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

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.