PANEL DATA STUDY OF ASEAN COUNTRIES ABOUT TOURISM, TRADE AND ENVIRONMENTAL SUSTAINABILITY

Abstract

This research explores the determinants of environmental sustainability in the form of tourism and trade for eight ASEAN economies over the time 2001 to 2020. In the presence of cross-sectional dependency in the cross section, we apply the 2^nd generation unit root test to check the stationary of the variables. On the basis of mixed order of integration, we utilize the panel ARDL (PMG) method for short and long run analysis. The empirical findings reveal that the tourism, trade, GDP, and industrialization are significant contributors in increasing environmental degradation in long run scenario. But the effects of tourism and trade are positive and significant on environment degradation in short run. In the light of these results, trade and tourism are effective and useful tools for environmental sustainability in ASEAN countries. Further research can be conducted by including economic and regulatory indicators along with trade and tourism to design as effective policy to maintain environmental sustainability.