The Impact of Foreign Direct Investment, Urban Population and Renewable Energy on Economic Growth in the ASEAN Region

The Influence of Job Rotation and Work Environment on Employee Performance at PT Pegadaian Branch Offices in The Palembang Area
June 2, 2025
The Impact of Foreign Direct Investment, Financial Development, and Trade Opennes on Economic Growth Emerging Markets
June 2, 2025

The Impact of Foreign Direct Investment, Urban Population and Renewable Energy on Economic Growth in the ASEAN Region

ABSTRACT: This study aims to analyze the effect of foreign direct investment (FDI), urban population, and renewable energy on economic growth in the ASEAN region during the period 1993–2022. The method used is Autoregressive Distributed Lag (ARDL) to identify the short-term and long-term effects between variables. The estimation results show that the three variables FDI, urban population, and renewable energy have a positive and significant effect on economic growth, both in the short and long term. FDI contributes through increased capital and technology transfer, urbanization encourages efficiency and economic expansion in urban areas, while renewable energy is an important driver of sustainable economic growth. The significant and negative Error Correction Term (ECT) value indicates that the model has a strong ability to adjust to short-term imbalances. This finding emphasizes the importance of integrated development strategies and policies between investment promotion, urban population management, and clean energy transitions, especially in efforts to encourage inclusive and environmentally friendly growth. in encouraging economic growth in the ASEAN region.

KEYWORDSForeign Direct Investment, Urban Population, Renewable Energy, Economic Growth

error: Content is protected !!