Does economy factors affect environmental performance? A study on Malaysia and Indonesia / Ku Nayli Amani Ku Abdul Aziz

Association of Southeast Asian Nation (ASEAN) members have been attempting to adopt several environments focus target for the last decades. Environmental performance in this research paper has been specified as C02 emissions by each country, Malaysia and Indonesia respectively. The justification for that variable used is because, C02 emissions contribute the highest percentage to the global warming. This research has gathered data set on foreign direct investment (FDI), economic growth (EG), population density (PD), export (Ex) and import (1m) from Malaysia and Indonesia between 1990 to 2019, a time frame of 30 years. The spike in environmental performance in Malaysia and Indonesia has trigger a great conccrn on the climate emergency by the people. The purpose of this research paper is to identify the main determinants that could be the triggering factors for its increase in the environmental performance figure. Additionally, the performance of its environment has drastically worsened over the decade. With the on-going development to enhance the county economic growth in both Malaysia and Indonesia, more natural disaster start occurring in the past 10 years. Thus, explain the objective of this research to identify which determinants causing the spike in environmental performance of Malaysia and Indonesia. Based on finding, foreign direct investment does has a close relationship towards environmental performance as well as the increase in economic growth shows a positive significant value. This suggest that, in order to control the environmental performance without sacrificing the economic and foreign attraction in both countries, the strong policy on C02 release in the air need to be consider and endorsed. Additionally, the number of population has also shown an impact on environmental performance.