© Universiti Putra Malaysia Press 2018First Print 2018

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Perpustakaan Negara Malaysia Cataloguing-in-Publication

EMPIRICAL ESSAYS ON TRADE, ECONOMIC DEVELOPMENT AND ENVIRONMENTAL ISSUES / Editors: Azali Mohamed Muzafar Shah Habibullah. ISBN 978-967-344-851-7 1. Economics. 2. Electronic books. 3. Government publications--Malaysia. I. Azali Mohamed. II. Muzafar Shah Habibullah. 330.

URL://www.econ.upm.edu.my/penerbitan

Cover design: Md Fairus AhmadType face: Times New Roman PSType Size: 11/14.5

© Penerbit Universiti Putra Malaysia, 2018 URL://www.econ.upm.edu.my/penerbitanNot to be reproduced or distributed

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Contents

Preface viiAcknowledgements ix

CHAPTER 1 Is Our Macroeconomic Policy Right? A Simple Test 1 M. Azali, Muzafar Shah Habibullah and A.H. Baharom

CHAPTER 2 Income Convergence in ASEAN5+3 Economies: Evidence from the Nonlinear Unit Root Test 16 A.M. Dayang-Affizzah, Muzafar Shah Habibullah, A.R. Rossazana and A.A.R. Dayang-Hummida

CHAPTER 3 Panel Error-Correction Evidence of Finance Causes Economic Growth in Selected African Countries 28 Salama Yusuf, M. Azali and Lee Chin

CHAPTER 4 Financial Sector Convergence in ASEAN-6 Economies 42 Juliana Ibrahim, Muzafar Shah Habibullah and Shivee Ranjanee Kaliappan

CHAPTER 5 Trade Openness and Economic Growth in Malaysia 60 A.H. Baharom, M. Azali and Muzafar Shah Habibullah

CHAPTER 6 Determinants of CO2 Emissions in the Asia and the Pacific Region 73 Siti Ayu Jalil, Muzafar Shah Habibullah and Normaz Wana Ismail

CHAPTER 7 Does Ethnic Diversity Causes Civil War? 89 Thian-Hee Yiew and Muzafar Shah Habibullah

© Penerbit Universiti Putra Malaysia, 2018 URL://www.econ.upm.edu.my/penerbitanNot to be reproduced or distributed

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CHAPTER 8 Good Governance and Deforestation in Malaysia 101 Badariah Haji Din, Muzafar Shah Habibullah, M. Yusof-Saari and Siow-Hooi Tan

List of Contributors 115 Index 117

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Preface

This book Empirical Essays on Trade, Economic Development and Environmental Issues compiled eight empirical essays that feature researches on applied economics. These essays were the results of the Department of Economics, Faculty of Economics and Management, Universiti Putra Malaysia (UPM) effort in encouraging and spearheading research collaboration between staffs in the department and with their respective graduate students as well as other co-researchers in other universities.

The chapters in this book are relevant to public readers, undergraduate and postgraduate students. The topics covered, namely, macroeconomic policy, finance and growth, economic convergence, trade openness, carbon dioxide emissions, war and conflicts and deforestation. Most of the papers utilised recent econometric methods in data analysis and empirical investigations.

We would like to express our deepest appreciation to the Research Management Centre (RMC), Universiti Putra Malaysia for providing us the financial support in publishing this book. We also thank all contributors and to the Dean of the Faculty of Economics and Management for their commitment in making this research book published.

M. AzaliMuzafar Shah HabibullahSerdang, 2018

© Penerbit Universiti Putra Malaysia, 2018 URL://www.econ.upm.edu.my/penerbitanNot to be reproduced or distributed

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