Effect of Environment Degradation on Economic Growth (Evidence from 32 Developing Countries)

Ahmadian, Majid; Abdoli, Ghahreman; Jebel Ameli, Farkhondeh; Shabankhah, Mahmood; Khorasani, Seyed Adel

Document Type : ORIGINAL ARTICLE

Authors

¹ Professor of Economics, Tehran University, Tehran, Iran.

² Associate Professor, Tehran University, Tehran, Iran

³ Ph.D. Student of Economics, Tehran University, Tehran, Iran

⁴ Ph.D. Student of Economics, Tehran University, Tehran, Iran.

Abstract

In recent decades environment has been an important issue more than any other time. Hence, this study investigated the relationship between economic growth and environmental quality indicator in selected developing countries (including 32 country) for the period 2002-2013 by using a dynamic panel method based on generalized method of moments (GMM). The results show that there is a positive and significant relationship between economics growth and degradation of environment (environmental quality degradation), which means that an increase in environment degradation indicator increased the economic growth. This case is because of the rate of resource depletion begins to exceed the rate of resource regeneration and Pollution Haven Hypothesis in the studied countries. The results of Sargen and Arellano-bond autocorrelation test also respectively show, there is correlation between tools and component disruption and model does not have autocorrelation in the first order difference. Meanwhile results of Toda and Yamamoto Causality test show the existence of unilateral relationship from the Environment Degradation indicator to Economic Growth.

Keywords

20.1001.1.22285954.1396.7.27.1.3

Main Subjects

Quality of Environment

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Economic Growth and Development Research

Effect of Environment Degradation on Economic Growth (Evidence from 32 Developing Countries)

References

References

Volume 7, Issue 27 - Serial Number 27
July 2017
Pages 17-28

Effect of Environment Degradation on Economic Growth (Evidence from 32 Developing Countries)

References

References

Volume 7, Issue 27 - Serial Number 27July 2017Pages 17-28

Volume 7, Issue 27 - Serial Number 27
July 2017
Pages 17-28