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Impact of Government Stability and Investment Profile on Forest Area: The Role of Natural Protected Areas

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  • Sha Qiao

    (School of Economics & Management, Beijing Forestry University, Beijing 100083, China)

  • Caihong Zhang

    (School of Economics & Management, Beijing Forestry University, Beijing 100083, China)

  • Lizeth Cuesta

    (Carrera de Economía and Centro de Investigaciones Sociales y Económicas, Universidad Nacional de Loja, Loja 110150, Ecuador)

  • Rafael Alvarado

    (Esai Business School, Universidad Espíritu Santo, Samborondon 091650, Ecuador)

  • Stefania Pinzón

    (Carrera de Economía and Centro de Investigaciones Sociales y Económicas, Universidad Nacional de Loja, Loja 110150, Ecuador)

  • Diana Bravo-Benavides

    (Departamento de Economía, Universidad Técnica Particular de Loja, Loja 110150, Ecuador)

Abstract

Forest area plays a fundamental role in air and water quality and directly impacts agricultural productivity. This research aims to examine the impact of government stability and investment profiles on forest cover in countries within the ASEAN region. Specifically, the research includes Brunei Darussalam, Indonesia, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam. In the research development, we examine the role which protected natural areas play in the conservation of forests. We employ second-generation cointegration methods of cross-section dependence and slope heterogeneity. The results suggest that forest cover has been significantly reduced in this region, while government stability and the investment profile have a volatile behavior. The second-generation cointegration test results suggest there is no long-term relationship between the three series. Likewise, the short- and long-term elasticities highlight the importance of environmental protection policies to conserve forests.

Suggested Citation

  • Sha Qiao & Caihong Zhang & Lizeth Cuesta & Rafael Alvarado & Stefania Pinzón & Diana Bravo-Benavides, 2022. "Impact of Government Stability and Investment Profile on Forest Area: The Role of Natural Protected Areas," Sustainability, MDPI, vol. 14(8), pages 1-20, April.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:8:p:4395-:d:788732
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    1. Huilin Li & Zuomin Wen, 2023. "A Market-Based Payment Study for Forest Water Purification Service in Loess Plateau of Yellow River Basin, China," Sustainability, MDPI, vol. 15(20), pages 1-16, October.

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