title: An interactive environmental model for economic growth: evidence from a panel of countries.
abstract: This study aims to determine an interactive environmental model for economic growth that would be supported by the "sustainability principles" across the globe. The study examines the relationship between environmental pollutants (i.e., carbon dioxide emission, sulfur dioxide emission, mono-nitrogen oxide, and nitrous oxide emission); population growth; energy use; trade openness; per capita food production; and it's resulting impact on the real per capita GDP and sectoral growth (i.e., share of agriculture, industry, and services in GDP) in a panel of 34 high-income OECD, high-income non-OECD, and Europe and Central Asian countries, for the period of 1995-2014. The results of the panel fixed effect regression show that per capita GDP are influenced by sulfur dioxide emission, population growth, and per capita food production variability, while energy and trade openness significantly increases per capita income of the region. The results of the panel Seemingly Unrelated Regression (SUR) show that carbon dioxide emission significantly decreases the share of agriculture and industry in GDP, while it further supports the share of services sector to GDP. Both the sulfur dioxide and mono-nitrogen oxide emission decreases the share of services in GDP; nitrous oxide decreases the share of industry in GDP; while mono-nitrogen oxide supports the industrial activities. The following key growth-specific results has been obtained from the panel SUR estimation, i.e., (i) Both the food production per capita and trade openness significantly associated with the increasing share of agriculture, (ii) food production and energy use significantly increases the service sectors' productivity; (iii) food production decreases the industrial activities; (iv) trade openness decreases the share of services to GDP while it supports the industrial share to GDP; and finally, (v) energy demand decreases along with the increase agricultural share in the region. The results emphasize the need for an interactive environmental model that facilitates the process of sustainable development across the globe.
authors.affiliation: Faculty of Management, Universiti Teknologi Malaysia, UTM Skudai, 81310, Johor, Malaysia.
authors.forename: Suresh
authors.initials: S
authors.lastname: Ramakrishnan
authors.affiliation: Faculty of Management, Universiti Teknologi Malaysia, UTM Skudai, 81310, Johor, Malaysia.
authors.forename: Sanil S
authors.initials: SS
authors.lastname: Hishan
authors.affiliation: Faculty of Management, Universiti Teknologi Malaysia, UTM Skudai, 81310, Johor, Malaysia.
authors.forename: Agha Amad
authors.initials: AA
authors.lastname: Nabi
authors.affiliation: Department of Management Sciences, University of Gujrat, Gujrat, Pakistan.
authors.forename: Zeeshan
authors.initials: Z
authors.lastname: Arshad
authors.affiliation: Faculty of Management, Universiti Teknologi Malaysia, UTM Skudai, 81310, Johor, Malaysia.
authors.forename: Malini
authors.initials: M
authors.lastname: Kanjanapathy
authors.affiliation: Department of Economics, Abbottabad University of Science & Technology, Tehsil Havelian, District Abbottabad, khyber pakhtunkhwa, Pakistan. khalid_zaman786@yahoo.com.
authors.forename: Khalid
authors.initials: K
authors.lastname: Zaman
authors.affiliation: Center for Management and Commerce, University of Swat, Khyber Pakhtunkhwa, Pakistan.
authors.forename: Faisal
authors.initials: F
authors.lastname: Khan
mesh_terms: D000383:Agriculture; D001208:Asia; D002245:Carbon Dioxide / Q000032:analysis; D003247:Conservation of Natural Resources; D057217:Economic Development; D005060:Europe; D007221:Industry; D009609:Nitrous Oxide / Q000032:analysis
chemical_list: D002245:Carbon Dioxide; D009609:Nitrous Oxide
keywords: Economic growth; Energy demand; Environmental pollutants; Panel fixed effect regression; Panel seemingly unrelated regression; Trade openness