The effects of population growth, environmental quality and trade openness on economic growth: a panel data application

Rahman, Mohammad Mafizur and Saidi, Kais and Mbarek, Mounir Ben (2017) The effects of population growth, environmental quality and trade openness on economic growth: a panel data application. Journal of Economic Studies, 44 (3 ). pp. 456-474. ISSN 0144-3585

Abstract

Purpose – The purpose of this paper is to explore the effects of population growth (PG), environmental
quality and trade openness on economic growth of major developed and developing countries.

Design/methodology/approach – The authors have used the panel unit root and panel co-integration
tests over the period 1960-2013. Granger causality test is used to find out the direction of causality between
the variables.

Findings – There is a bi-directional relationship between economic growth and trade openness, and a
unidirectional relation, running from trade openness to CO2 emissions in the three developed countries. PG has a
positive effect on economic growth in three developing countries and there exists a bidirectional relationships
between CO2 emissions and PG and a unidirectional relationship from PG to economic growth and from trade
openness to economic growth. Furthermore, there is a unidirectional relationship from PG to economic growth
and bidirectional relationships between trade openness and economic growth for the six selected countries.

Originality/value – This is the first comprehensive research that combined the selected three major
developed and three major emerging countries of the world to explore the effects of three important variables
on economic growth. The authors’ findings will help the policy makers as well as the people of these six
countries. this study has shown the aggregate and disaggregate results, so a comparison between the groups
of countries is possible. Therefore, this research has significant contributions.


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Item Type: Article (Commonwealth Reporting Category C)
Refereed: Yes
Item Status: Live Archive
Additional Information: Permanent restricted access to Published version, in accordance with the copyright policy of the publisher.
Faculty / Department / School: Current - Faculty of Business, Education, Law and Arts - School of Commerce
Date Deposited: 04 Sep 2017 23:14
Last Modified: 26 Apr 2018 23:57
Uncontrolled Keywords: economic growth, CO2 emissions, trade openness, Granger causality test, population growth
Fields of Research : 14 Economics > 1402 Applied Economics > 140205 Environment and Resource Economics
14 Economics > 1402 Applied Economics > 140202 Economic Development and Growth
14 Economics > 1403 Econometrics > 140304 Panel Data Analysis
Socio-Economic Objective: D Environment > 96 Environment > 9601 Air Quality > 960199 Air Quality not elsewhere classified
B Economic Development > 91 Economic Framework > 9103 International Trade > 910399 International Trade not elsewhere classified
B Economic Development > 91 Economic Framework > 9101 Macroeconomics > 910103 Economic Growth
B Economic Development > 91 Economic Framework > 9101 Macroeconomics > 910102 Demography
Identification Number or DOI: 10.1108/JES-02-2016-0031
URI: http://eprints.usq.edu.au/id/eprint/33057

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