Economic growth and environmental degradation: evidence from Heckscher-Ohlin theory and Environmental Kuznets Curve hypothesis / Abby Christie Clarnce

Clarnce, Abby Christie (2020) Economic growth and environmental degradation: evidence from Heckscher-Ohlin theory and Environmental Kuznets Curve hypothesis / Abby Christie Clarnce. Masters thesis, Universiti Teknologi MARA.

Abstract

The relationship between economic growth and environmental degradation has been one of the debateable issues for researcher to study lately as it attracts a lot of attention. Most studies focused on macroeconomic field whereby the nations are restricted to specific regions only. This study aims to investigate the relationship between economic growth and environmental degradation (proxied by CO2 emission). The researcher employed the Heckscher-Ohlin theory, specifically the factor abundance in segregating and choosing the countries. The countries are segregated into two types; K-abundant and L-abundant nations. To determine whether there are significant difference between countries, researcher puts an extra effort by considering whether there is a significant
difference between the factor abundance towards the environmental degradation. The reason of segregating the data into two groups will help us to identify the significant difference between K and L abundant. This study also re-examines whether there is an existence of Environmental Kuznets Curve (EKC) hypothesis when the countries are segregated into K and L abundant nations. Therefore, there are a total of 102 countries chosen and the time period covers from 1995 until 2014. Furthermore, this research applied Panel Pooled Ordinary Least Square (OLS) and polynomial form to determine the existence of Environmental Kuznets Curve (EKC) hypothesis. The empirical result revealed economic growth and environmental degradation posed a positive relationship
between them in all estimations despite the difference in factor abundance. The Environmental Kuznets Curve was only valid in L-abundant nations as there was a turning point.

Metadata

Item Type: Thesis (Masters)
Creators:
Creators
Email / ID Num.
Clarnce, Abby Christie
2017966035
Contributors:
Contribution
Name
Email / ID Num.
Thesis advisor
Karia, Abdul Aziz (Dr)
UNSPECIFIED
Subjects: H Social Sciences > HB Economic Theory. Demography > Economics
H Social Sciences > HC Economic History and Conditions > Environmental policy and economic development. Sustainable development. Environmental management
Divisions: Universiti Teknologi MARA, Shah Alam > Faculty of Business and Management
Programme: Master of Science Business Management
Keywords: Economic growth; environmental degradation; Heckscher-Ohlin; K-abundant nations; L-abundant nations; Environmental Kuznets Curve (EKC); Panel Pooled Ordinary Least Square (OLS); polynomial form
Date: May 2020
URI: https://ir.uitm.edu.my/id/eprint/59563
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