Temperature and economic growth nexus in SAARC AND ASEAN countries
Temperature and economic growth nexus in SAARC AND ASEAN countries
Abstract
Global warming is a pressing issue that all countries are facing today. However, it affects the productivity of every sector of the economy and hence economic growth. This study is an attempt to analyze the temperature and economic growth nexus in selected South Asian Association for Regional Cooperation (SAARC) and the Association of Southeast Asian Nations (ASEAN) countries for the time of 1996 to 2018 using Generalized Method of Moments (GMM). This study develops the theoretical framework by extending the Solow growth model by incorporating the temperature in it. The results show that temperature affects economic growth negatively through its detrimental impacts on industrial value-added, agricultural value-added, and political stability in both SAARC and ASEAN regions. However, the study predicts that SAARC countries are more vulnerable regions owing to the rise of warming and temperature than ASEAN countries. Rainfall has a positive and statistically significant effect on the growth of SAARC while this shows positive and insignificant effects in the economy of the ASEAN region. Moreover, industrial value-added and political stability show positive and significant effects on the growth of SAARC and ASEAN but they have a higher impact on the growth of ASEAN countries than SAARC countries' growth. Agricultural value-added has a positive and significant effect on the economic growth of both ASEAN and SAARC countries. Inflation slows down economic growth in ASEAN and SAARC countries. While trade openness, gross fixed capital formation, and government spending spur economic growth in both regions. To sustain the economic growth, policymakers of SAARC and ASEAN countries should take safety measures that can mitigate the emission of greenhouse gases. Moreover, reduction in excessive use of vehicles, reforestation, and environmental technological advancements can reduce the worse effects of rising temperature and protect the environment from degradation.
Downloads
Copyright (c) 2022 Samina Sabir, Amber Imtiaz, Syeda Sada Zahra
This work is licensed under a Creative Commons Attribution 4.0 International License.
EER follow an open-access publishing policy and the full text of all the articles is available free, immediately upon acceptance. Articles are published and distributed under the terms of the Creative Commons Attribution 4.0 International License. Thus, work submitted to EER implies that it is original, unpublished work of the authors; neither published previously nor accepted/under consideration for publication elsewhere. On acceptance of a manuscript for publication, the corresponding author on the behalf of all co-authors of the manuscript will to sign and submit a completed Copyright and Author Consent Form.
The authors will be responsible for any information written/informed/reported in the submitted manuscript. Although we do not require authors to submit the data collection documents and coded sheets used to do quantitative or qualitative analysis, we may request it at any time during the publication process, including after the article has been published. It is the author's responsibility to obtain signed permission from the copyright holder to use and reproduce text, illustrations, tables, etc., published previously in other journals, electronic or print media.
Conflict of interest statements will be published at the end of the article. If no conflict of interest exists, the following sentence will be used: "The authors declare no conflict of interest." Authors are required to disclose any sponsorship or funding received from any institution relating to their research. The editor(s) will determine what disclosures, if any, should be available to the readers.
Authors are not permitted to post the work on any website/blog/forum/board or at any other place, by any means, from the time such work is submitted to UMT journals until the final decision on the paper has been given to them. In case a paper is accepted for publication, the authors may not post the work in its entirety on any website/blog/forum/board or at any other place, by any means, till the paper is published in UMT Journals.
The authors may, however, post the title, author’s names and their affiliations and abstract, with the following statement on the first page of the paper - "The manuscript has been accepted for publication in UMT Journals". After the publication of the article, it may be posted anywhere with full journal citation included and it is encouraged by EER to do relevant efforts for dissemination of research.
All articles published in UMT journals are open-access articles, published and distributed under the terms of the Creative Commons Attribution 4.0 International License, which permits reproduction, distribution, derives and commercial use, provided the original work is properly cited and authors and the publisher is properly identified.
All authors who send their manuscripts to UMT Journals and whose articles are published will retain full copyright of their articles. Notwithstanding this, the author(s) grant UMT Journal(s), its editors, publishers, owners and other persons associated and other users/readers, a license to use the article as described in the License Agreement section below. In the future, UMT may reproduce printed copies of articles in any form. Without prejudice to the terms of the license given below, we reserve the right to reproduce the author's articles in this way.
Licencing Agreement
The EER follows the licensing agreements by Creative Common Attribution 4.0, which indicates that:
Share -copy and redistribute the material in any medium or format
Adapt- remix, transform, and build upon the material for any purpose, even commercially.
Author E-prints
UMT supports a range of author benefit policies with respect to providing authors with an e-print and the opportunity to purchase offprints. E-prints are sent out automatically to the corresponding authors of articles published ahead of print and in print issues. A link is provided allowing the author to download the article directly from the UMT journals website and forward the link onto their co-authors. Please refer to the manuscript submission guidelines for the policy of the journal in which you are interested in submitting or publishing your article.
