Convergence of per capita ecological footprint among the ASEAN-5 countries: Evidence from a non-linear panel unit root test

Abstract

This study aims to investigate the convergence of the per capita ecological footprint among the Association of Southeast Asian Nations (ASEAN-5) countries by using panel data for the period 1961 to 2016. To this end, the two-regime threshold autoregressive (TAR) panel unit root test is performed. First, we conclude that the ecological footprint of ASEAN-5 countries is nonlinear. Then, we determine that the transition country between the two regimes is Vietnam. Our empirical results reveal that divergence exists in the second regime and absolute convergence in the first. The second regime constitutes approximately 80% of the sample. Consequently, this result provides strong support for the absolute convergence of the per capita ecological footprint in Indonesia, Malaysia, the Philippines, Thailand and Vietnam. Therefore, common policies should be implemented to prevent environmental degradation in the ASEAN-5 countries.