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Paper Information

Journal:   JOURNAL OF ECONOMIC GROWTH AND DEVELOPMENT RESEARCH   SUMMER 2017 , Volume 7 , Number 27 ; Page(s) 17 To 28.
 
Paper: 

EFFECT OF ENVIRONMENT DEGRADATION ON ECONOMIC GROWTH (EVIDENCE FROM 32 DEVELOPING COUNTRIES)

 
 
Author(s):  AHMADIAN MAJID*, ABDOLI GHAHREMAN, JEBEL AMELI FARKHONDEH, SHABANKHAH MAHMOOD, KHORASANI SEYED ADEL
 
* 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.

 
Keyword(s): ENVIRONMENTAL DEGRADATION INDICATOR, ECONOMIC GROWTH, TODA AND YAMAMOTO CAUSALITY, DYNAMIC PANEL, SELECTED DEVELOPING COUNTRIES
 
References: 
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