Impact of Government Stability and Investment Profile on Forest Area: The Role of Natural Protected Areas

Sha Qiao, Caihong Zhang, Lizeth Cuesta, Rafael Alvarado (), Stefania Pinzón and Diana Bravo-Benavides
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Sha Qiao: School of Economics & Management, Beijing Forestry University, Beijing 100083, China
Caihong Zhang: School of Economics & Management, Beijing Forestry University, Beijing 100083, China
Lizeth Cuesta: Carrera de Economía and Centro de Investigaciones Sociales y Económicas, Universidad Nacional de Loja, Loja 110150, Ecuador
Stefania Pinzón: Carrera de Economía and Centro de Investigaciones Sociales y Económicas, Universidad Nacional de Loja, Loja 110150, Ecuador

Sustainability, 2022, vol. 14, issue 8, 1-20

Abstract: Forest area plays a fundamental role in air and water quality and directly impacts agricultural productivity. This research aims to examine the impact of government stability and investment profiles on forest cover in countries within the ASEAN region. Specifically, the research includes Brunei Darussalam, Indonesia, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam. In the research development, we examine the role which protected natural areas play in the conservation of forests. We employ second-generation cointegration methods of cross-section dependence and slope heterogeneity. The results suggest that forest cover has been significantly reduced in this region, while government stability and the investment profile have a volatile behavior. The second-generation cointegration test results suggest there is no long-term relationship between the three series. Likewise, the short- and long-term elasticities highlight the importance of environmental protection policies to conserve forests.

Keywords: forest area; government stability; investment profile; fully modified ordinary least squares (FMOLS); augmented mean group estimator (AMG); common correlated effects mean group estimator (CCE-MG) (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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