International Journal For Multidisciplinary Research

E-ISSN: 2582-2160   •   Impact Factor: 9.24

A Widely Indexed Open Access Peer Reviewed Multidisciplinary Bi-monthly Scholarly International Journal

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Economic Growth and Environmental Sustainability in Developed Nations: A Panel Data Analysis

Author(s) Mr. Kushal Singh, Prof. Sanjeet Singh
Country India
Abstract This study examines the long-standing debate over whether economic expansion and greater trade integration support or undermine environmental sustainability in developed economies. Spanning the period from 1975 to 2024, this study employs panel data techniques to examine the evolving relationships between income growth, trade activity, and carbon emissions. The central concern is to understand whether the pursuit of higher GDP and increased openness to global markets contributes to cleaner production and greener technologies, or whether it continues to be associated with rising ecological pressures. To address this question, the analysis examines not only overall correlations but also the dynamic relationships among the variables, distinguishing between short-run adjustments and long-run trends. Advanced panel econometric approaches are employed to test for causality and to capture how trade and growth interact in shaping patterns of environmental quality. The results suggest that the connections are neither linear nor uniform; while some phases of growth and trade expansion appear to foster improvements in sustainability, others coincide with significant increases in emissions. These findings carry important implications for policy in high-income countries. They point to the need for carefully designed frameworks that allow economies to benefit from trade and growth while at the same time meeting international climate commitments. In practical terms, this research reflect the role of green trade policies, climate regulation, and forward-looking strategies in reconciling economic and environmental goals.
Keywords : Economic Growth, Environmental Sustainability, CO₂ Emissions, Trade Growth, Panel Data, Developed Nations.
Published In Volume 7, Issue 5, September-October 2025
Published On 2025-10-31
DOI https://doi.org/10.36948/ijfmr.2025.v07i05.59195
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E-ISSN 2582-2160
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