The impact of climate change, inflation, and foreign direct investment on income inequality in ASEAN-4
DOI:
10.62941/irefi.v2i1.150Issue:
Vol. 2 No. 1 (2025): In ProgressKeywords:
Income inequality, climate change, CO2 emissions, inflation, foreign direct investmentResearch Article
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Abstract
This study examines the effects of climate change, inflation, and foreign direct investment (FDI) on income inequality in ASEAN-4 countries (Indonesia, Thailand, Malaysia, and the Philippines), with economic growth and corruption control as moderating variables. Utilizing annual data from 2002 to 2023 sourced from the World Bank, this research employs panel regression analysis to assess the relationships among variables. The findings provide empirical evidence that climate change and FDI have a positive impact on income inequality, whereas inflation has a negative effect. These results highlight the urgency of addressing inequality in the region. Mitigating climate change is essential to reduce the risks associated with rising CO₂ emissions. Governments must also ensure stable inflation to help narrow income gaps. Furthermore, policies promoting the equitable distribution of FDI across regions are necessary to enhance labor absorption, particularly among low-skilled workers.
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Author Biographies
Riska Zahara, Department of Economics, Faculty of Economics and Business, Universitas Syiah Kuala, Banda Aceh, Indonesia
M. Shabri Abd. Madjid, Department of Economics, Faculty of Economics and Business, Universitas Syiah Kuala, Banda Aceh, Indonesia
Muhammad Abrar, Department of Economics, Faculty of Economics and Business, Universitas Syiah Kuala, Banda Aceh, Indonesia
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Copyright (c) 2025 Riska Zahara, M. Shabri Abd. Madjid, Muhammad Abrar
This work is licensed under a Creative Commons Attribution 4.0 International License.
