The Relationship between Economic Growth and Environmental Pollution in China: An Arellano–Bond Linear Dynamic PanelData Based Approach

ABSTRACT: The mandate and duty of policy makers is to implement policies that are supposed to ensure that the needs its citizens are meet. This could be in the form of infrastructural development, economic growth, job creation etc. However, in the process of meeting these needs in the form of economic growth, the quality of the environment could be compromised and hence the need for environmental depletion to be considered an important issue in the process of economic growth. Therefore, this process of development has to be carefully achieved with the thoughts of protecting the interest of the people and environment. This paper is aimed at investigating the relationship between economic growth and environmental pollution in china. The Arellano– Bond linear dynamic panel-data estimation model was used to examine the influence of economic growth environmental pollution in China from 1996 to 2016. The results indicated that presence of Sulphur dioxide emission which has a negative impact on the health status of the population in the long-run.
KEYWORD: Environmental Pollution; Economic Growth, Gross Domestic Product; Foreign Direct Investment; China