The implication of technological innovation and tourism development on FDI-growth-environment nexus in Association of Southeast Asian countries: a simultaneity modeling analysis

This study examines the causal link between foreign direct investment inflows, ecological footprint, and economic growth using panel estimators from five Southeast Asian countries from 1990 to 2017. Results show that technological innovation, ecological footprint, and FDI inflows all have a positive impact on economic growth. Technological innovation and economic growth are both significant and positive determinants of FDI inflows. While FDI inflows, tourism, and the effects of economic growth are all positive factors, they all contribute to Southeast Asia's ecological footprint. Moreover, we have found two-way causal link between ecological footprint and tourism, technological innovation, and ecological footprint. The results also revealed a one-way causal relationship between FDI inflows, industrialization, technological innovation, and tourist arrivals. Therefore, ASEAN countries are encouraged to foster environmental awareness among travel service providers by incorporating environmental concerns into their operations and activities, such as green restaurants, green hotels, green destinations, and green transportation.