INVESTIGATING THE ROLE OF STATE CAPACITY IN PROMOTING TECHNOLOGICAL INNOVATION AND ENVIRONMENTAL SUSTAINABILITY IN ASEAN STATES

Abstract

This study examines the relationship between state capacity, technological innovation, and
environmental sustainability in two ASEAN member states, Vietnam and Singapore, from 2000 to 2020. The
study focuses on the impact of impartial administration, rule of law, and technological innovation on achieving
environmental sustainability. The Autoregressive Distributed Lag model and Granger causality analysis were
used to analyze the existence and causal effect between the variables. The results indicate a negative
association between impartial administration, technological innovation, and environmental sustainability in
the long run. However, the Granger causality analysis demonstrates a causality effect running from impartial
administration and technological innovation to environmental sustainability for Singapore. The study
highlights the importance of state capacity in promoting innovation in both the public and private sectors to
achieve environmental sustainability