The Impact of International Tourism on Economic Growth and Carbon Dioxide Emission in Asean Five Country

The purpose of this paper is the international tourism have impact on economic growth and carbon dioxide (CO2) emissionsin ASEAN Five (Indonesia, Malaysia, Philippines, Thailand, Singapore) or not. There are increase in tourism receipts, GDP, and FDI as well as CO2 emissions approximately 9%, 5%, 4% and 26% respectively. They are always increasing, but is there any relation between international tourism, GDP and carbon dioxide (CO2). This research employs data from 1995 to 2018 to examine long-run equilibrium relationships between tourism, CO2, economic growth and foreign direct investment (FDI). Panel analysis with unit root and cointegration test approachis utilized. This paper found that there is a long-term equilibrium relationships between each variable.The tourism receipt, FDI and CO2 emissions affect economic growth positively and statistically significant. In addition, economic growth affect CO2 emissions while tourism does not affect CO2 and FDI indicates a negative relationship on CO2 emissions. Finally, the paper reveals that international tourism receipt affect economic growth but does not affect CO2.


Introduction
The growth of the tourism sector impacts employment, foreign exchange earnings, infrastructure facilities expansion, capital investment, socio-economic growth, and increased contribution to GDP, and so on, Dayananda and Leelavathi (2016). With a tropical climate, ASEAN has the opportunity to protect the wealth of natural resources that are abundant in the oceans and land. ASEAN is also known as a Southeast Asian country with various cultures, ancestral heritage, and traditional beliefs that are still being lived up to today. The part that can be obtained is used to attract tourists to take a vacation trip to Southeast Asia.

A R T I C L E I N F O A B S T R A C T
The purpose of this paper is the international tourism have impact on economic growth and carbon dioxide (CO2) emissionsin ASEAN Five (Indonesia, Malaysia, Philippines, Thailand, Singapore) or not. There are increase in tourism receipts, GDP, and FDI as well as CO2 emissions approximately 9%, 5%, 4% and 26% respectively. They are always increasing, but is there any relation between international tourism, GDP and carbon dioxide (CO2). This research employs data from 1995 to 2018 to examine long-run equilibrium relationships between tourism, CO2, economic growth and foreign direct investment (FDI). Panel analysis with unit root and cointegration test approachis utilized. This paper found that there is a long-term equilibrium relationships between each variable.The tourism receipt, FDI and CO2 emissions affect economic growth positively and statistically significant. In addition, economic growth affect CO2 emissions while tourism does not affect CO2 and FDI indicates a negative relationship on CO2 emissions. Finally, the paper reveals that international tourism receipt affect economic growth but does not affect CO2. 10.12928/optimum.v10i2.15012 Global Destination Cities Index: MasterCard 2015 reported that Bangkok, Singapore, and Kuala Lumpur became the world's top 20 destinations based on the Overnight Visitor Arrival Expenditure per City Resident in 2015. Bangkok, the capital of Thailand, reached $ 1,072, Singapore, the capital of Singapore, reached $ 2,639, and Kuala Lumpur, as the capital city of Malaysia, is $ 1,933. Besides, these three cities are also the ten best destinations in Asia / Pacific. The growth of foreign tourists is faster and more constant than the growth in real-world GDP. The existence of a significant tourism demand can stimulate the local economy as a domestic economy. Especially by providing services through goods and services and travel using air transportation can provide high business opportunities.
ASEAN formed the ASEAN Tourism Forum (ATF) to promote member-owned tourism, strengthen cooperation between the tourism industry, and as a forum for exchanging ideas to build the tourism industry together. ASEAN also established the ASEAN Sustainable Tourism Awards (ASTA) program. Award for the best rural and urban tourism products in ASEAN whose benefits are for their purposes. ASTA is a promotional medium to introduce regional tourism, small cities, districts, and villages. This objective serves to ensure the social, cultural, and environmental sustainability of tourism. This information has a relationship with economic growth and tourism development because tourism is part of the sector used to increase economic growth, employment opportunities, and sources of income. Indonesia has also contributed to increasing the tourism sector to increase its foreign tourism exchange by accelerating infrastructure projects and adding transportation to facilitate access to locations.
Tourism is one of the contributors to local revenue that can help develop a region or country. Not only have a positive effect, based on observations, tourism can also harm the environment. Based on observations, the impact of this environment can be in increased air pollution, CO2 emissions, or other environments that cause deterioration, floods, landslides, and blockage of waterways cause inundation and disease. Borhan et al. (2012) explained that pollution alone could reduce human capital, labor productivity, and productivity. Paramitha (2016) stated that it is related to CO2. CO2 requires energy directly like fossil fuels or indirectly from electricity generated from coal, natural gas, or oil. Tourism is estimated to account for 5% of global CO2 emissions, and the UNWTO is warning each country to move towards a genuinely green tourism economy where economic growth is wholly separated from environmental or cultural degradation. In ASEAN itself, the relationship between CO2 and economic growth is related to the Kuznets environmental curve.

Previous Research
Tourism, Economic Growth, and CO2 Damanik and Weber (2006) consider tourism as an activity carried out in a different location from residence to release routine activities or simply look for a new atmosphere that is different from the activities every day. Pendit (2002) Gössling et al. (2005)  emissions also occured in Indonesia. This is due to the consumption of energy through transportation and the economy. This statement was rejected by Scott et al. (2010). The research reported that the tourism sector could become the main actor as a global source of greenhouse gases in the future. The research also offered policy changes and hope that air transportation can reduce CO2 emissions. Sustainable tourism, Weaver (2011) introduces low-carbon economy tourists, limiting the number of flights can be used as a new policy to keep CO2 under control and decrease.

Tourism on CO2 emissions
Hypothesis 1, increasing tourism revenue in ASEAN-5 affects economic growth and CO2 emissions.

Economic Growth, Emisi CO2
A study by Alam (2014)  with GDP per capita in Bangladesh. The research also examined the relationship between economic growth and CO2. The results showed that the increasing CO2 resulted in a decrease in growth. Structural changes are needed to assess the increase in economic growth, such as environmental awareness and policies, global cooperation, without which growth will lead to a downward trend. This statement is supported by Panayotou (1993). Research by Peng et al. (2015) supported this relationship, which states that there is a unidirectional causality between GDP and CO2 emissions. Chandran and Tang (2013), using multivariate cointegration and granger causality, give results if economic growth plays a more significant role in contributing to CO2 emissions in ASEAN.

FDI, Economic Growth and CO2 Emission
Empirical research by Alfaro et al. (2004)  Singapore is insignificant or has no effect.
Hypothesis 3, an increase in FDI affects economic growth, but an increase in FDI does not necessarily show an effect and increase CO2 emissions.

Data And Method
This study is quantitative research. This research utilizes secondary data from 1995 to 2018 with five countries as the pioneers of the establishment of ASEAN, namely Indonesia, Malaysia, Philippines, Thailand, and Singapore.
Normalization and transformation: Normalization of data is needed because there are different units in one of the variables to be processed. CO2 emissions, which are units of metric tons, must first be converted into US $ units of measurement to be the same as other variables. Thus the log transformation is required to reduce the possibility of dynamic distortion from the serial nature. Log transformation was also carried out in order to get better results.
Correlation: Table 1 is the result of the Pearson panel series correlation. Correlation is done to see how closely the relationship between variables is. The correlations between the variables GDP, CO2, Tourism, and FDI are all significant. GDP is positively related to CO2, Tourism, and FDI. The GDP correlation to CO2 is very strong (p-value> 0.5-0.75). CO2 is positively correlated with tourism. However, FDI has a negative correlation.

Unit Root Test
The unit root test is employed to determine the data stationarity. Before running the unit root test panel data, it must consider asymptotic action on time series in T dimension  Maddala and Wu (1999) in Lee and Brahmasrene (2013) explained that the fisher-type panel cointegration test using the Johansen (1991) test is more efficient than Englee-Granger. This is because there is a significant and broad maximum likelihood. The Johansen procedure for testing the cointegration relationship has a small sample of only the trace test and the maximum eigenvalue test. The two samples can be used simultaneously.   Vol. 11. No 1, March 2021 p. 1-11 The Impact of International Tourism… (Aulia Hapsari Juwita et al) 7

Result and Discussion
This chapter focuses on the results. Table 2 results from the unit root test using either Levin; Breitung; I'm-pesar-shin; fisher, ADF; and Fisher, PP. The results obtained from the unit root test at the 1st difference are that each variable does not contain a unit root test. In other words, the data is stationary. It is proven by the probability of the 1st difference for each variable <0.01. Overall the assumption results were obtained from the unit root test at normal asymptotics.   The cointegration results indicate that these variables have a long-run relationship. The results obtained support the fifth hypothesis. The fifth hypothesis stated a long-run relationship between tourism receipts, GDP, CO2 emissions, and FDI.
Hausman-test is performed to compare and differentiate fixed effect and random effect models. The Housman test uses the chi-square value. Thus, the decision to choose the panel data method can be determined statistically. The results showed that both models, namely GDP (Chi-square = 38,740) and CO2 emissions (Chi-square statistic = 46,886) each have a probability value of 0.000 <0.05. Thus, H1 is accepted, which means that the fixed effect is preferable.   Vol. 11. No 1, March 2021 p. 1-11 The Impact of International Tourism… (Aulia Hapsari Juwita et al) 9 Hypothesis 2: The results showed that the economic growth in these five countries strongly influences CO2. If there is a 1% increase in economic growth, there will be a 37% increase in CO2 emissions. Behind the increase in economic growth from an increase in tourism revenue, a 1% increase in economic growth led to an increase in CO2 emissions by 37%. These results prove that economic growth stimulates an increase in CO2 emissions.
Economic growth is associated with increasing CO2 emissions, increased production due to high levels of human consumption, and low human awareness of the environment. Illegal deforestation makes trees emit O2 to the maximum. Waste disposal and infrastructure development that is still low on environmentally friendly power can increase CO2 emissions.
Hypothesis 3: The results show that FDI in ASEAN 5 countries positively affects economic growth but harms CO2. A 1% increase in FDI will increase economic growth by 1.20E-9% and decrease CO2 emissions by 7.03E-10%. 1% increase in FDI will increase economic growth by 1.20E-9% and reduce CO2 emissions by 7.03E-10%. FDI through foreign capital can contribute to increasing the economic growth of a country. ASEAN also places investment as the main factor used in the ASEAN economy.

Conclussion And Suggestion
This study revealed a long-run equilibrium relationship between tourism, CO2 emission, economic growth, and Foreign Direct Investment (FDI). The results showed that tourism, FDI, and CO2 affect economic growth positively significant. Economic growth showed a positive impact on CO2 emission while tourism does not affect CO2. Furthermore, FDI showed that there is a negative impact on CO2 emission.
This study will assist policymakers always to pay attention to the environment, especially air pollution, and make environmentally friendly policies to increase economic growth. Based on the results, the researcher also represents new findings if there is no link between international tourism revenues and CO2 emissions.