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Integrated paradigm for sustainable development: A panel data study

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  • Abou-Ali, Hala
  • Abdelfattah, Yasmine M.

Abstract

The concept of sustainable development requires countries all over the world to use their natural resources rationally while pursuing their economic development, and at the same time to consider the quality of environment as a determinant of their societies’ welfare. First, the method of principle component analysis and composite indicators are adopted to construct an overall sustainable development index and resource intensity measure using Millennium Development Goals (MDG) and World Development Indicator Data. Second, this paper applies an integrated paradigm to investigate the relationship between natural resource availability, economic growth, and the environment using a panel of 62 countries over the period 1990–2007. This interlocking relationship is analyzed through estimating the Resource Curse Hypothesis model and the Environmental Kuznets Curve model simultaneously while taking into consideration an important dimension—namely institutional quality. The results suggest that the way countries are dealing with sustainability in the context of MDG is negatively affecting the quality of the environment. Moreover, it proposes that countries with good institution quality are not taking the environmental problems seriously.

Suggested Citation

  • Abou-Ali, Hala & Abdelfattah, Yasmine M., 2013. "Integrated paradigm for sustainable development: A panel data study," Economic Modelling, Elsevier, vol. 30(C), pages 334-342.
  • Handle: RePEc:eee:ecmode:v:30:y:2013:i:c:p:334-342
    DOI: 10.1016/j.econmod.2012.09.016
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    Cited by:

    1. Qingling Shi & Xiangzheng Deng & Chenchen Shi & Shiyi Chen, 2015. "Exploration of the Intersectoral Relations Based on Input-Output Tables in the Inland River Basin of China," Sustainability, MDPI, Open Access Journal, vol. 7(4), pages 1-18, April.
    2. Thomas Jobert & Fatih Karanfil & Anna Tykhonenko, 2014. "Estimating country-specific environmental Kuznets curves from panel data: a Bayesian shrinkage approach," Applied Economics, Taylor & Francis Journals, vol. 46(13), pages 1449-1464, May.
    3. Farhani, Sahbi & Mrizak, Sana & Chaibi, Anissa & Rault, Christophe, 2014. "The environmental Kuznets curve and sustainability: A panel data analysis," Energy Policy, Elsevier, vol. 71(C), pages 189-198.

    More about this item

    Keywords

    Economic growth; Resource curse hypothesis; Environmental Kuznets curve; Sustainable development; Principle component analysis; Simultaneous equations with error components;

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • C38 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Classification Methdos; Cluster Analysis; Principal Components; Factor Analysis
    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
    • O50 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - General
    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development

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