The Natural Environment and Investment in Economic Growth: From the Perspective of the Prosperity of Developed and Developing Countries

Ximena Morales-Urrutia (), Aracelly Núñez-Naranjo, Rubén Nogales-Portero and Evelin Yanez-Toapanta
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Ximena Morales-Urrutia: Facultad de Contabilidad y Auditoría, Universidad Técnica de Ambato, Ambato 180206, Ecuador
Aracelly Núñez-Naranjo: Centro de Investigaciones de Ciencias Humanas y de la Educación (CICHE), Facultad de Ciencias de la Educación, Universidad Tecnológica Indoamérica, Ambato 180103, Ecuador
Rubén Nogales-Portero: Facultad de Ingeniería en Sistemas, Electrónica e Industrial, Universidad Técnica de Ambato, Ambato 180206, Ecuador
Evelin Yanez-Toapanta: Facultad de Contabilidad y Auditoría, Universidad Técnica de Ambato, Ambato 180206, Ecuador

Sustainability, 2025, vol. 17, issue 12, 1-15

Abstract: This research aims to identify the environmental factors that affect economic growth in developed and developing countries using a panel data regression model. In advanced economies, restrictions on international investment, emissions, the use of natural resources, and environmental preservation efforts stand out as influential variables. In contrast, in developing countries, contract enforcement, emissions, and exposure to air pollution are key determinants of economic performance. This study concludes that the natural environment plays a more significant role in the economic growth of developed countries, due to their greater capacity to implement sustainability policies. In developing countries, institutional conditions and environmental management are more relevant, highlighting the need to strengthen legal frameworks and invest in mitigation measures to achieve sustainable economic development.

Keywords: natural environment; gross domestic product (GDP); G7; investment environment (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
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