IDEAS home Printed from https://ideas.repec.org/a/spr/jknowl/v14y2023i3d10.1007_s13132-022-00944-9.html
   My bibliography  Save this article

Determinants of Economic Growth for the Last Half of Century: A Panel Data Analysis on 50 Countries

Author

Listed:
  • Larissa M. Batrancea

    (Department of Business, Babes-Bolyai University)

  • Malar Maran Rathnaswamy

    (Department of Economics and Business Administration, Babes-Bolyai University)

  • Mircea-Iosif Rus

    (National Institute for Research-Development in Construction, Urbanism and Sustainable Territorial Development “URBAN INCERC”)

  • Horia Tulai

    (Department of Economics and Business Administration, Babes-Bolyai University)

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.

Suggested Citation

  • Larissa M. Batrancea & Malar Maran Rathnaswamy & Mircea-Iosif Rus & Horia Tulai, 2023. "Determinants of Economic Growth for the Last Half of Century: A Panel Data Analysis on 50 Countries," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 14(3), pages 2578-2602, September.
  • Handle: RePEc:spr:jknowl:v:14:y:2023:i:3:d:10.1007_s13132-022-00944-9
    DOI: 10.1007/s13132-022-00944-9
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s13132-022-00944-9
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.

    File URL: https://libkey.io/10.1007/s13132-022-00944-9?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Daniel Ştefan Armeanu & Georgeta Vintilă & Ştefan Cristian Gherghina, 2017. "Empirical Study towards the Drivers of Sustainable Economic Growth in EU-28 Countries," Sustainability, MDPI, vol. 10(1), pages 1-22, December.
    2. Larissa Batrancea & Anca Nichita & Ioan Batrancea & Lucian Gaban, 2018. "The Strenght of the Relationship Between Shadow Economy and Corruption: Evidence from a Worldwide Country-Sample," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 138(3), pages 1119-1143, August.
    3. Manel Kamoun & Ines Abdelkafi & Abdelfetah Ghorbel, 2019. "The Impact of Renewable Energy on Sustainable Growth: Evidence from a Panel of OECD Countries," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 10(1), pages 221-237, March.
    4. Geoffrey Heal (ed.), 2010. "Is Economic Growth Sustainable?," International Economic Association Series, Palgrave Macmillan, number 978-0-230-27428-0, November.
    5. Andrey Shlyakhtenko & Aldo Baietti & Roberto La Rocca & Urvaksh D. Patel, 2012. "Green Infrastructure Finance : Leading Initiatives and Research," World Bank Publications - Books, The World Bank Group, number 13142, April.
    6. Sofien Tiba & Mohamed Frikha, 2020. "Sustainability Challenge in the Agenda of African Countries: Evidence from Simultaneous Equations Models," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 11(3), pages 1270-1294, September.
    7. Higgins, Karen L., 2014. "Economic Growth and Sustainability," Elsevier Monographs, Elsevier, edition 1, number 9780128022047.
    8. Narayan, Paresh Kumar & Saboori, Behnaz & Soleymani, Abdorreza, 2016. "Economic growth and carbon emissions," Economic Modelling, Elsevier, vol. 53(C), pages 388-397.
    9. Anca Nichita & Larissa Batrancea & Ciprian Marcel Pop & Ioan Batrancea & Ioan Dan Morar & Ema Masca & Ana Maria Roux-Cesar & Denis Forte & Henrique Formigoni & Adilson Aderito da Silva, 2019. "We Learn Not for School but for Life: Empirical Evidence of the Impact of Tax Literacy on Tax Compliance," Eastern European Economics, Taylor & Francis Journals, vol. 57(5), pages 397-429, September.
    10. Oluyomi A. Osobajo & Afolabi Otitoju & Martha Ajibola Otitoju & Adekunle Oke, 2020. "The Impact of Energy Consumption and Economic Growth on Carbon Dioxide Emissions," Sustainability, MDPI, vol. 12(19), pages 1-16, September.
    11. Narayan, Paresh Kumar & Narayan, Seema, 2010. "Carbon dioxide emissions and economic growth: Panel data evidence from developing countries," Energy Policy, Elsevier, vol. 38(1), pages 661-666, January.
    12. Serhiy Lyeonov & Tetyana Pimonenko & Yuriy Bilan & Dalia Štreimikienė & Grzegorz Mentel, 2019. "Assessment of Green Investments’ Impact on Sustainable Development: Linking Gross Domestic Product Per Capita, Greenhouse Gas Emissions and Renewable Energy," Energies, MDPI, vol. 12(20), pages 1-12, October.
    13. Ching-Fu Chen & R. Rothschild, 2010. "An Application of Hedonic Pricing Analysis to the Case of Hotel Rooms in Taipei," Tourism Economics, , vol. 16(3), pages 685-694, September.
    14. Markus Geupel & Jürg Heldstab & Bettina Schäppi & Judith Reutimann & Martin Bach & Uwe Häußermann & Lukas Knoll & Laura Klement & Lutz Breuer, 2021. "A National Nitrogen Target for Germany," Sustainability, MDPI, vol. 13(3), pages 1-18, January.
    15. Do-Yeong Hur & Sung-Un Kim & Hyeon-Cheol Park & Keun-Ki Kim & Hong-Ju Son & Kwang-Min Lee & Yu-Jin Kim & Chang-Oh Hong, 2021. "Nitrous Oxide Emission and Crop Yield in Arable Soil Amended with Bottom Ash," Agriculture, MDPI, vol. 11(10), pages 1-15, October.
    16. Ioan Batrancea & Larissa Batrancea & Malar Maran Rathnaswamy & Horia Tulai & Gheorghe Fatacean & Mircea-Iosif Rus, 2020. "Greening the Financial System in USA, Canada and Brazil: A Panel Data Analysis," Mathematics, MDPI, vol. 8(12), pages 1-13, December.
    17. El Alaoui, Aicha & Nekrache, Hassane, 2017. "For sustainable economic growth that seeks to improve environmental quality: an empirical analysis applied to morocco, algeria, tunisia, and egypt," MPRA Paper 85121, University Library of Munich, Germany, revised Mar 2018.
    18. Larissa Batrancea & Malar Mozhi Rathnaswamy & Ioan Batrancea, 2021. "A Panel Data Analysis of Economic Growth Determinants in 34 African Countries," JRFM, MDPI, vol. 14(6), pages 1-15, June.
    19. 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, Elsevier, vol. 39(9), pages 4870-4875, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Hari Lal Bhaskar & Mohammad Osama & Reeta, 2025. "Maximizing Business Process Efficiency in Industry 4.0: A Techno-Functional Exploration of Process Mining Tools," SN Operations Research Forum, Springer, vol. 6(1), pages 1-34, March.
    2. Rekha Goyat & Mahipal Singh, 2025. "Analyzing the Barriers of Industry 4.0 Adoption in Indian Healthcare Sector Using Best–Worst Method," SN Operations Research Forum, Springer, vol. 6(2), pages 1-21, June.

    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. Shahbaz, Muhammad & Haouas, Ilham & Hoang, Thi Hong Van, 2019. "Economic growth and environmental degradation in Vietnam: Is the environmental Kuznets curve a complete picture?," Emerging Markets Review, Elsevier, vol. 38(C), pages 197-218.
    2. Mrabet, Zouhair & Alsamara, Mouyad & Mimouni, Karim & Mnasri, Ayman, 2021. "Can human development and political stability improve environmental quality? New evidence from the MENA region," Economic Modelling, Elsevier, vol. 94(C), pages 28-44.
    3. Shahbaz, Muhammad & Nasreen, Samia & Ahmed, Khalid & Hammoudeh, Shawkat, 2017. "Trade openness–carbon emissions nexus: The importance of turning points of trade openness for country panels," Energy Economics, Elsevier, vol. 61(C), pages 221-232.
    4. Lau, Lin-Sea & Choong, Chee-Keong & Ng, Cheong-Fatt & Liew, Feng-Mei & Ching, Suet-Ling, 2019. "Is nuclear energy clean? Revisit of Environmental Kuznets Curve hypothesis in OECD countries," Economic Modelling, Elsevier, vol. 77(C), pages 12-20.
    5. Muhammad Shahbaz & Mantu Kumar Mahalik & Syed Jawad Hussain Shahzad & Shawkat Hammoudeh, 2019. "Testing the globalization-driven carbon emissions hypothesis: International evidence," International Economics, CEPII research center, issue 158, pages 25-38.
    6. Larissa M. Batrancea & Mehmet Ali Balcı & Ömer Akgüller & Lucian Gaban, 2022. "What Drives Economic Growth across European Countries? A Multimodal Approach," Mathematics, MDPI, vol. 10(19), pages 1-20, October.
    7. Liangliang Liu & Wenqing Zhang, 2022. "Vertical fiscal imbalance and government spending on science and technology in China," Economic Change and Restructuring, Springer, vol. 55(3), pages 1953-1971, August.
    8. Shahbaz, Muhammad & Lean, Hooi Hooi & Shabbir, Muhammad Shahbaz, 2012. "Environmental Kuznets Curve hypothesis in Pakistan: Cointegration and Granger causality," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(5), pages 2947-2953.
    9. Batrancea Larissa & Rathnaswamy Malar Maran & Batrancea Ioan & Nichita Anca & Rus Mircea-Iosif & Tulai Horia & Fatacean Gheorghe & Masca Ema Speranta & Morar Ioan Dan, 2020. "Adjusted Net Savings of CEE and Baltic Nations in the Context of Sustainable Economic Growth: A Panel Data Analysis," JRFM, MDPI, vol. 13(10), pages 1-17, October.
    10. Kivyiro, Pendo & Arminen, Heli, 2014. "Carbon dioxide emissions, energy consumption, economic growth, and foreign direct investment: Causality analysis for Sub-Saharan Africa," Energy, Elsevier, vol. 74(C), pages 595-606.
    11. Bouznit, Mohammed & Pablo-Romero, María del P., 2016. "CO2 emission and economic growth in Algeria," Energy Policy, Elsevier, vol. 96(C), pages 93-104.
    12. Moutinho, Victor & Varum, Celeste & Madaleno, Mara, 2017. "How economic growth affects emissions? An investigation of the environmental Kuznets curve in Portuguese and Spanish economic activity sectors," Energy Policy, Elsevier, vol. 106(C), pages 326-344.
    13. Tianxiang Lv & Xu Wu, 2019. "Using Panel Data to Evaluate the Factors Affecting Transport Energy Consumption in China’s Three Regions," IJERPH, MDPI, vol. 16(4), pages 1-14, February.
    14. Sugiawan, Yogi & Managi, Shunsuke, 2016. "The environmental Kuznets curve in Indonesia: Exploring the potential of renewable energy," Energy Policy, Elsevier, vol. 98(C), pages 187-198.
    15. Mohamed Arouri & Muhammad Shahbaz & Rattapon Onchang & Faridul Islam & Frédéric Teulon, 2014. "Environmental Kuznets Curve in Thailand: Cointegration and Causality Analysis," Working Papers 2014-204, Department of Research, Ipag Business School.
    16. Xi Lin & Yongle Zhao & Mahmood Ahmad & Zahoor Ahmed & Husam Rjoub & Tomiwa Sunday Adebayo, 2021. "Linking Innovative Human Capital, Economic Growth, and CO 2 Emissions: An Empirical Study Based on Chinese Provincial Panel Data," IJERPH, MDPI, vol. 18(16), pages 1-18, August.
    17. Ho, Kung-Cheng & Yan, Cheng & Gozgor, Giray & Gu, Yan, 2024. "Energy related public environmental concerns and intra-firm pay gap in polluting enterprises: Evidence from China," Energy Economics, Elsevier, vol. 130(C).
    18. Amine Ben Amar, 2021. "Economic growth and environment in the United Kingdom: robust evidence using more than 250 years data," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 23(4), pages 667-681, October.
    19. Sudeshna Ghosh, 2019. "Environmental Pollution, Income Inequality, and Household Energy Consumption: Evidence from the United Kingdom," Journal of International Commerce, Economics and Policy (JICEP), World Scientific Publishing Co. Pte. Ltd., vol. 10(02), pages 1-31, June.
    20. Syed Tauseef Hassan & Enjun Xia & Chien-Chiang Lee, 2021. "Mitigation pathways impact of climate change and improving sustainable development: The roles of natural resources, income, and CO2 emission," Energy & Environment, , vol. 32(2), pages 338-363, March.

    More about this item

    Keywords

    Economic growth; Financial system; N2O emissions; CO2 emissions; Domestic credit;
    All these keywords.

    JEL classification:

    • G1 - Financial Economics - - General Financial Markets
    • G2 - Financial Economics - - Financial Institutions and Services
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

    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:spr:jknowl:v:14:y:2023:i:3:d:10.1007_s13132-022-00944-9. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.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.