Impact of Investments and Renewable Energy Consumption on the Economic Growth of ASEAN-5

Abstract

This study intends to scrutinize the impact of investments (both foreign and direct), and energy demand on economic growth for ASEAN-5 countries. Pooled ordinary least squares regression (POLS), fixed and random effect models were used in the study, which covered yearly panel data from 1999 - 2014 to estimate the relationship between investment, REC, and economic growth. The study employs Levin–Lin–Chu, Dickey-Fuller, and Fisher PP tests to examine the data stationarity of the variables. Furthermore, the generalized method of moments (GMM) estimates the economic parameters. The pooled ordinary least squares were also employed to evaluate the impact. The findings indicate a significant and positive relationship between investment and renewable energy in ASEAN-5 countries. The study's findings showed a significant positive correlation between GDP and renewable energy consumption.