of the resource curse in these economies. Conversely, financial development and trade openness exhibit positive and significant effects on economic growth over the long and short run. The presence of cointegration confirms a stable long-run relationship among the variables. This study contributes to the literature by providing robust cross-country panel evidence supporting the notion that institutional and policy frameworks are critical in transforming natural resource wealth into sustainable growth. The findings imply that emerging markets must strengthen financial systems and pursue trade liberalization while implementing more effective governance of natural resources to mitigate their negative externalities and unlock long-term growth potential.