The impact of climate change, inflation, and foreign direct investment on income inequality in ASEAN-4

This study discusses the effects of climate change, inflation, and FDI on income inequality with economic growth and corruption control as moderating variables in ASEAN-4 (Indonesia, Thailand, Malaysia, and the Philippines). This study uses annual data for the period 2002-2023 sourced from the World Bank and analyzed using panel regression analysis. The study found empirical evidence that specifically climate change and FDI have a positive effect on income inequality while inflation has a negative effect on income inequality in ASEAN 4. Therefore, immediate action is needed to address this problem. Therefore, it is important to mitigate climate change in reducing the risk of increasing CO2 emissions. The government needs to control the inflation rate to remain stable so that it can reduce income inequality. In addition, policies are needed that encourage FDI flows evenly to various regions, so that FDI can open up opportunities for labor absorption, especially for people with low skills.