Abstract
Attaining economic growth through sustainable measures benefits the overall society in the long run. Yet it is nevertheless challenging today as it was few decades ago. The selected economic development indicators of 50 countries, which include developed, in transition, and developing economies across five continents for a period of 50 years from 1971 to 2020, are investigated with a particular focus on the sustainability of economic growth. The chosen predictors retrieved from the World Bank database were the value added from agriculture, forestry and fishing, carbon dioxide and nitrous oxide emissions, domestic credit granted to the private sector by banks, and domestic credit provided by the financial sector. In the empirical study using the software EViews 11, results indicated that nitrous oxide emissions have considerably influenced the economic growth level of these countries, and elicited two issues on the sustainability of economic growth. The higher were the nitrous oxide emissions, the higher the level of economic growth, and the substantial the climate change. Domestic credit to private sector by banks and domestic credit provided by the financial sector did not influence economic growth. Our results suggest that more investments and green policies are needed to achieve the sustainability of economic growth across the fifty nations. Policy implications and future research directions are also addressed.
Similar content being viewed by others
References
Alaoui, E., A., & Nekrache, H. (2018). For sustainable economic growth that seeks to improve environmental quality: An empirical analysis applied to Morocco, Algeria, Tunisia, and Egypt. MPRA Paper, 85121, 12 March 2018.
Andrew, B. (2008). Market failure, government failure and externalities in climate change mitigation: The case for a carbon tax. Public Administration and Development, 28, 393–401.
Armeanu, D. S., Vintila, G., & Gherghina, S. C. (2017). Empirical study towards the drivers of sustainable economic growth in EU-28 countries. Sustainability, 10(1), 4.
Baietti, A., Shlyakhtenko, A., La Rocca, R., & Patel, U. D. (2012). Green infrastructure finance: Leading initiatives and research. The World Bank.
Batrancea, I., Batrancea, L., Rathnaswamy, M. M., Tulai, H., Fatacean, G., & Rus, M.-I. (2020a). Greening the financial system in USA, Canada and Brazil: A panel data analysis. Mathematics, 8(12), 2217.
Batrancea, I., Rathnaswamy, M. K., Batrancea, L., Nichita, A., Gaban, L., Fatacean, G., Tulai, H., Bircea, I., & Rus, M.-I. (2020b). A panel data analysis on sustainable economic growth in India, Brazil, and Romania. Journal of Risk and Financial Management, 13(8), 170.
Batrancea, L., & Nichita, A. (2015). Which is the best government? Colligating tax compliance and citizens’ insights regarding authorities’ actions. Transylvanian Review of Administrative Sciences, 44E, 5–22.
Batrancea, L., Nichita, A., Batrancea, I., & Gaban, L. (2018). The strenght of the relationship between shadow economy and corruption: Evidence from a worldwide country sample. Social Indicators Research, 138(3), 1119–1143.
Batrancea, L., Rathnaswamy, M. M., & Batrancea, I. (2021). A panel data analysis of economic growth determinants in 34 African countries. Journal of Risk and Financial Management, 14(6), 260.
Batrancea, L., Rathnaswamy, M. M., Batrancea, I., Nichita, A., Rus, M.-I., Tulai, H., Fatacean, G., Masca, E. S., & Morar, I. D. (2020c). Adjusted net savings of CEE and Baltic nations in the context of sustainable economic growth: A panel data analysis. Journal of Risk and Financial Management, 13(10), 234.
Batrancea, L. M., Nichita, R. A., Batrancea, I., & Moldovan, B. A. (2012). Tax compliance models: From economic to behavioral approaches. Transylvanian Review of Administrative Sciences, 36E, 13–26.
Bloomberg. (2021). China emissions greater than all developed nations combined. Bloomberg News, 6 May 2021.
Castro, C., & Lopes, C. (2021). Digital government and sustainable development. Journal of the Knowledge Economy.
Chen, C., & Rothschild, R. (2010). An application of hedonic pricing analysis to the case of hotel rooms in Taipei. Tourism Economics, 16(3), 685–694.
Climate Transparency. (2021). Germany, climate transparency report: Comparing G20 climate action towards net zero.
Friedrich, J., & Damassa, T. (2014). The history of carbon emissions. Retrieved from: https://www.wri.org/blog/2014/05/history-carbon-dioxide-emissions. Accessed 3 October 2021.
Geupel, M., Heldstab, J., Schäppi, B., Reutimann, J., Bach, M., Häußermann, U., Knoll, L., Klement, L., & Breuer, L. (2021). A national nitrogen target for Germany. Sustainability, 13(3), 1121. https://doi.org/10.3390/su13031121
Harris, J. M., Roach, B., & Codur, A.-M. (2017). The economics of global climate change. Tufts University.
Heal, G. (Ed.). (2010). Is economic growth sustainable? Springer.
Hess, P. N. (2016). Economic growth and sustainable development (2nd ed.). Routledge.
Higgins, K. L. (2014). Economic growth and sustainability. Elsevier Science.
https://data.worldbank.org/. Accessed 2 February 2021.
https://thecommonwealth.org/member-countries. Accessed 3 February 2021.
https://worldpopulationreview.com/. Accessed 3 March 2021.
https://www.mercosur.int/en/. Accessed 3 February 2021.
https://www.trade.gov/usmca. Accessed 3 February 2021.
https://www.wri.org/blog/2014/05/history-carbon-dioxide-emissions. Accessed 3 February 2021.
Hur, D.-Y., Kim, S.-U., Park, H.-C., Kim, K.-K., Son, H.-J., Lee, K.-M., Kim, Y.-J., & Hong, C.-O. (2021). Nitrous oxide emission and crop yield in arable soil amended with bottom ash. Agriculture, 11, 1012. https://doi.org/10.3390/agriculture11101012
Kamoun, M., Abdelfaki, I., & Ghorbel, A. (2019). The impact of renewable energy on sustainable growth: Evidence from a panel of OECD countries. Journal of the Knowledge Economy, 10, 221–237.
Kasperowicz, R. (2015). Economic growth and CO2 emissions: The ECM analysis. Journal of International Studies, 8(3), 91–98.
Klein, K. (2021). Nitrous oxide (N2O) emissions in Japan from fiscal year 2010 to 2019. Energy and Environment, Emissions.
Knoema. (2020). China-Nitrous oxide emissions. World Data Atlas, Knoema.com
Lyeonov, S., Pimonenko, T., Bilan, Y., Štreimikienė, D., & Mentel, G. (2019). Assessment of green investments’ impact on sustainable development: Linking gross domestic product per capita, greenhouse gas emissions and renewable energy. Energies, 12, 3891.
Migusez, J. D. G. (2021). Non-CO2 greenhouse gas emission reductions. Ministry of Environment of Brazil, UNFCCC.
Ministry of Environment of Japan. (2021). National greenhouse gas inventory report of Japan. Center for Global Environment Research.
Mrowezyriska-Kaminiska, A., Bajan, B., Pawlowski, P. P., Genstwa, N., & Zmysiona, J. (2021). Greenhouse gas emissions intensity of food production systems and its determinants. PLoS One, 16(4), a0250995.
Narayan, P., & Narayan, S. (2010). Carbon dioxide emissions and economic growth: Panel data evidence from developing countries. Energy Policy, 38(1), 661–666.
Narayan, P. K., Saboori, B., & Soleymani, A. (2016). Economic growth and carbon emissions. Economic Modelling, 53, 388–397.
Nederveen Pieterse, J. (2021). Connectivity and global studies. Palgrave Macmillan.
Nichita, A., Batrancea, L., Pop, C. M., Batrancea, I., Morar, I. D., Masca, E., Roux-Cesar, A. M., Forte, D., Formigoni, H., & da Silva, A. A. (2019). We learn not for school but for life: Empirical evidence of the impact of tax literacy on tax compliance. Eastern European Economics, 57(5), 397–429.
Olivier, J. G. J., & Peters, J. A. H. W. (2020). Trends in global CO2 and total greenhouse gas emissions: 2019 Report (p. 2020). PBL Netherlands Environmental Assessment Agency.
Osobajo, O. A., Otitoju, A., Otitoju, M. A., & Oke, A. (2020). The impact of energy consumption and economic growth on carbon dioxide emissions. Sustainability, 12(19), 7965. https://doi.org/10.3390/su12197965
Osterhammel, J., Petersson, N. P., & Geyer, D. (2009). Globalization: A short history. Princeton University Press.
Ott, A. C. (2010). The 24-hour customer: New rules for winning in a time-starved, always-connected economy. HarperCollins.
Pallant, J. (2010). SPSS survival manual: A step by step guide to data analysis using SPSS (4th ed.). Open University Press/McGrawHill.
Reserve Bank of India. (2019). Green finance in India: Progress and challenges. RBI Bulletin, January, 61–72.
Rezai, A., Foley, D. K., & Taylor, L. (2016). Global warming and economic externalities. In G. Chichilnisky, & A. Rezai (Eds.), The economics of the global environment. Studies in economic theory, vol. 29 (pp. 447–470). Springer.
Rosés, J. R., & Wolf, N. (Eds.). (2020). The economic development of Europe’s regions: A quantitative history since 1900. Routledge.
Shikwambana, L., Mhangara, P., & Kganyago, M. (2021). Assessing the relationship between economic growth and emissions levels in South Africa between 1994 and 2019. Sustainability, 13, 2645. https://doi.org/10.3390/su13052645
Shogren, J. F. (Ed.). (2013). Encyclopedia of energy, natural resources, and environmental economics. Elsevier Science.
Statista. (2021). https://www.statista.com/. Accessed 4 February 2021.
Stoye, E. (2014). China’s nitrous oxide emissions to triple by 2020. Chemistry World, Royal Society of Chemistry, 7 May 2014.
Taş, N., Önder, E., & Hepsen, A. (2013) Determinants of economic growth in G20 countries: A panel data approach. International Conference on Applied Business and Economics (ICABE-13), October 2013, New York, USA & International Journal of Latest Trends in Finance and Economic Sciences, 3(3), 572–582. Available at SSRN: https://ssrn.com/abstract=2332189
Tiba, S., & Frikha, M. (2020). Sustainability challenge in the agenda of African countries: Evidence from simultaneous equations models. Journal of the Knowledge Economy, 11, 1270–1294.
UNEP. (2020). https://www.unep.org/. Accessed 4 February 2021.
United Nations Department of Economic and Social Affairs. (2021). World economic situation and prospects 2021. United Nations.
Vlasova, M., Pimenova, A., Kuzmina, S., & Morozova, N. (2016). Tools for company’s sustainable economic growth. Procedia Engineering, 165, 1118–1124.
Vogelsang, M. (2012). Digitalization in open economies: Theory and policy implications. Physica.
Wang, C., Amon, B., Schulz, K., & Mehdi, B. (2021). Factors that influence nitrous oxide emissions from agricultural soils as well as their representation in simulation models: A review. Agronomy, 2921(11), 770.
Wang, S. S., Zhou, D. Q., Zhou, P., & Wang, Q. W. (2011). CO2 emissions, energy consumption and economic growth in China: A panel data analysis. Energy Policy, 39(9), 4870–4875.
Worldometer. (2021). https://www.worldometers.info/. Accessed 4 February 2021.
Zhou, Y., et al. (2021). Four decades of nitrous oxide emission from Chinese aquaculture underscores the urgency for climate change mitigation. Environmental Research Letters, 16, 114038.
Acknowledgements
The authors would like to thank the editors and an anonymous reviewer for helpful comments and suggestions.
Author information
Authors and Affiliations
Corresponding author
Ethics declarations
Conflict of Interest
The authors declare no competing interests.
Additional information
Publisher's Note
Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.
Rights and permissions
About this article
Cite this article
Batrancea, L.M., Rathnaswamy, M.M., Rus, MI. et al. Determinants of Economic Growth for the Last Half of Century: A Panel Data Analysis on 50 Countries. J Knowl Econ 14, 2578–2602 (2023). https://doi.org/10.1007/s13132-022-00944-9
Received:
Accepted:
Published:
Issue Date:
DOI: https://doi.org/10.1007/s13132-022-00944-9