Open AccessThe Environmental Effects of Financial Market Development in East Asian and Southeast Asian Countries
Author(s) -
Shanty Oktavilia,
Firmansyah Firmansyah,
Indah Fajarini Sri Wahyuningrum,
Andryan Setyadharma,
Erma
Publication year - 2020
Publication title -
iop conference series. earth and environmental science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.179
H-Index - 26
eISSN - 1755-1307
pISSN - 1755-1315
DOI - 10.1088/1755-1315/448/1/012082
Subject(s) - openness to experience , foreign direct investment , kuznets curve , per capita income , east asia , environmental quality , economics , investment (military) , per capita , financial sector development , international economics , economic growth , geography , developing country , macroeconomics , china , political science , psychology , social psychology , population , demography , archaeology , sociology , politics , law
This study aims to examine the effect of financial market development, investment, and trade openness on the environmental quality of East Asian and Southeast Asian countries from 1991-2017. Differences in the influence of the East and Southeast Asian region on environmental quality indicators are accommodated by using the dummy variable of the region. All data is sourced from World Development Indicators - World Bank. The results of this study reinforce the notion that per capita income (GDPCap), the environmental effects of financial market development (FMDev), Foreign Direct Investment (FDI), trade openness (TL), influence according to the hypothesis. The Empirical Kuznets Curve (EKC) hypothesis was empirically proven in both regions. Capital inflows and trade openness negatively affect environmental quality, while financial market development (FMDev) has a positive effect on environmental quality in both regions