Impact of Globalization on Green Growth: A Case of OECD Countries

Abstract

Green growth is considered as healthy sign for any country in the world. With growing pollution and other health issues now it is considered as burning issue, either to save our natural resources or the cost should be paid in case of over or unrealistic consumption of resources. This study has been carried with real intension to investigate the role of fdi, R &D and trade openness on green economic growth of OECD countries. Developed economies are open for foreign direct investment, more liberal trade policies and ready to adopt technological innovations, all that causes to bring rapid environmental changes in these nations and continuously increasing level of heat in the atmosphere of these economies. No doubt these countries are attaining high speed of growth at high level of CO2 in the atmosphere. Therefore, this study is conducted to identify the factors that can affect green economic growth. Data is extracted from world development indicator from 1991-2018 where results depict that FDI (Foreign Direct Investment) and trade openness has significant and positive relationship with the emission of CO2 in air and has certain association with green economic growth in short run as well as in the long run. Whereas research and development cost has significant but negative relation with green growth of the OECD countries. Policy makers should work on research and development if they are more focused on green growth of the countries