Impacts of ecosystem vitality on ASEAN's agricultural exports: A System Generalized Method of Moments approach

This study examined the impact of the Association of Southeast Asian Nations (ASEAN)'s ecosystem vitality (EV) on its agricultural exports to the rest of the world. Using a sample of the six major ASEAN countries (ASEAN-6) (including Indonesia, Malaysia, Philippines, Singapore, Thailand, and Vietnam) and their 72 trading partners for the period 2007-2016, we found robust evidence of a positive relationship between the quality of EV and the volume of agricultural exports. At the sectoral level, the quality of EV had the most substantial effects on the ASEAN's exports of SITC-0 (food and live animals) and exerted the least impact on the ASEAN's exports of SITC-2 (crude materials, inedible, except fuels). This empirical evidence implies that natural resource-intensive products are more sensitive to the quality of EV. At the country level, EV has the most potent effect on the ASEAN's agricultural exports to high-income countries and the least impact on the ASEAN's agricultural exports to low-income countries. To promote agricultural exports, especially to high-income countries, our empirical results suggest that ASEAN countries need to build specific and effective plans for conservation of environment and management of sustainable ecosystems.

Automated summary

The study found a positive relationship between the ASEAN's ecosystem vitality (EV) and its agricultural exports, especially for SITC-0 (food and live animals). EV has a greater impact on the ASEAN's agricultural exports to high-income countries and a lesser impact on exports to low-income countries. Therefore, ASEAN countries need to develop specific and effective plans for environmental conservation and sustainable ecosystem management to promote agricultural exports, particularly to high-income countries.