Palm Oil Export and Environmental Pollution in Malaysia: Evidence from ARDL Approach

Norashida Othman; Rabiatul Munirah Alpandi; Norrina Din; Zineb Abdulaker Benalywa

doi:10.21834/e-bpj.v8i26.5109

Authors

Norashida Othman Department of Economics and Financial Studies Faculty of Business and Management, Universiti Teknologi MARA (UiTM), Selangor, Malaysia
Rabiatul Munirah Alpandi Department of Economics and Financial Studies Faculty of Business and Management, Universiti Teknologi MARA (UiTM), Selangor, Malaysia
Norrina Din Foodservice Department, Faculty of Hotel and Tourism Management, Universiti Teknologi MARA, Permatang Pauh Campus, Pulau Pinang, Malaysia
Zineb Abdulaker Benalywa Department of Agricultural Economics, Faculty of Agriculture,University of Tripoli, Libya

DOI:

https://doi.org/10.21834/e-bpj.v8i26.5109

Keywords:

Palm Oil Export, Agricultural Methane Emissions, ARDL Bounds Testing

Abstract

This paper seeks to identify the effect of palm oil export on environmental pollutants. The National Income (GDP) and Foreign Direct Investment (FDI) were also included in the model as control variables. This study employs the auto-regressive distribution lag (ARDL) econometric technique, and the analysis is based on time series data from 1990 to 2020. The bound F-test and Johansen cointegration tests confirmed that palm oil export significantly accelerates environmental pollution. However, the results from the short-run estimate explore that all the variables are insignificant. This study concludes that Malaysia should control international trade activities to deal with pollution problems.

Author Biography

Norashida Othman, Department of Economics and Financial Studies Faculty of Business and Management, Universiti Teknologi MARA (UiTM), Selangor, Malaysia

Dr. Norashida Othman is a senior lecturer from Universiti Teknologi MARA, Puncak Alam campus. She pursued her Degree in Economics at Universiti Kebangsaan Malaysia and then continued her Master Degree, specializing in Economics Development at Universiti Kebangsaan Malaysia. She received the scholarship to pursue her PhD in International Economics at Universiti Putra Malaysia. She has a very deep interest in research and actively involved in various research grants as well as consulting projects. Among its past consultancy project agencies include the Malaysian Construction Industry Development Board (CIDB), Institut Darul Ridzuan (IDR), the East Coast Economic Region Development Council (ECER), the Subang Jaya City Council (MPSJ) and Majlis Pembangunan Bumiputera, Pulau Pinang.

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