IDEAS home Printed from https://ideas.repec.org/a/eee/reveco/v98y2025ics1059056025001182.html
   My bibliography  Save this article

How do economic growth and unemployment affect green development in Latin America nations?

Author

Listed:
  • Lan, Bo
  • Li, Nan
  • Liu, Tong

Abstract

Despite mounting environmental pressures, the complex interplay between economic dynamics and environmental sustainability in Latin American nations remains insufficiently explored, particularly regarding how economic growth and unemployment influence green development initiatives. This study investigates these relationships using an integrated analytical framework. Drawing on data from 28 Latin American countries spanning 2005–2022, our analysis employs two-way fixed-effects, mediated-effects, and moderated-effects models to reveal several key insights. The results demonstrate that economic growth substantially promotes green development through enhanced technological innovation, whereas rising unemployment impedes environmental progress by undermining social stability. Notably, entrepreneurial activity amplifies the positive impact of economic growth on green development and mitigates the adverse effects of unemployment. The study further reveals asymmetric effects: economic growth exhibits stronger positive influences in economically advanced nations, while unemployment poses more significant barriers to green development in less developed economies. These findings contribute to understanding how socioeconomic factors shape environmental outcomes in developing regions and offer valuable insights for policymakers seeking to balance economic prosperity with environmental sustainability.

Suggested Citation

  • Lan, Bo & Li, Nan & Liu, Tong, 2025. "How do economic growth and unemployment affect green development in Latin America nations?," International Review of Economics & Finance, Elsevier, vol. 98(C).
    • Handle: RePEc:eee:reveco:v:98:y:2025:i:c:s1059056025001182
    DOI: 10.1016/j.iref.2025.103955
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1059056025001182
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.iref.2025.103955?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:reveco:v:98:y:2025:i:c:s1059056025001182. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/620165 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.