Does Freedom Matter for Sustainable Economic Development? New Evidence from Spatial Econometric Analysis

Achieving sustainable economic development is always considered one of the main economic goals of countries. Therefore, researchers are interested in presenting new econometric models for more accurate identification of factors affecting economic growth. The current study evaluates the impact of various aspects of freedom (economic freedom, press freedom, civil freedom, and political rights) and an aggregated freedom index on economic growth in European countries from 2000 to 2019 using spatial panel econometric techniques. In addition, the effects of variables such as FDI, financial development (FD), human capital (HC), and capital stock on economic growth are examined. The findings of this research confirm the existence of spatial autocorrelation in economic growth. The results reveal that civil liberties, economic and press freedom, and aggregated freedom boost economic growth, whereas political rights have no significant effect on economic growth. Furthermore, the econometric model results indicate that FDI, FD, HC, and capital stock are positively and significantly associated with economic growth. This research is expected to provide policymakers with a thorough understanding of how to implement the best policies in European countries to achieve sustainable economic development

The Interplay Between Energy Consumption, Economic Growth and Environmental Pollution: Application of Spatial Panel Simultaneous-Equations Model

Economic growth planning and policy making is one of the macrocosmic goals which it need to pay specific attention to energy and environmental sector and their relationship with production. Therefore, this study has conducted to investigate the relationship between economic growth, energy consumption and environmental pollution using a Spatial Panel Simultaneous-Equations model for 9 developing countries during 2000-2011. Empirical results of this method show that energy consumption, economic growth and environmental pollution in each country is affected by these factors in neighboring countries. The results of research confirm there exists bidirectional causality between energy consumption and environmental pollution, economic growth and environmental pollution. Thus, there is a bidirectional causal relationship between energy consumption and economic growth. Regarding to result of this study suggests to achieve the sustainable economic growth should be used tax tools for controlling the emissions of CO2 and replacement of the renewable energies with fossil fuels

Does Freedom Matter for Sustainable Economic Development? New Evidence from Spatial Econometric Analysis

Achieving sustainable economic development is always considered one of the main economic goals of countries. Therefore, researchers are interested in presenting new econometric models for more accurate identification of factors affecting economic growth. The current study evaluates the impact of various aspects of freedom (economic freedom, press freedom, civil freedom, and political rights) and an aggregated freedom index on economic growth in European countries from 2000 to 2019 using spatial panel econometric techniques. In addition, the effects of variables such as FDI, financial development (FD), human capital (HC), and capital stock on economic growth are examined. The findings of this research confirm the existence of spatial autocorrelation in economic growth. The results reveal that civil liberties, economic and press freedom, and aggregated freedom boost economic growth, whereas political rights have no significant effect on economic growth. Furthermore, the econometric model results indicate that FDI, FD, HC, and capital stock are positively and significantly associated with economic growth. This research is expected to provide policymakers with a thorough understanding of how to implement the best policies in European countries to achieve sustainable economic development

Energy Consumption and Environmental Pollution: Evidence from the Spatial Panel Simultaneous-Equations Model of Developing Countries

This research applied a novel method to investigate the relationship between energy use and environmental pollution. We applied Spatial Panel Simultaneous-Equations for a panel of 22 developing countries over the period of 2000-2011. Previous researches indicate that the level of CO2 emissions increases with energy consumption. Also, Energy consumption is likely to have an increase in CO2 emissions. Appling a simultaneous equation model allowed us to estimate the relation between these two variables simultaneously. Identifying this relationship helps policymakers to design appropriate policies for achieving sustainable economic growth. On the other hand, the spatial models explain to what extent each dependent variable in a country depends on neighbors’ characteristics. Empirical results of this method show that energy consumption and environmental pollution in each country is affected by these factors in neighboring countries. Also, results confirm bidirectional causality and positive relation between energy use and environmental pollution. The econometrics estimation indicates that reducing CO2 emission in developing countries is dependent on the reform of energy consumption patterns and using renewable energy to replace fossil fuels in production simultaneously in these countries

Drought, Climate Change, and Dryland Wheat Yield Response: An Econometric Approach

Agriculture has been identified as one of the most vulnerable sectors affected by climate change. In the present study, we investigate the impact of climatic change on dryland wheat yield in the northwest of Iran for the future time horizon of 2041–2070. The Just and Pope production function is applied to assess the impact of climate change on dryland wheat yield and yield risk for the period of 1991–2016. The Statistical Downscaling Model (SDSM) is used to generate climate parameters from General Circulation Model (GCM) outputs. The results show that minimum temperature is negatively related to average yield in the linear model while the relationship is positive in the non-linear model. An increase in precipitation increases the mean yield in either model. The maximum temperature has a positive effect on the mean yield in the linear model, while this impact is negative in the non-linear model. Drought has an adverse impact on yield levels in both models. The results also indicate that maximum temperature, precipitation, and drought are positively related to yield variability, but minimum temperature is negatively associated with yield variability. The findings also reveal that yield variability is expected to increase in response to future climate scenarios. Given these impacts of temperature on rain-fed wheat crop and its increasing vulnerability to climatic change, policy-makers should support research into and development of wheat varieties that are resistant to temperature variations

Investigating environmental quality among G20 nations: The impacts of environmental goods and low-carbon technologies in mitigating environmental degradation

Environmental goods and low-carbon technologies have long been identified as having the potential to drive long-term economic progress without compromising environmental quality. However, their exact role in mitigating environmental degradation are yet to be unravelled. In addressing this shortfall, the extant literature relied on research funding and patent application as proxies for green technologies. Having established the weaknesses in the use of these variables as proxies for green technologies, this study explored the role of trade in environmental goods and low-carbon technologies in boosting environmental quality among G20 nation using a panel dataset from 1994 to 2018. The study employed the Method of Moment quantile regression for the model estimation and the Ridge regression, Discroll-Kraay standard error, and the Newey-West standard error estimators to test the robustness of our findings. Our findings indicate that whereas environmental goods promote environmental quality, low-carbon technologies decrease same. Also, the study found economic growth to exert an aggravating effect on environmental quality, while foreign direct investments, natural resource rents, human capital development, and renewable energy consumption exert positive influence on environmental quality. Based on the findings of the study, G20 nations are encouraged to improve green market structures to improve the trade in environmental goods and low-carbon technologies. Also the share of renewable energy sources in the overall energy basket must be improved to help improve environmental quality

Exploring the Nexus of Renewable Energy, Ecological Footprint, and Economic Growth through Globalization and Human Capital in G7 Economics

This study used panel simultaneous equations models with a generalized method of moments (GMM) estimator to examine the three-way linkages between ecological footprint (EFP), renewable energy consumption (REC), and income in the Group of Seven (G7) countries over the period 1990–2018. The outcomes of this study demonstrate a two-way association between gross domestic product (GDP) and renewable energy. The findings confirm the presence of a bidirectional link between outcome and ecological footprint, as well as between EFP and renewable energy. The results of this study demonstrate that improving human capital positively and significantly effects income, environmental quality, and REC. Ecological footprint is not significantly impacted by economic and social globalization, whereas the impact of financial globalization is negative and significant. Trade openness is positively and significantly connected with REC and income, which could contribute to reducing environmental deterioration. In conclusion, we make policy recommendations that are based on the findings of the study

Assessing the Global Drivers of Sustained Economic Development: The Role of Trade Openness, Financial Development, and FDI

Achieving economic development is one of the most important economic goals of every country. Identifying the determinants of economic growth, is a useful tool for adopting appropriate economic policies. This study, therefore, empirically examines the impact of trade openness, foreign direct investment, and financial development on economic growth, across 62 countries over the period 1995–2016. These countries are divided into two groups: low-income and high-income countries. We employ the pooled mean group (PMG), mean group (MG), and dynamic fixed effect (DFE) estimation techniques on the cross-country panel data. The findings show a positive long run association between trade openness, foreign direct investment (FDI), financial development, labor, government expenditure, and economic growth in low-income countries, with a positive and negative short run effect from capital and government expenditures, respectively. For high-income countries, a positive long run association between trade openness, FDI, capital, and economic growth exist. The short run estimates indicate a positive effect on trade openness and capital as well as a negative effect on government expenditure. Our study shows that the adoption of policies that improves access to skilled labor and international trade, affect the attainment of a sustainable economic development