Browsing by Author "Carneiro, Maria Margarida Monteiro"
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- The role of natural capital and economic openness in sustainable economic developmentPublication . Carneiro, Maria Margarida Monteiro; Afonso, Tiago Jorge Lopes; Marques, António Manuel CardosoSustainable economic development makes it possible to study the economy of a country as a whole, as it encompasses social parameters, environmental parameters, and economic parameters. Natural capital allows the environmental parameters of an economy to be studied, since it is characterized by encompassing all the natural resources, whether renewable natural resources or non-renewable natural resources, that economies have at their disposal. Economic openness facilitates the study of economic parameters, as it is characterized by trade between the various world economies. This study analyzes the role of natural capital and economic openness in sustainable economic development for 28 OECD countries. However, a comparison will be made of the results obtained for sustainable economic development with the results obtained for economic growth. These countries were selected because they are all developed and homogeneous countries, and also belong to a world organization that is concerned with economic development, therefore, they share many characteristics in common, such as common policies, future goals and moral values, this allows the results obtained not to be different. The study presents a dynamic panel, with annual data and a time horizon from 1995 to 2018. Since the study is composed of stationary variables in first differences and cointegrated with each other, the DOLS, FOLS and PMG estimators were used. These estimators allow the study of long-term relationships; the PMG estimator has the particularity of allowing the study of both long-term and short-term relationships. The results indicate that natural capital has long-term relationships with sustainable economic development, except for fossil energy, which did not show long-term relationships. Natural capital showed no short-term relationship with sustainable economic development. It was possible to verify in the results the existence of long-term relationships for all variables of natural capital to economic growth. However, as for the short-term relationships only two variables show a relationship with economic growth. As far as economic openness is concerned, there is a long-term relationship for both sustainable economic development and economic growth by the remaining variables. Looking at the short-term relationships, only three variables of economic openness show a relationship with economic growth, with sustainable economic development no variable does. Thus, it is assumed that the OECD countries show positive signs for optimal results in the future with regard to economic development. Since there is a long-term relationship between economic openness and sustainable economic development, the results showed that fossil energy has no impact on sustainable economic development, which was already expected. In order for OECD countries to perform better in sustainable economic development it is suggested that they stop using, and if that is not possible, reduce their consumption of fossil resources.