Impact of Trade in Environmentally Preferable Products and Clean Technologies on Economic Growth and Environmental Quality: Empirical Analysis in Developing Countries and in OECD Countries

2019 ◽  
Author(s):  
Selima Ben Zineb
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Empirical Analysis ◽  
Environmental Quality ◽  
Oecd Countries ◽  
Clean Technologies ◽  
Environmentally Preferable

scholarly journals Foreign finance, economic growth and CO2 emissions Nexus in OECD countries

2019 ◽  
Vol 12 (2) ◽  
pp. 161-181 ◽  
Author(s):  
Faris Alshubiri ◽  
Mohamed Elheddad
Keyword(s):  
Economic Growth ◽  
Linear Relationship ◽  
Environmental Quality ◽  
Foreign Investment ◽  
Fixed Effects ◽  
Oecd Countries ◽  
Content Type ◽  
Non Linear ◽  
The Relationship ◽  
Threshold Point

Purpose This study aims to examine the relationship between foreign finance, economic growth and CO2 to investigate if the environmental Kuznets curve (EKC) exists as an empirical evidence in 32 selected Organization for Economic Co-operation and Development (OECD) countries. Design/methodology/approach This study used quantitative analysis to test two main hypotheses: H1 is the U-shape relationship between foreign finance and environment, and H2 is the N-shaped association between economic growth and environment. In doing so, this study used panel data techniques. The panel set contained 32 countries over the period from 1990 to 2015, with 27 observations for each country. This study applied a panel OLS estimator via fixed-effects control to address heterogeneity and mitigate endogeneity. Generalized method of moments (GMM) with fixed effects-instrumental variables (FE-IV) and diagnostic tests were also used. Findings The results showed that foreign finance and environmental quality have an inverted U-shaped association. The three proxies’ foreign investment, foreign assets and remittance in the first stages contribute significantly to CO2 emissions, but after the threshold point is reached, these proxies become “environmentally friendly” by their contribution to reducing CO2 emissions. Also, a non-linear relationship denotes that foreign investment in OECD countries enhances the importance, as a proxy of foreign finance has greater environmental quality than foreign assets. Additionally, empirical results show that remittances received is linked to the highest polluted levels until a threshold point is reached, at which point it then helps reduce CO2 emissions. The GMM and FE-IV results provide robust evidence on inverse U-shaped relationship, while the N-shaped relationship explains that economic growth produces more CO2 emissions at the first phase of growth, but the quadratic term confirms this effect is negative after a specific level of GDP is reached. Then, this economic growth makes the environment deteriorate. These results are robust even after controlling for the omitted variable issue. The IV-FE results indicate an N-shaped relationship in the OECD countries. Practical implications Most studies have used different economic indicators as proxies to show the effects of these indicators on the environment, but they are flawed and outdated regarding the large social challenges facing contemporary, socio-financial economic systems. To overcome these disadvantages, the social, institutional and environmental aspects of economic development should also be considered. Hence, this study aims to explain this issue as a relationship with several proxies in regard to environmental, foreign finance and economic aspects. Originality/value This paper uses updated data sets for analyzing the relationship between foreign finance and economic growth as a new proxy for pollution. Also, this study simulates the financial and environmental future to show their effect on investments in different OECD countries. While this study enhances the literature by establishing an innovative control during analysis, this will increase to add value. This study is among the few studies that empirically investigate the non-linear relationship between finance and environmental degradation.

ENTREPRENEURSHIP AND ECONOMIC GROWTH: AN EMPIRICAL ANALYSIS

2007 ◽  
Vol 12 (01) ◽  
pp. 3-29 ◽  
Author(s):  
HÉCTOR SALGADO-BANDA
Keyword(s):  
Economic Growth ◽  
Empirical Analysis ◽  
Positive Relationship ◽  
Oecd Countries ◽  
Alternative Measure ◽  
Patent Data ◽  
Self Employment ◽  
The Impact

This study examines the impact of entrepreneurship on economic growth by using a new variable based on patent data to proxy for productive entrepreneurship. Data on self-employment is used as an alternative proxy. The study considers 22 OECD countries and finds a positive relationship between the proposed measure of productive entrepreneurship — degree of innovativeness of different nations — and economic growth, while the alternative measure, based on self-employment, appears to be negatively correlated with economic growth. A battery of econometric specifications and techniques backs the findings.

Impact of Trade in Class-A Environmental Products on Economic Growth and Environmental Quality

2020 ◽  
pp. 183-208
Author(s):  
Sélima Ben Zineb
Keyword(s):  
Developing Countries ◽  
Environmental Policy ◽  
Least Squares ◽  
Environmental Quality ◽  
Indirect Effects ◽  
Least Squares Regression ◽  
Environmental Goods ◽  
Class A ◽  
Commercial Activities ◽  
Clean Technologies

Openness to international trade enables several countries to access different markets. Similarly, the orientation of industrial productions towards ecological goods reinforces commercial activities and contributes to the improvement of environmental quality. The aim of this chapter is to estimate the indirect and the direct effects of trade in what the authors call “Class A” environmental goods on air quality for a number of developing during the period 2005-2015 (through environmental policy and income). Empirically, the study relies on the two-stage least squares (2SLS) and three-stage least squares regression analyses. For end-of-pipe (EOP) products in developing countries, neither direct nor indirect effects are identified on the reduction of pollution. For clean technologies and products, we can observe a global positive effect resulting from two positive indirect effects via environmental policy and income. In developing countries, it seems that trade in clean technologies and products (CTP) and in the OA product list generates an intensification of pollution through an increase in wealth and the adoption of a strict environmental policy (based on taxation).

Social fragmentation and economic growth: evidence from developing countries

2010 ◽  
Vol 7 (1) ◽  
pp. 77-104 ◽  
Author(s):  
TADE O. OKEDIJI
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Empirical Analysis ◽  
Ethnic Diversity ◽  
Diversity Index ◽  
Direct Effects ◽  
Composite Measure ◽  
Macroeconomic Variables ◽  
Social Fragmentation ◽  
The Social

Abstract:This paper proposes a composite measure of ethnic fragmentation, the Social Diversity Index (SDI) to capture inherent multidimensionality not captured in the prevalent Ethno-Linguistic Fractionalization Index (ELF). The SDI more accurately demonstrates the direct effects of hidden diversity values and the extent and corresponding costs of ethnic diversity on economic growth. A comparative empirical analysis of the results from 132 countries employing the SDI and the ELF Index, suggests that the SDI is more robustly correlated with growth, and does a moderately better job of explaining the effect of exogenous static ethnic diversity. However, the empirical effects of ethnic diversity on growth tend to diminish with the inclusion of additional macroeconomic variables.

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