1. Relationship of sustainable economic development and environmental performance via moderating effect of governance in developing and developed countries
- Author
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Tan, Chee Leong and Tan, Chee Leong
- Abstract
Economic outcomes and expectations may differ between developing and developed countries, primarily due to different stages of economic development. Nonetheless, governments of developing and developed countries alike are focusing on sustainable economic development (SED) to ensure self-sufficiency in food, total employment, and financial stability without relying on foreign aid. To achieve these objectives, governments continue to exploit natural resources via unsustainable industrialisation, causing deforestation and air and water pollution, which ultimately destroys the natural ecosystem. Unfortunately, the general perception is that environmental conservation will not bring any commercial benefits. Instead, conservation relies on the government’s or institution’s budget to maintain the order of ecology and in return minimise environmental impacts. Though some empirical studies argue that corporate environmental efforts bring in good revenue through tourism spending, environmentally friendly industries, green-label industries, and environment-conscious investments, both developing and developed countries continue to emphasise economic development rather than environmental performance. Therefore, this study aimed to investigate the relationship of sustainable economic development (SED) and environmental performance (EP) via moderating effect of country governance (CG) in developing and developed countries. The underpinning theories adopted in this study were the Environmental Kuznets Curve (EKC), Ecological Modernisation Theory (EMT), Neoliberal Environmental Governance (NEG), and Great Moderation (GM). Past studies on the nexus between SED, EP, and CG have focused on the company or institution level. This study, in contrast, addressed the country level in terms of developing and developed countries. Data on SED was obtained from the World Bank and International Monetary Fund (IMF) database, which included Gross Domestic Product (GDP), Foreign Direct Investment (F
- Published
- 2022