Globalisation and its effect on pollution in Malaysia: the role of Trans-Pacific Partnership (TPP) agreement

The main objective of this study is to investigate the influence of the globalisation (Trans-Pacific Partnership (TPP) agreement in particular) on air pollution in Malaysia. To achieve this goal, the Autoregressive Distributed Lag (ARDL) model, Johansen cointegration test and fully modified ordinary least square (FMOLS) methods are utilised. CO2 emission is used as an indicator of pollution while GDP per capita and urbanisation serve as its other determinants. In addition, this study uses Malaysia's total trade with 10 TPP members as an indicator of globalisation and analyse its effect on CO2 emission in Malaysia. The outcome of this research shows that the variables are cointegrated. Additionally, GDP per capita, urbanisation and trade between Malaysia and its 10 TPP partners have a positive impact on CO2 emissions in general. Based on the outcome of this research, important policy implications are provided for the investigated country.