Economic Growth and Environmental Pollution in Brunei: ARDL Bounds Testing Approach to Cointegration

Hemed, Issa Moh’d and Faki, Suleiman Malik and Suleiman, Salim Hamad (2019) Economic Growth and Environmental Pollution in Brunei: ARDL Bounds Testing Approach to Cointegration. Asian Journal of Economics, Business and Accounting, 10 (4). pp. 1-11. ISSN 2456-639X

[thumbnail of Hemed1042019AJEBA47816.pdf] Text
Hemed1042019AJEBA47816.pdf - Published Version

Download (285kB)

Abstract

Aims: This study examined the short run and long run dynamic relationship between economic growth and environmental pollution in Brunei. We adoptedAuto Regressive Distributed Lag (ARDL) model to scrutinize the existence of the Environmental Kuznets Curve (EKC) among the studying variables by using time series data cover the period of 1974 to 2014.

Methodology: The ARDL bound test revealed the existence of long-run relationship among the integrated variables when CO2 chosen as a dependent variable.

Results: The results support the existences of EKC hypotheses in the long-run whereas in the short-run an inverted U-shaped curve was not confirmed between GDP and CO2 in Brunei. The results of Granger causality based on VECM analysis have shown unidirectional causality runs from economic growth to CO2 in the short run. Further analysis through stability test indicates the coefficients in the model are stable and do not suffers with structural break within the time taken in the study.

Conclusion: The government of Brunei should proceed to target the sustainable means of production, which has an environmental friendly and consumes less energy to enhance economic growth and maintain environmental quality in the long run.

Item Type: Article
Subjects: Souths Book > Social Sciences and Humanities
Depositing User: Unnamed user with email support@southsbook.com
Date Deposited: 29 Apr 2023 07:17
Last Modified: 05 Sep 2024 11:51
URI: http://research.europeanlibrarypress.com/id/eprint/571

Actions (login required)

View Item
View Item