Citation:

Dewi Fitriani, Herman Cahyo Diartho, Duwi Yunitasari. "Does Environmental Degradation Drive Economic Growth? Evidence from Indonesia and Vietnam" International Research Journal of Economics and Management Studies, Vol. 4, No. 5, pp. 324-334, 2025.

Abstract:

This study discusses the effect of Foreign Direct Investment, Human Development Index, and Emissions on economic growth in Indonesia and Vietnam using time series data from 1990-2023. The analytical tool used is the Vector Error Correction Model (VECM). The results indicate that, in both the short and long term, the FDI variable has a positive impact on economic growth in Indonesia and Vietnam. The Human Development Index (HDI) variable has a negative impact on the short- and long-term economic growth of Indonesia and Vietnam. The Emissions variable has a positive influence on the economic growth of Indonesia and Vietnam in the short and long term.

References:

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Keywords:

FDI, HDI, Emissions, Economic Growth.