Environmental Sustainability in Southeast Asia: Evidence from Linear and Nonlinear Unit Root Tests and Policy Implications

Sefa Özbek and Bahar Özbek

Politická ekonomie, vol. preprint

Abstract: This study focuses on Southeast Asian countries that have attracted attention with their recent economic growth performance. The validity of environmental sustainability is investigated through data for the period 1973-2022. For this purpose, ecological footprint data from Indonesia, the Philippines, Cambodia, Malaysia, Singapore, Thailand and Vietnam are used. Unit root tests with various power properties are used in the study. Firstly, ADF and PP unit root tests based on the Dickey-Fuller unit root test procedure are used in the study. In addition, among the non-linear unit root tests, Leybourne et al. (1998) and Harvey and Mills (2002) unit root tests were used. On the other hand, Hepsağ (2021) unit root test, which includes gradual structural breaks and is among the current non-linear unit root tests, was performed. Results vary depending on unit root tests of different strengths. In general, the validity of environmental sustainability, in other words, convergence, is concluded. These results mostly show the effectiveness of regional and global policies. Some results have revealed that convergence is not valid in some countries, the invalidity of environmental sustainability, and emphasized the effectiveness of national policies

Keywords: Environmental sustainability; convergence; nonlinear unit root; Southeast Asian countries (search for similar items in EconPapers)
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DOI: 10.18267/j.polek.1510

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