IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v17y2025i12p5513-d1679547.html
   My bibliography  Save this article

The Natural Environment and Investment in Economic Growth: From the Perspective of the Prosperity of Developed and Developing Countries

Author

Listed:
  • Ximena Morales-Urrutia

    (Facultad de Contabilidad y Auditoría, Universidad Técnica de Ambato, Ambato 180206, Ecuador)

  • Aracelly Núñez-Naranjo

    (Centro de Investigaciones de Ciencias Humanas y de la Educación (CICHE), Facultad de Ciencias de la Educación, Universidad Tecnológica Indoamérica, Ambato 180103, Ecuador)

  • Rubén Nogales-Portero

    (Facultad de Ingeniería en Sistemas, Electrónica e Industrial, Universidad Técnica de Ambato, Ambato 180206, Ecuador)

  • Evelin Yanez-Toapanta

    (Facultad de Contabilidad y Auditoría, Universidad Técnica de Ambato, Ambato 180206, Ecuador)

Abstract

This research aims to identify the environmental factors that affect economic growth in developed and developing countries using a panel data regression model. In advanced economies, restrictions on international investment, emissions, the use of natural resources, and environmental preservation efforts stand out as influential variables. In contrast, in developing countries, contract enforcement, emissions, and exposure to air pollution are key determinants of economic performance. This study concludes that the natural environment plays a more significant role in the economic growth of developed countries, due to their greater capacity to implement sustainability policies. In developing countries, institutional conditions and environmental management are more relevant, highlighting the need to strengthen legal frameworks and invest in mitigation measures to achieve sustainable economic development.

Suggested Citation

  • Ximena Morales-Urrutia & Aracelly Núñez-Naranjo & Rubén Nogales-Portero & Evelin Yanez-Toapanta, 2025. "The Natural Environment and Investment in Economic Growth: From the Perspective of the Prosperity of Developed and Developing Countries," Sustainability, MDPI, vol. 17(12), pages 1-15, June.
    • Handle: RePEc:gam:jsusta:v:17:y:2025:i:12:p:5513-:d:1679547
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/17/12/5513/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/17/12/5513/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Crespo, Nuno & Fontoura, Maria Paula, 2007. "Determinant Factors of FDI Spillovers - What Do We Really Know?," World Development, Elsevier, vol. 35(3), pages 410-425, March.
    2. Daron Acemoglu & James Robinson, 2010. "The Role of Institutions in Growth and Development," Review of Economics and Institutions, Università di Perugia, vol. 1(2).
    3. Robert M. Solow, 1956. "A Contribution to the Theory of Economic Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 70(1), pages 65-94.
    4. Simona Andreea Apostu & Iza Gigauri & Mirela Panait & Pedro A. Martín-Cervantes, 2023. "Is Europe on the Way to Sustainable Development? Compatibility of Green Environment, Economic Growth, and Circular Economy Issues," IJERPH, MDPI, vol. 20(2), pages 1-17, January.
    5. Zahoor Ahmed & Mahmood Ahmad & Husam Rjoub & Olga A. Kalugina & Nazim Hussain, 2022. "Economic growth, renewable energy consumption, and ecological footprint: Exploring the role of environmental regulations and democracy in sustainable development," Sustainable Development, John Wiley & Sons, Ltd., vol. 30(4), pages 595-605, August.
    6. Orejarena-Rondón, Andrés F. & Restrepo, Juan C. & Correa-Metrio, Alex & Orfila, Alejandro, 2022. "Wave energy flux in the Caribbean Sea: Trends and variability," Renewable Energy, Elsevier, vol. 181(C), pages 616-629.
    7. Emily Ghosh & Leonie J. Pearson, 2025. "Rethinking Economic Foundations for Sustainable Development: A Comprehensive Assessment of Six Economic Paradigms Against the SDGs," Sustainability, MDPI, vol. 17(10), pages 1-23, May.
    8. Xiaohuan Yang & Hanqing Ma, 2009. "Natural Environment Suitability of China and Its Relationship with Population Distributions," IJERPH, MDPI, vol. 6(12), pages 1-15, December.
    9. Eglantina Hysa & Alba Kruja & Naqeeb Ur Rehman & Rafael Laurenti, 2020. "Circular Economy Innovation and Environmental Sustainability Impact on Economic Growth: An Integrated Model for Sustainable Development," Sustainability, MDPI, vol. 12(12), pages 1-16, June.
    10. Fritz, Martin & Koch, Max, 2014. "Potentials for prosperity without growth: Ecological sustainability, social inclusion and the quality of life in 38 countries," Ecological Economics, Elsevier, vol. 108(C), pages 191-199.
    11. Emilio Abad-Segura & Ana Batlles de la Fuente & Mariana-Daniela González-Zamar & Luis Jesús Belmonte-Ureña, 2020. "Effects of Circular Economy Policies on the Environment and Sustainable Growth: Worldwide Research," Sustainability, MDPI, vol. 12(14), pages 1-27, July.
    12. Paul M. Romer, 1994. "The Origins of Endogenous Growth," Journal of Economic Perspectives, American Economic Association, vol. 8(1), pages 3-22, Winter.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Javier Barbero & Ernesto Rodríguez-Crespo, 2022. "Technological, institutional, and geographical peripheries: regional development and risk of poverty in the European regions," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 69(2), pages 311-332, October.
    2. S. S. Abere & T. O. Akinbobola, 2020. "External Shocks, Institutional Quality, and Macroeconomic Performance in Nigeria," SAGE Open, , vol. 10(2), pages 21582440209, May.
    3. Chuku Chuku & Victor Ajayi, 2022. "Working Paper 363 - Growing Green: Enablers and Barriers for Africa," Working Paper Series 2489, African Development Bank.
    4. Santos, Eleonora & Khan, Shahed, 2018. "Determinant Factors of Pecuniary Externalities," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 6(8), pages 180-198.
    5. Sorin Celea & Petre Brezeanu & Ana Petrina Păun, 2013. "Fiscal Discipline within the EU: Comparative Analysis," Annals of the University of Petrosani, Economics, University of Petrosani, Romania, vol. 13(2), pages 23-30.
    6. Szalavetz, Andrea, 2002. "Az informatikai szektor és a felzárkózó gazdaságok [The informatics sector and the advancing economies]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(9), pages 794-804.
    7. Burhan Can Karahasan & Firat Bilgel, 2018. "Economic Geography, Growth Dynamics and Human Capital Accumulation in Turkey: Evidence from Regional and Micro Data," Working Papers 1233, Economic Research Forum, revised 10 Oct 2018.
    8. David Andolfatto, 2005. "Macroeconomic Theory and Policy," Online economics textbooks, SUNY-Oswego, Department of Economics, number prin14.
    9. Robbie Maris & Mark Holmes, 2023. "Economic Growth Theory and Natural Resource Constraints: A Stocktake and Critical Assessment," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 56(2), pages 255-268, June.
    10. Asongu, Simplice & Boateng, Agyenim & Akamavi, Raphael, 2016. "Mobile Phone Innovation and Inclusive Human Development: Evidence from Sub-Saharan Africa," MPRA Paper 75046, University Library of Munich, Germany.
    11. Jordi Pons-Novell & Elisabet Viladecans-Marsal, 1999. "Kaldor's Laws and Spatial Dependence: Evidence for the European Regions," Regional Studies, Taylor & Francis Journals, vol. 33(5), pages 443-451.
    12. Mikesell, Raymond F., 1995. "The limits to growth : A reappraisal," Resources Policy, Elsevier, vol. 21(2), pages 127-131, June.
    13. Åsa Johansson, 2016. "Public Finance, Economic Growth and Inequality: A Survey of the Evidence," OECD Economics Department Working Papers 1346, OECD Publishing.
    14. Amit Nandan & Hrushikesh Mallick, 2022. "Do growth-promoting factors induce income inequality in a transitioning large developing economy? An empirical evidence from Indian states," Economic Change and Restructuring, Springer, vol. 55(2), pages 1109-1139, May.
    15. Moustfa Ismael Khaleel & Ahmed Younis Jabbar & Maha Kalai & Rima Aloulou & Kamel Helali, 2024. "An Applied Study of the Symmetric and Asymmetric Impact of Oil Prices and International Financial Markets on Economic Growth in Iraq," International Journal of Energy Economics and Policy, Econjournals, vol. 14(4), pages 66-80, July.
    16. Turnovsky, S., 2000. "Growth in an Open Economy: some Recent Developments," Papers 5, Warwick - Development Economics Research Centre.
    17. Onafowora, Olugbenga A. & Owoye, Oluwole, 2024. "Trade openness, governance quality, and economic growth in Latin America and the Caribbean," International Economics, Elsevier, vol. 179(C).
    18. Nicholas Tsounis & Ian Steedman, 2021. "A New Method for Measuring Total Factor Productivity Growth Based on the Full Industry Equilibrium Approach: The Case of the Greek Economy," Economies, MDPI, vol. 9(3), pages 1-21, August.
    19. Riada Berhani, 2015. "Economic Growth and Openness in Transition: A Study of Western Balkans," Academic Journal of Interdisciplinary Studies, Richtmann Publishing Ltd, vol. 4, March.
    20. Jeon, Heesang, 2015. "Knowledge and Contemporary Capitalism in Light of Marx's Value Theory," Thesis Commons g5njk, Center for Open Science.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    JEL classification:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:17:y:2025:i:12:p:5513-:d:1679547. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.