Analysis of the Impact of Climate Change on Economic Growth, Financial Development, and Investment — Evidence from the ASEAN Region

Abstract

By using the ASEAN region as a case study, the research attempts to examine how climate change has an impact on financial development, foreign direct investment, and economic growth. ASEAN region is considered among the highest growing region across the world hence this study assesses the climate change consequences by taking into consideration the growth of region. This study conducted an empirical test using regression and focuses on the five nations with the greatest economies in the ASEAN region. These countries are Singapore, Malaysia, Thailand, the Philippines, and Indonesia, and they cover the years 2000–2022. The study collects data from the World Bank. This study used five independent variables while taking one climate change variable (CO2 emission) as independent variable. This study used the data in the panel format and after reviewing multiple literature the hypothesis could be tested. The result states that climate change has had a mixed impact on economic growth, performance, and investment.