Drivers Influencing Green Growth in ASEAN Countries: The Role of Corruption Control, Foreign Direct Investment, Energy Consumption, and Financial Development

Abstract

This study analyzes the impact of control of corruption, foreign direct investment, energy consumption, and financial development on green growth in ASEAN countries during the period 2002-2021. Applying panel data with feasible generalized least squares regression and quantile regression, the results show that control of corruption and financial development positively impact green growth. In contrast, foreign direct investment negatively and inconsistently impacts green growth. Quantile regression results show that the positive impacts of control of corruption and financial development are more pronounced in countries with high green growth. In contrast, foreign direct investment shows a substantial negative impact at high quantiles, implying the need to be more cautious with foreign direct investment projects during green growth aims. Factors such as population growth, urbanization level, service sector value added, and forest area all have negative impacts in most quantiles, emphasizing the urgency of effectively managing these factors to ensure sustainable green growth. Based on the empirical results, policy implications are recommended for ASEAN countries and emerging nations.