Empowering Malaysian tourism with clean energy, sustainable environment, and inward FDI: evidence from symmetric and asymmetric assessment

This study aims to assess the effects of clean energy, environmental sustainability, and inward FDI on tourism growth in Malaysia data spanning from 1990 to 2019. The study employs the Bayer-Hanck cointegration test, ARDL bound testing, nonlinear ARDL, Toda-Yamamoto causality, and Fourier TY causality test. Additionally, dynamic OLS, fully-modified OLS, and CCR are employed to ensure robust coefficient testing. The study's findings demonstrate a noteworthy and favorable correlation between the utilization of clean energy, the advancement of tourism, and the subsequent rise in inward foreign direct investment (FDI). Moreover, the NARDL model reveals the complex interplay between adopting clean energy, environmental sustainability, and tourism growth. The causality tests, such as Fourier TY, offer valuable insights into the direction and intensity of the identified causal relationships. The study's implications are diverse and complex. Firstly, it highlights the crucial significance of clean energy as a catalyst for Malaysia's sustainable tourism development. Furthermore, this research offers valuable insights for policymakers and industry stakeholders seeking to leverage the economic and environmental advantages of integrating clean energy. Finally, this study contributes to the growing body of literature on the interplay between clean energy, tourism, and inward foreign direct investment (FDI), establishing a solid basis for future research in comparable settings. In conclusion, this research contributes to the enhanced comprehension of the intricate relationship between clean energy, the expansion of tourism, and inward foreign direct investment (FDI) in Malaysia. The utilization of various methodologies provides a comprehensive viewpoint on the dynamic relationships, emphasizing the potential for promoting sustainable development while simultaneously achieving economic benefits.