IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v17y2025i2p419-d1562314.html
   My bibliography  Save this article

The Influence of Trade, Technology and Economic Growth on Environmental Sustainability in the Gulf Cooperation Countries—New Evidence with the MMQR Method

Author

Listed:
  • Salim Ali Salim Omar

    (Department of Accounting and Finance, University of Mediterranean Karpasia, Nicosia 99138, Cyprus)

  • Wagdi M. S. Khalifa

    (Department of Accounting and Finance, University of Mediterranean Karpasia, Nicosia 99138, Cyprus)

  • Ponle H. Kareem

    (Department of Business, Cyprus Health and Social Sciences University, Nicosia 99138, Cyprus)

Abstract

The Gulf Cooperation Countries are rich in natural resources such as oil, yet they have serious environmental problems. These countries are also located in regions where there is abundance of sunshine, yet are not capitalizing on the use of solar energy—a clean source of fuel. They heavily rely on fossil fuels that are cheap and readily available in the region, causing serious environmental problems. This research investigates the role of trade, technology, and economic growth in improving environmental sustainability in this region; hence, covering the gap existing in the literature on how this region can address the problem of environmental sustainability. This research uses annual data of the Gulf Cooperation Countries for the period 1990 to 2022 and analyses it with the Methods of Moments Quantile Regression. The major findings presented in the research show the importance of technological innovations in ensuring the eradication of environmental deterioration. Technological innovation is observed to reduce environmental problems by 1.94 to 3.11 magnitude. The results also show that trade openness and natural resources rents fundamentally lower environmental deterioration in the long term by 0.02, and 0.05 to 0.09 magnitudes, respectively. However, the results show that economic growth, globalization, and financial development are harmful to environmental sustainability in this region. These factors tend to raise environmental damage by 0.14 to 0.24, 0.34 to 0.43, and 9.2 to 5.74 units on average, respectively. This research gives key policies towards advancing environmental sustainability through trade openness, natural resources rents, and technological innovation in the Gulf Cooperation Countries.

Suggested Citation

  • Salim Ali Salim Omar & Wagdi M. S. Khalifa & Ponle H. Kareem, 2025. "The Influence of Trade, Technology and Economic Growth on Environmental Sustainability in the Gulf Cooperation Countries—New Evidence with the MMQR Method," Sustainability, MDPI, vol. 17(2), pages 1-15, January.
    • Handle: RePEc:gam:jsusta:v:17:y:2025:i:2:p:419-:d:1562314
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/17/2/419/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/17/2/419/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Hashem Pesaran, M. & Yamagata, Takashi, 2008. "Testing slope homogeneity in large panels," Journal of Econometrics, Elsevier, vol. 142(1), pages 50-93, January.
    2. M. Hashem Pesaran, 2007. "A simple panel unit root test in the presence of cross-section dependence," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 22(2), pages 265-312.
    3. Gene M. Grossman & Alan B. Krueger, 1995. "Economic Growth and the Environment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 110(2), pages 353-377.
    4. Beck, Thorsten & Demirguc-Kunt, Asli & Levine, Ross, 1999. "A new database on financial development and structure," Policy Research Working Paper Series 2146, The World Bank.
    5. Afolabi, Joshua Adeyemi, 2023. "Natural resource rent and environmental quality nexus in Sub-Saharan Africa: Assessing the role of regulatory quality," Resources Policy, Elsevier, vol. 82(C).
    6. Ali, Mumtaz & Joof, Foday & Samour, Ahmed & Tursoy, Turgut & Balsalobre-Lorente, Daniel & Radulescu, Magdalena, 2023. "Testing the impacts of renewable energy, natural resources rent, and technological innovation on the ecological footprint in the USA: Evidence from Bootstrapping ARDL," Resources Policy, Elsevier, vol. 86(PA).
    7. Bashir, Muhammad Adnan & Dengfeng, Zhao & Filipiak, Beata Zofia & Bilan, Yuriy & Vasa, László, 2023. "Role of economic complexity and technological innovation for ecological footprint in newly industrialized countries: Does geothermal energy consumption matter?," Renewable Energy, Elsevier, vol. 217(C).
    8. Im, Kyung So & Pesaran, M. Hashem & Shin, Yongcheol, 2003. "Testing for unit roots in heterogeneous panels," Journal of Econometrics, Elsevier, vol. 115(1), pages 53-74, July.
    9. Mathiesen, Brian Vad & Lund, Henrik & Karlsson, Kenneth, 2011. "100% Renewable energy systems, climate mitigation and economic growth," Applied Energy, Elsevier, vol. 88(2), pages 488-501, February.
    10. Tan, Qingmei & Yasmeen, Humaira & Ali, Sharafat & Ismail, Hina & Zameer, Hashim, 2023. "Fintech development, renewable energy consumption, government effectiveness and management of natural resources along the belt and road countries," Resources Policy, Elsevier, vol. 80(C).
    11. Frees, Edward W., 1995. "Assessing cross-sectional correlation in panel data," Journal of Econometrics, Elsevier, vol. 69(2), pages 393-414, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ozcan, Burcu, 2013. "The nexus between carbon emissions, energy consumption and economic growth in Middle East countries: A panel data analysis," Energy Policy, Elsevier, vol. 62(C), pages 1138-1147.
    2. Ronghui Xie & Shengjie Zhang, 2024. "Re†examining the impact of global foreign direct investment (FDI) inflows on haze pollution—considering the moderating mechanism of environmental regulation," Energy & Environment, , vol. 35(6), pages 3186-3209, September.
    3. Francisco García-Lillo & Eduardo Sánchez-García & Bartolomé Marco-Lajara & Pedro Seva-Larrosa, 2023. "Renewable Energies and Sustainable Development: A Bibliometric Overview," Energies, MDPI, vol. 16(3), pages 1-22, January.
    4. Prempeh Kwadwo Boateng & Frimpong Joseph Magnus & Yeboah Samuel Asuamah, 2024. "The dynamics of financial development, environmental degradation, economic growth and population health in the Economic Community of West African States," Environmental & Socio-economic Studies, Sciendo, vol. 12(2), pages 13-27.
    5. Khan, Yasir & Hassan, Taimoor & Guiqin, Huang & Nabi, Ghulam, 2023. "Analyzing the impact of natural resources and rule of law on sustainable environment: A proposed policy framework for BRICS economies," Resources Policy, Elsevier, vol. 86(PA).
    6. Dogan, Eyup & Altinoz, Buket & Madaleno, Mara & Taskin, Dilvin, 2020. "The impact of renewable energy consumption to economic growth: A replication and extension of Inglesi-Lotz (2016)," Energy Economics, Elsevier, vol. 90(C).
    7. Schneider, Nicolas & Strielkowski, Wadim, 2023. "Modelling the unit root properties of electricity data—A general note on time-domain applications," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 618(C).
    8. Zhao, Wen-Xuan & Samour, Ahmed & Yi, Kefu & Al-Faryan, Mamdouh Abdulaziz Saleh, 2023. "Do technological innovation, natural resources and stock market development promote environmental sustainability? Novel evidence based on the load capacity factor," Resources Policy, Elsevier, vol. 82(C).
    9. Huang, Lingyun & Zou, Yanjun, 2020. "How to promote energy transition in China: From the perspectives of interregional relocation and environmental regulation," Energy Economics, Elsevier, vol. 92(C).
    10. Mehmet Demiral & Özkan Haykır & Emine Dilara Aktekin-Gök, 2024. "Environmental pollution effects of economic, financial, and industrial development in OPEC: comparative evidence from the environmental Kuznets curve perspective," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(10), pages 24905-24936, October.
    11. Tong, Tingting & Yu, T. Edward, 2018. "Transportation and economic growth in China: A heterogeneous panel cointegration and causality analysis," Journal of Transport Geography, Elsevier, vol. 73(C), pages 120-130.
    12. Khalid, Usman & Shafiullah, Muhammad, 2021. "Financial development and governance: A panel data analysis incorporating cross-sectional dependence," Economic Systems, Elsevier, vol. 45(2).
    13. Nwani, Chinazaekpere & Adams, Samuel, 2021. "Environmental cost of natural resource rents based on production and consumption inventories of carbon emissions: Assessing the role of institutional quality," Resources Policy, Elsevier, vol. 74(C).
    14. Tiba, Sofien & Belaid, Fateh, 2020. "The pollution concern in the era of globalization: Do the contribution of foreign direct investment and trade openness matter?," Energy Economics, Elsevier, vol. 92(C).
    15. Saidi, Hichem & El Montasser, Ghassen & Ajmi, Noomen, 2018. "Renewable Energy, Quality of Institutions and Economic Growth in MENA Countries: a Panel Cointegration Approach," MPRA Paper 84055, University Library of Munich, Germany.
    16. Zhang, Qianxiao & Shah, Syed Ale Raza & Yang, Ling, 2022. "Modeling the effect of disaggregated renewable energies on ecological footprint in E5 economies: Do economic growth and R&D matter?," Applied Energy, Elsevier, vol. 310(C).
    17. Albulescu, Claudiu Tiberiu & Tiwari, Aviral Kumar & Yoon, Seong-Min & Kang, Sang Hoon, 2019. "FDI, income, and environmental pollution in Latin America: Replication and extension using panel quantiles regression analysis," Energy Economics, Elsevier, vol. 84(C).
    18. Li, Yi & Liu, Christy Ying Ni & Lao, Ut & Dang, Jiangtong, 2024. "Navigating the path to environmental sustainability: Exploring the role of fintech, natural resources and green energy in Belt and Road countries," Resources Policy, Elsevier, vol. 88(C).
    19. Ali, Qamar & Yaseen, Muhammad Rizwan & Anwar, Sofia & Makhdum, Muhammad Sohail Amjad & Khan, Muhammad Tariq Iqbal, 2021. "The impact of tourism, renewable energy, and economic growth on ecological footprint and natural resources: A panel data analysis," Resources Policy, Elsevier, vol. 74(C).
    20. Soto, Gonzalo H & Martinez-Cobas, Xavier, 2024. "Green energy policies and energy poverty in Europe: Assessing low carbon dependency and energy productivity," Energy Economics, Elsevier, vol. 136(C).

    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:gam:jsusta:v:17:y:2025:i:2:p:419-:d:1562314. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.