Trade-Environment Triangle di Indonesia: Pendekatan Jejak Ekologis

Deskripsi

This study attempts to examine the relationship between ecological footprint as the more comprehensive environmental degradation indicator and economic growth, trade and investment in Indonesia for the period 1970 to 2017. This study also examines the presence of Environmental Kuznets Curve (EKC) and Pollution Haven Hypothesis (PHH) in one framework known as trade-environment triangle using Autoregressive Distributed Lag (ARDL) and the error correction model (ECM) respectively. The results indicate that the inverted-U shaped relationship does not exist between environmental degradation and economic growth in Indonesia. The relationship between environmental degradation and FDI is not statistically significant which indicates weak support for the PHH and trade significantly increases environmental degradation in Indonesia. The results of this study also provide some policy recommendations to the policymakers..Ada Tabel