Economic Development and Growth

Chee-Lip Tee · Azman Saini · Saifuzzaman Ibrahim ·Institutions and Economies ·2018 ·JEL: F14; F21; O31

This paper is an empirical assessment of the impacts of globalisation on innovative activity across developing countries. The focus is on the role of trade and capital account openness. Extreme-Bound-Analysis (EBA) approach is applied to analyse data from 58 countries over the 1996-2011 period. Though globalisation leads to greater interaction between countries through trade and Foreign Direct Investment(FDI), not all of these interactions affect domestic innovation activities. The result reveal only imports of machinery and equipment promote domestic innovation activity while there is insufficient empirical evidence to suggest that this relationship exists for imports of manufactured goods and FDI inflows. This finding is consistent with the view that import is a more important channel for technology transfer than FDI.

Mahmood Mehraaein · Rafia Afroz · Mehe Zebunnesa Rahman · Md Muhibullah ·Journal of Asian Finance, Economics and Business ·2021 ·JEL: C22, E01, F18, P18, Q42

The objective of this paper is to investigate the impact of economic growth (per capita real GDP), the square of per capita real GDP, energy use, financial development (FD), and foreign direct investment (FDI) on ecological footprint (EF) in the case of Malaysia over the period 1971–2014, by employing the ARDL approach. The long-run results revealed that economic growth has a significant positive impact on the ecological footprint and it implies that the economic growth deteriorates the environmental quality in Malaysia. Conversely, the square of GDP showed a negative and significant impact on the EF in the long run. As the coefficient of GDP in our study is positive and statistically significant while the coefficient of squared GDP is negatively significant, thus, this study supports the presence of the environmental Kuznets curve (EKC) hypothesis in the case of Malaysia. Furthermore, the result indicates that FDI has a positive and significant impact on the EF in the long run, which means a rise in FDI will enhance the environmental pollution level. Thus, it confirms the pollution haven hypothesis. Hence, it suggests that Malaysia imposes stricter environmental policies. Further, FDI and FD are causing GDP in Malaysia, but through increasing EF.