Impact of Entrepreneurship and Globalization on Environment in Developed Countries: Environmental Kuznets Curve Approach
Keywords:
Key words: Entrepreneurship, Globalization, EKC, FGLS, PCSE.Abstract
Using the Environmental Kuznets hypothesis (EKC), this paper seeks to investigate the
impact of entrepreneurship and globalization on CO2 emissions. Using static panel data
methodology, this research provides the evaluation of EKC specifications for nineteen developed
countries from 2001 to 2019. The estimation results of the Feasible Generalized Least Squares
(FGLS) model and the Panel Corrected Standard Error (PCSE) model generated the same result as
the validity of the EKC hypothesis, indicating that environmental pollution is associated with the
economic growth in an inverted N-letter shape, taking into account entrepreneurship and
globalization. Entrepreneurship increases CO2 emissions in developed countries, whereas
globalization has a beneficial impact on the environment.
