Özet:

Abstract The deepening of financial development and trade liberalization has been taking place in Indonesia since the Association of Southeast Asian Countries (ASEAN) formed in 1967. As a result, Indonesia experienced substantial growth in various economic sectors. However, this growth could also bring a negative externality such as environmental degradation to this country. This research paper investigated how financial development and trade liberalization could affect the country’s environmental quality. This research utilized the time series approach, such as the Autoregressive Distributed Lag Model (ARDL), to test the determinant of environmental quality for Indonesia based on selected macroeconomic determinants with special emphasis on financial development and trade liberalization. The study used annual data from 1971 until 2020, which spans about 50 years. Based on the main outcomes, deepening financial development helps to improve environmental quality. However, at the same time, higher trade liberalization has caused greater environmental degradation. Therefore, the policymakers must ensure that more financial institutions in the country support their government in promoting sustainable growth by giving more loans to companies that promote using clean energy for development purposes. Besides, the country should monitor more closely any heavy industries such as chemicals production that operate to meet the demand for the oversea market by ensuring strict rules are enforced to avoid any negative externalities to the environment. Downloads Download data is not yet available. Author Biography Abdul Rahim Ridzuan, Faculty of Business and Management, Universiti Teknologi MARA, Malaysia; Faculty of Economics and Business, Universitas Airlangga, Indonesia; Institute for Big Data Analytics and Artificial Intelligence, Universiti Teknologi MARA, Malaysia; Centre for Economic Development and Policy, Universiti Malaysia Sabah, Malaysia; Accounting Research Institute, Universiti Teknologi MARA, Malaysia; Institute for Research on Socio Economic Policy, Universiti Teknologi MARA, Malaysia, Index Publication Coordinator & Head of Scholar and Research Unit, Universiti Teknologi MARA (UiTM) Downloads FULL TEXT Published 2022-09-27 How to Cite Ridzuan, A. R., Fianto, B. A., Esquivias, M. A., Kumaran, V. V., Shaari, M. S., & Albani, A. (2022). Do Financial Development and Trade Liberalization Influence Environmental Quality in Indonesia? Evidence-based on ARDL Model. International Journal of Energy Economics and Policy, 12(5), 342–351. https://doi.org/10.32479/ijeep.13494 More Citation Formats ACM ACS APA ABNT Chicago Harvard IEEE MLA Turabian Vancouver Download Citation Endnote/Zotero/Mendeley (RIS) BibTeX Issue Vol. 12 No. 5 (2022) Section Articles License Submission of an article implies that the work described has not been published previously , that it is not under consideration for publication elsewhere, that its publication is approved by all authors and tacitly or explicitly by the responsible authorities where the work was carried out, and that, if accepted, will not be published elsewhere in the same form, without the written consent of the Publisher. The Editors reserve the right to edit or otherwise alter all contributions, but authors will receive proofs for approval before publication. Most read articles by the same author(s) Mohd Shahidan Shaari, Noorazeela Zainol Abidin, Zulkefly Abdul Karim, The Impact of Renewable Energy Consumption and Economic Growth on CO2 Emissions: New Evidence using Panel ARDL Study of Selected Countries , International Journal of Energy Economics and Policy: Vol. 10 No. 6 (2020) Abdul Rahim Ridzuan, Shahsuzan Zakaria, Bayu Arie Fianto, Nora Yusma Mohamed Yusoff, Nor Fatimah Che Sulaiman, Mohamad Idham Md Razak, Siswantini Siswantini, Arsiyanti Lestari, Nexus between Financial Development and Income Inequality before Pandemic Covid-19: Does Financial Kuznets Curve Exist in Malaysia, Indonesia, Thailand and Philippines? , International Journal of Energy Economics and Policy: Vol. 11 No. 2 (2021) Mohd Shahidan Shaari, Noorazeela Zainol Abidin, Abdul Rahim Ridzuan, Muhammad Saeed Meo, The Impacts of Rural Population Growth, Energy use and Economic Growth on CO2 Emissions , International Journal of Energy Economics and Policy: Vol. 11 No. 5 (2021) Abdul Rahim Ridzuan, Aliashim Albani, Abdul Rais Abdul Latiff, Mohamad Idham Md Razak, Mohd Haziq Murshidi, The Impact of Energy Consumption based on Fossil Fuel and Hydroelectricity Generation towards Pollution in Malaysia, Indonesia and Thailand , International Journal of Energy Economics and Policy: Vol. 10 No. 1 (2020) Abdul Rahim Ridzuan, Mohd Shahidan Shaari, Anita Rosli, Abdul Rahim Md Jamil, Siswantini Siswantini, Arsiyanti Lestari, Shahsuzan Zakaria, The Nexus between Economic Growth and Natural Resource Abundance in Selected ASEAN countries before Pandemic Covid-19 , International Journal of Energy Economics and Policy: Vol. 11 No. 2 (2021) Ernie Hendrawaty, Mohd Shahidan Shaari, Fajrin Satria Dwi Kesumah, Abdul Rahim Ridzuan, Economic Growth, Financial Development, Energy Consumption and Life Expectancy: Fresh Evidence from ASEAN countries , International Journal of Energy Economics and Policy: Vol. 12 No. 2 (2022) Mohd Shahidan Shaari, Diana Nabila Chau Abdullah, Nur Salimah Alias, Nor Syamimi Mohamed Adnan, Positive and Negative Effects of Research and Development , International Journal of Energy Economics and Policy: Vol. 6 No. 4 (2016) Vikniswari Vija Kumaran, Abdul Rahim Ridzuan, Farman Ullah Khan, Hussin Abdullah, Zam Zuriyati Mohamad, An Empirical Analysis of Factors Affecting Renewable Energy Consumption in Association of Southeast Asian Nations-4 Countries , International Journal of Energy Economics and Policy: Vol. 10 No. 2 (2020) Abdul Rahim Ridzuan, Vikniswari Vija Kumaran, Bayu Arie Fianto, Mohd Shahidan Shaari, Miguel Angel Esquivias, Aliashim Albani, Reinvestigating the Presence of Environmental Kuznets Curve in Malaysia: The Role of Foreign Direct Investment , International Journal of Energy Economics and Policy: Vol. 12 No. 5 (2022) Abdul Rahim Ridzuan, Noraina Mazuin Sapuan, Nur Hayati Abd Rahman, Halimahton Borhan, Azhana Othman, The Impact of Corruption on Environmental Quality in the Developing Countries of ASEAN–3: The Application of the Bound Test , International Journal of Energy Economics and Policy: Vol. 9 No. 6 (2019) 1  2  3  >  >>  Make a Submission Make a Submission Dergi Kapağı

Anahtar Kelimeler: