Exploring Economic Growth and Clean Fuel Technology: a Dumitrescu-Hurlin Approach

Abstract

Objective: This research aims at exploring the relationship between economic growth and sustainable technology in 19 countries of G20 members. Theoretical Framework: In the Porter Hypothesis explained that in a regulations of environment will encourage innovation and improve economic performance. According to Porter, well-designed environmental standard can stimulate innovation and bring economic benefits such as increased competitiveness and efficiency Method: The research takes the data sourced from the World Bank and uses Pairwise Dumitrescu-Hurlin Panel Causality as the analytic tool. Results and Discussion: The results of research indicate that there is a causal relationship from ABB to GDP, but not vice versa. This means that the changes in ABB variable can be used to predict the changes in GDP variable, but not vice versa. Research Implications: The application of clean technology will increase the production efficiency and then will increase the economic output. This research contributes to the development of global policies that drive the balanced and environmentally-friendly growth in the whole world. Originality/Value: This research marks a novelty by applying the Pairwise Dumitrescu-Hurlin Panel Causality analysis tool, which allows for a deeper understanding of the causal relationship between economic growth and technological development in G20 countries. While most previous research limit themselves to simple causality analysis, this research details the dynamics of interactions among these factors.