IDEAS home Printed from https://ideas.repec.org/p/hal/journl/hal-03121009.html
   My bibliography  Save this paper

Overall business climate and its impact on environmental sustainability: analyzing evidence from ASEAN countries

Author

Listed:
  • Meqbel Mishary Aliedan

    (KFU - King Faisal University)

Abstract

This study examines the impact of overall business climate on the environmental sustainability factor by specifically considering the ASEAN countries named as Philippines, Malaysia, Vietnam and Singapore. This paper fills the gap of the previous researches by majorly considering the trade openness, competitiveness and ease of doing business as independent variables, environmental sustainability as a dependent variable, while GDP and inflation are studied as controlling variables. All the variables data are collected from the country's official sites over the period of 2000-2015. The long-run equilibrium relationship between the tested variables is confirmed by Kao and Pedroni based panel cointegration tests. According to the fully modified ordinary least square (FMOLS) results, the trade openness, ease of doing business, and GDP cause a significant negative influence on the environmental sustainability within the selected states as compared to competitiveness based independent variables. This paper is an informative approach in front of their state's business community, government, policymakers, natives, and other related ones to consider the negative influence of overall business climate on the environment. In addition, there are some limitations like if industrialization and population growth are considered as controlling variables then more significant and authentic outcomes will be generated.

Suggested Citation

  • Meqbel Mishary Aliedan, 2020. "Overall business climate and its impact on environmental sustainability: analyzing evidence from ASEAN countries," Post-Print hal-03121009, HAL.
    • Handle: RePEc:hal:journl:hal-03121009
    DOI: 10.9770/jssi.2020.10.oct(22)
    Note: View the original document on HAL open archive server: https://hal.science/hal-03121009
    as

    Download full text from publisher

    File URL: https://hal.science/hal-03121009/document
    Download Restriction: no
    File URL: https://libkey.io/10.9770/jssi.2020.10.oct(22)?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Mohamed Ali Al Mazrouei & Khalizani Khalid & Ross Davidson, 2020. "Development and validation of a safety climate scale for United Arab Emirates oil and gas industries," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 7(4), pages 2863-2882, June.
    2. Simplice A. Asongu & Nicholas M. Odhiambo, 2019. "Challenges of Doing Business in Africa: A Systematic Review," Journal of African Business, Taylor & Francis Journals, vol. 20(2), pages 259-268, April.
    3. Shahbaz, Muhammad & Shahzad, Syed Jawad Hussain & Ahmad, Nawaz & Alam, Shaista, 2016. "Financial development and environmental quality: The way forward," Energy Policy, Elsevier, vol. 98(C), pages 353-364.
    4. Nasreen, Samia & Anwar, Sofia & Ozturk, Ilhan, 2017. "Financial stability, energy consumption and environmental quality: Evidence from South Asian economies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 67(C), pages 1105-1122.
    5. Francesca Mazzoni, 2020. "Circular economy and eco-innovation in Italian industrial clusters. Best practices from Prato textile cluster," Post-Print hal-03271849, HAL.
    6. Shun-Pin Chuang & Sun-Jen Huang, 2018. "The Effect of Environmental Corporate Social Responsibility on Environmental Performance and Business Competitiveness: The Mediation of Green Information Technology Capital," Journal of Business Ethics, Springer, vol. 150(4), pages 991-1009, July.
    7. W.M.Muli & J.O. Aduda & J.L. Lishenga & D.O. Abala, 2017. "The Moderating Effect of Economic Growth on the Relationship between Economic Integration and Foreign Direct Investment in the East African Community," Journal of Finance and Investment Analysis, SCIENPRESS Ltd, vol. 6(3), pages 1-4.
    8. Andrea Bernardi, 2019. "Using the capability approach and organizational climate to study occupational health and safety," Post-Print hal-02163019, HAL.
    9. Le, Thai-Ha & Chang, Youngho & Park, Donghyun, 2016. "Trade openness and environmental quality: International evidence," Energy Policy, Elsevier, vol. 92(C), pages 45-55.
    10. Rajah Rasiah & Abul Quasem Al-Amin & Anwar Hossain Chowdhurry & Ferdous Ahmed & Chen Zhang, 2018. "Climate change mitigation projections for ASEAN," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 23(2), pages 195-212, April.
    11. Tatiana Vitalievna Pogodina & Vera Grigoryevna Aleksakhina & Vladimir Arsenjevich Burenin & Тatiana Nicolaevna Polianova & Lenar Albertovich Yunusov, 2019. "Towards the innovation-focused industry development in a climate of digitalization: the case of Russia," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 6(4), pages 1897-1906, June.
    12. Branimir Jovanovic & Biljana Jovanovic, 2018. "Ease of doing business and FDI in the ex-socialist countries," International Economics and Economic Policy, Springer, vol. 15(3), pages 587-627, July.
    13. Chen, Xu & Wang, Xiaojun & Chan, Hing Kai, 2017. "Manufacturer and retailer coordination for environmental and economic competitiveness: A power perspective," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 97(C), pages 268-281.
    14. Anna Shevyakova & Eleonorа Munsh & Malika Arystan, 2019. "Towards diversification of the economy of Kazakhstan via information support for the tourism industry," Insights into Regional Development, VsI Entrepreneurship and Sustainability Center, vol. 1(2), pages 138-154, June.
    15. Charfeddine, Lanouar & Ben Khediri, Karim, 2016. "Financial development and environmental quality in UAE: Cointegration with structural breaks," Renewable and Sustainable Energy Reviews, Elsevier, vol. 55(C), pages 1322-1335.
    16. Evans S. Osabuohien & John T. Odebiyi & Uchenna R. Efobi & Oluyemi O. Fayomi, 2017. "Financial Development, Trade Costs and Bilateral Trade Flows: Connecting the Nexus in ECOWAS," Advances in African Economic, Social and Political Development, in: Diery Seck (ed.), Investment and Competitiveness in Africa, pages 153-175, Springer.
    17. Judit Oláh & Nicodemus Kitukutha & Hossam Haddad & Miklós Pakurár & Domicián Máté & József Popp, 2018. "Achieving Sustainable E-Commerce in Environmental, Social and Economic Dimensions by Taking Possible Trade-Offs," Sustainability, MDPI, vol. 11(1), pages 1-22, December.
    18. Madhu Sehrawat & A.K. Giri, 2016. "Panel data analysis of financial development, economic growth and rural-urban income inequality," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 43(10), pages 998-1015, October.
    19. Huaping Sun & Samuel Attuquaye Clottey & Yong Geng & Kai Fang & Joshua Clifford Kofi Amissah, 2019. "Trade Openness and Carbon Emissions: Evidence from Belt and Road Countries," Sustainability, MDPI, vol. 11(9), pages 1-20, May.
    20. Erik Canton & Marta Petrucci, 2017. "Ease of doing business in the euro area," Quarterly Report on the Euro Area (QREA), Directorate General Economic and Financial Affairs (DG ECFIN), European Commission, vol. 16(2), pages 21-29, October.
    21. W.M. Muli & J.O. Aduda, 2017. "The Mediating Effect of Ease of Doing Business on the Relationship between Economic Integration and Foreign Direct Investment in the East African Community," Journal of Finance and Investment Analysis, SCIENPRESS Ltd, vol. 6(4), pages 1-2.
    22. Yasemin Dumrul, 2018. "Estimating the Impact of the Financial Development on Energy Consumption: A Co-integration Analysis," International Journal of Energy Economics and Policy, Econjournals, vol. 8(5), pages 294-299.
    23. Alfonsus Budi Susanto, 2019. "The Effect Of Government Policy And Environmental Sustainability On The Performance Of Tourism Business Competitiveness: Empirical Assessment On The Reports Of International Tourism Agencies," International Journal of Energy Economics and Policy, Econjournals, vol. 9(6), pages 439-446.
    24. Francesca Mazzoni, 2020. "Circular economy and eco-innovation in Italian industrial clusters. Best practices from Prato textile cluster," Insights into Regional Development, VsI Entrepreneurship and Sustainability Center, vol. 2(3), pages 661-676, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ulucak, Zübeyde Şentürk & İlkay, Salih Çağrı & Özcan, Burcu & Gedikli, Ayfer, 2020. "Financial globalization and environmental degradation nexus: Evidence from emerging economies," Resources Policy, Elsevier, vol. 67(C).
    2. Acheampong, Alex O., 2019. "Modelling for insight: Does financial development improve environmental quality?," Energy Economics, Elsevier, vol. 83(C), pages 156-179.
    3. AhAtil, Ahmed & Bouheni, Faten Ben & Lahiani, Amine & Shahbaz, Muhammad, 2019. "Factors influencing CO2 Emission in China: A Nonlinear Autoregressive Distributed Lags Investigation," MPRA Paper 91190, University Library of Munich, Germany, revised 02 Jan 2019.
    4. Mahmood, Ahmad & Zahoor, Ahmed & Xiyue, Yang & Nazim, Hussain & Sinha, Avik, 2021. "Financial development and environmental degradation: Do human capital and institutional quality make a difference?," MPRA Paper 110039, University Library of Munich, Germany, revised 2021.
    5. Acheampong, Alex O. & Amponsah, Mary & Boateng, Elliot, 2020. "Does financial development mitigate carbon emissions? Evidence from heterogeneous financial economies," Energy Economics, Elsevier, vol. 88(C).
    6. Xu, Xin & Huang, Shupei & An, Haizhong & Vigne, Samuel & Lucey, Brian, 2021. "The influence pathways of financial development on environmental quality: New evidence from smooth transition regression models," Renewable and Sustainable Energy Reviews, Elsevier, vol. 151(C).
    7. Asongu, Simplice A. & Odhiambo, Nicholas M., 2021. "Inequality, finance and renewable energy consumption in Sub-Saharan Africa," Renewable Energy, Elsevier, vol. 165(P1), pages 678-688.
    8. Mariana Sedliačiková & Zuzna Stroková & Miloš Hitka & Nikoleta Nagyová, 2020. "Employees versus implementing controlling to the business practice," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 7(3), pages 1527-1540, March.
    9. Asongu, Simplice & Vo, Xuan, 2020. "The Effect of Finance on Inequality in Sub-Saharan Africa: Avoidable CO2 emissions Thresholds," MPRA Paper 103233, University Library of Munich, Germany.
    10. Bressanelli, Gianmarco & Visintin, Filippo & Saccani, Nicola, 2022. "Circular Economy and the evolution of industrial districts: a supply chain perspective," International Journal of Production Economics, Elsevier, vol. 243(C).
    11. Sayed Saghaian & Hosein Mohammadi & Morteza Mohammadi, 2022. "The Effects of Agricultural Product Exports on Environmental Quality," Sustainability, MDPI, vol. 14(21), pages 1-11, October.
    12. Dorian R. Woods & Yvonne Benschop & Marieke van den Brink, 2022. "What is intersectional equality? A definition and goal of equality for organizations," Gender, Work and Organization, Wiley Blackwell, vol. 29(1), pages 92-109, January.
    13. E P Mesagan, 2021. "Efficiency of Financial Integration, Foreign Direct Investment and Output Growth: Policy Options for Pollution Abatement in Africa," Economic Issues Journal Articles, Economic Issues, vol. 26(1), pages 1-19, March.
    14. Islam, Md. Monirul & Irfan, Muhammad & Shahbaz, Muhammad & Vo, Xuan Vinh, 2022. "Renewable and non-renewable energy consumption in Bangladesh: The relative influencing profiles of economic factors, urbanization, physical infrastructure and institutional quality," Renewable Energy, Elsevier, vol. 184(C), pages 1130-1149.
    15. Shahbaz, Muhammad & Nasir, Muhammad Ali & Roubaud, David, 2018. "Environmental degradation in France: The effects of FDI, financial development, and energy innovations," Energy Economics, Elsevier, vol. 74(C), pages 843-857.
    16. Irina I. Frolova & Vladimir V. Nosov & Nadezhda B. Zavyalova & Aleksei E. Dorofeev & Tatiana M. Vorozheykina & Lyudmila I. Petrova, 2020. "Labor opportunism as a blocking factor for the innovative development of industrial enterprises," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 7(3), pages 2228-2242, March.
    17. Inna Gennadievna Kuznetsova & Hilary Izuchukwu Okagbue & Alla Borisovna Plisova & Elena Evgenyevna Noeva & Mariya Vladimirovna Mikhailova & Galina Vladimirovna Meshkova, 2020. "The latest transition of manufacturing agricultural production as a result of a unique generation of human capital in new economic conditions," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 8(1), pages 929-944, September.
    18. George E. Halkos & Michael L. Polemis, 2017. "Does Financial Development Affect Environmental Degradation? Evidence from the OECD Countries," Business Strategy and the Environment, Wiley Blackwell, vol. 26(8), pages 1162-1180, December.
    19. Deng, Qiu Shi & Alvarado, Rafael & Cuesta, Lizeth & Tillaguango, Brayan & Murshed, Muntasir & Rehman, Abdul & Işık, Cem & López-Sánchez, Michelle, 2022. "Asymmetric impacts of foreign direct investment inflows, financial development, and social globalization on environmental pollution," Economic Analysis and Policy, Elsevier, vol. 76(C), pages 236-251.
    20. Mergul Chemirbayeva & Zhanat Malgarayeva & Almagul Azamatova, 2020. "Economic strategy of diversification of enterprise activities under conditions of globalization," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 8(2), pages 1083-1102, December.

    More about this item

    Keywords

    Trade Openness; Competitiveness; Ease of Doing Business; GDP; Inflation; Environmental Sustainability;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hal:journl:hal-03121009. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.