Factors that affect Green GDP in 5 world’s greenest countries
Keywords:
Green GDP, World’s greenest countries, Economic factorsAbstract
This study aims to identify the factors affecting green GDP in the world's greenest countries including Sweden, Denmark, United Kingdom, Finland and Switzerland over period 2000-2020. Estimate by panel data regression fixed effects model. The results show significant variables that are exchange rate, foreign direct investment, population and the labor force have positive effects on green GDP, while unemployment has negative effects. However, the exchange rate has a most positive effect. On the other hand, foreign direct investment has a less positive effect on green GDP than expected. So, in developed countries governments should have investment policies that focus on green investment for environmentally friendly and sustainable in the long term.
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