( Biodiversity and Economic Growth: A Cross -Country (with Emphasis on Developing Countries

Abstract

In this study an attempt has been made to empirically examine the relationship between biodiversity and economic growth using indicators of species diversity and income per capita as proxies for biodiversity and economic growth, respectively.Also the effects of agricultural value added as a percentage of GDP, trade freedom index, exchange rate, population, percantage of land developed for agriculture, percentage of protected land area and climate variables were studied. For this study, utilizes data for 121 countries on 2002, that gathered of World Bank and FAO sites. The results show that increase income per capita to cause decrease species number, so decrease biodiversity. Increase agricultural value added, to cause decrease species diversity and biodiversity. This variable, specially are significanct on decrease biodiversity for developing countries. Increases trade freedom index and exchange rate to cause decrease biodiversity. Population has a significant positive effect on biodiversity, that sign of population coefficient is unexpected. Increase percantage of land developed for agriculture, to cause decrease biodiversity. Increase percentage of protected land area to cause, improvement biodiversity. Climate dummy variable has a significant positive effect on biodiversity. So in equatorial and tropical regions are more, mammals, birds and plants species diversity and number. Also observed, Environmental Kuznets Curve for developed countries but didn t observed for developing countries. Therefor turning point exist for developed countries but there is not for developing countries. Therefore, in the developing countries, environmental policy must be applied to improve biodiversity

Keywords