This study seeks to ascertain whether there is an unbalanced link between CO2 emissions, foreign direct investment, and economic growth in Malaysia over a 40-year timeframe between 1980 and 2019. We investigated the asymmetric relationship , using non-linear autoregressive distributed lag (NARDL) technique. The findings showed a noteworthy asymmetry between FDI, CO2 emissions, and GDP in Malaysia. The long-term and short-term effects of negative FDI on GDP are both equivalent to 0.028 and 0.021, respectively. This suggests that, compared to short-term fluctuations, long-term negative FDI adjustments have a considerably more negative impact on economic growth. The coefficient of positive (CO2+) and negative (CO2-) changes in economic growth is equal to 0.086 and - 0.152, respectively. It indicates that positive changes in CO2 emissions have stronger effects in the long run than negative shocks. Considering an asymmetric association between these two variables in the short and long term, Malaysian policymakers must comprehend the dynamic relationship between FDI, CO2 emissions, and GDP to plan appropriate economic and environmental policies that will support sustainable economic development and ensure a safer environment.
The current study aims to examine the symmetric and asymmetric effects of climate change (CC) on rice productivity (RP) in Malaysia. The Autoregressive-Distributed Lag (ARDL) and Non-linear Autoregressive Distributed Lag (NARDL) models were employed in this study. Time series data from 1980 to 2019 were collected from the World Bank and the Department of Statistics, Malaysia. The estimated results are also validated using Fully Modified Ordinary Least Squares (FMOLS), Dynamic Ordinary Least Squares (DOLS), and Canonical Cointegration Regression (CCR). The findings of symmetric ARDL show that rainfall and cultivated area have significant and advantageous effects on rice output. The NARDL-bound test outcomes display that climate change has an asymmetrical long-run impact on rice productivity. Climate change has had varying degrees of positive and negative impacts on rice productivity in Malaysia. Positive changes in temperature and rainfall have a substantial and destructive impact on RP. At the same time, negative variations in temperature and rainfall have a substantial and positive impact on rice production in the Malaysian agriculture sector. Changes in cultivated areas, both positive and negative, have a long-term optimistic impact on rice output. Additionally, we discovered that only temperature affects rice output in both directions. Malaysian policymakers must understand the symmetric and asymmetric effects of CC on RP and agricultural policies that will promote sustainable agricultural development and food security.