The role of urbanization and industrialization in economic development in the East Asia region

Mehdi Seraj () and Abdulmajeed Tsowa Muhammad ()
Additional contact information
Mehdi Seraj: Near East University
Abdulmajeed Tsowa Muhammad: Near East University

Letters in Spatial and Resource Sciences, 2025, vol. 18, issue 1, No 23, 32 pages

Abstract: Abstract The paper examines the effects of urbanization and industrialization on the carbon intensity of the GDP in the four East Asian selected economies; China, Japan, South Korea, and Mongolia between the period 1990 to 2023. The study is conducted using a panel dataset, utilizing a mixed fixed and random-effects model with the Hausman test to check the model; and panel ARDL estimation to investigate the short-run and long-run nature of the association between key variables; which are; carbon intensity, industrialization, urbanization, renewable energy consumption, human development index, and foreign direct investment. Unit root tests indicate that all variables are integrated of order one and cointegration tests obtain a long-run equilibrium relationship. Findings of the fixed effects model indicate that carbon intensity is decreased by renewable energy consumption, urbanization, and HDI and increased by FDI. The panel ARDL long-run findings confirmed that HDI and renewable energy contributed to a decrease in carbon intensity, whereas industrialization and FDI increased carbon intensity. The paper concludes that even though drivers of economic development affect environmental outcomes differently, human development and clean energy consumption are decisive factors in decreasing carbon intensity. This evidence points to the necessity of concerted policy responses to sustainable development in East Asia.

Keywords: Industrialization; Urbanization; Human development index; Carbon intensity; Renewable energy (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s12076-025-00417-y Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:lsprsc:v:18:y:2025:i:1:d:10.1007_s12076-025-00417-y

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/12076

DOI: 10.1007/s12076-025-00417-y

Access Statistics for this article

Letters in Spatial and Resource Sciences is currently edited by Henk Folmer and Amitrajeet A. Batabyal

More articles in Letters in Spatial and Resource Sciences from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().