NEXUS RELATIONSHIP BETWEEN ENVIRONMENTAL QUALITY, FINANCIAL DEVELOPMENT, AND ECONOMIC GROWTH IN JORDAN

Abstract

This study utilizes the Autoregressive Distributed Lag (ARDL) methodology to dynamically investigate the complex association between economic growth, its determinants, and environmental quality in Jordan. It focuses on the intricate relationship between the country's goals of economic progress and the imperative of environmental preservation, the comprehensive analysis encompasses key economic indicators such as GDP, investment, exports, population growth, and energy consumption, utilizing long-term time series data to assess their influence on economic growth. Additionally, environmental quality indicators, including carbon dioxide emissions, air pollution levels, and water quality, are incorporated to unravel their relationships with economic growth, The ARDL technique enables the examination of both short-term and long-term dynamics between these variables, providing valuable insights into the causal relationships between economic growth and environmental quality. This study significantly contributes to our understanding of economic growth in Jordan and its associated environmental consequences, Policymakers can derive insights to inform sustainable development activities, aiding in the crafting of legislation and strategies tailored to promote ecologically responsible economic growth, minimize environmental damage, and enhance overall population well-being in Jordan. The empirical evidence underscores the detrimental impact of carbon dioxide emissions (CO2) on GDP growth, emphasizing the urgency of addressing environmental issues for sustained economic growth.

This research underscores the importance of implementing targeted policies that effectively balance economic growth and environmental conservation to secure Jordan's long-term viability and prosperity