The effect of oil, coal and renewable energy consumption, economic growth and trade on carbon emissions in ASEAN-5: Insights from panel ARDL and method of moments quantile regression (MMQR) analysis

This paper provides a study of the relationship between sustainable development and foreign direct investment (FDI) from an empirical point of view in the case of the North African countries during the period from 1985 to 2005. We use the cointegration test, the FMOLS (Fully Modified Ordinary Least Squares) model and the Granger causality test to examine this relationship. According to the empirical results, we confirm the existence of a cointegration relationship between the different series studied in this paper. Based on the cointegration test we can use the error correction model. Also, to test the effect of FDI on sustainable development in the North African countries, we make an estimate by FMOLS method. We found that the foreign direct investment has a positive impact on CO2 emissions. Also, the Granger Causality test confirms the presence of a bidirectional relationship between FDI and CO2 emissions (Carbon dioxide). That is to say, the FDI can cause CO2 emissions and CO2 emissions can cause FDI based on the Granger causality.

The paper aims to explore the impact of financial risks on the firm value of banks in ASEAN-5 countries. The study used the panel data regression model to analyze the available data for 63 commercial banks in ASEAN-5 countries from 2009 to 2017, totaling 567 observations. GMM dynamic estimation was also used for robustness and comparison purposes. The financial risk was measured using the non-performing loans ratio (NPL), the loan to deposit ratio (LD), the liquid asset ratio (LATA), the cost to income ratio (CIR), and the net interest margin (NIM), while firm value was measured using the enterprise value. The study used controlled variables proxied by size, GDP growth and the inflation rate, while the correlation between credit risk and interest rate risk (CR•IR) was also determined. Given the results of the study, credit risk proxy by non-performing loans ratio has a significant positive effect on the firm value, the liquidity risk (LD) has a significant positive impact on the firm value of ASEAN banks, while LATA has a significant negative effect on the firm value. Operational risk (CIR) and interest rate risk (NIM) have a significant negative impact on the firm value of ASEAN-5 banks. Bank size and inflation rate significantly and negatively affect the firm value, while GDP growth is found to have a significant positive impact on the firm value of ASEAN-5 banks. An insignificant interaction is found between credit risk and interest rate risk (CR•IR). The GMM estimation also supported these findings. The results obtained will be an important signal for policy makers, which is useful for the effective mobilization and allocation of credits to productive areas and helps manage inherent risks. The study provides implications for all countries regarding the financial risks associated with the value of the firm. Therefore, this study offers new insights into this relationship by providing useful information to the academics, policy makers, governments, and other stakeholders and serves as a benchmark for further study in this area.

The automotive industry plays a crucial role in national and global economic development. Vietnam and the ASEAN-5 countries are commented to be active in the automotive international production network but mainly participate in the low-value-added segments of the global value chains (GVC). This study aims to identify Vietnam’s position and level of participation in the global automotive value chain and compare them to the other ASEAN-5 nations. The paper uses the orthodox and modern trade-related GVC indicators built by Koopman et al. (2010) to accomplish the research objective. The results show that Vietnam and the ASEAN-5 countries located downstream of the global automotive value chain often have less potential to gain more value-added than the upstream position, despite their high level of participation. Compared to ASEAN-5 countries, Vietnam still needs to catch up. Although Vietnam’s auto industry has made many positive changes, it still mainly produces simple products and currently participates in the least added value segment in the global automotive value chain. The underdeveloped support industry in Vietnam is the main cause of this situation. The study makes several practical policy recommendations for Vietnam based on the research findings to improve its position in the production network for the automotive sector in the following years.

Acknowledgment
The authors would like to thank the VNU University of Economics and Business, Hanoi, for financing the Research Project, number BBQT.04.2022.