Title: Output, environmental pollution and health nexus in Vietnam: an estimation of simultaneous model with panel data

Authors: Ha Hai Duong; Kankesu Jayanthakumaran

Addresses: Faculty of Business, Posts and Telecommunications Institute of Technology, Km10 Nguyen Trai Road, Hanoi, Vietnam ' Faculty of Business, School of Accounting, Economics and Finance, University of Wollongong, Northfields Ave., Wollongong, NSW, 2522, Australia

Abstract: This paper estimates the provincial data of carbon dioxide emissions in 60 provinces in Vietnam for the years 2000 to 2010, and investigates the simultaneous relationships between output, environmental pollution and health in Vietnam. By applying the two-step system-dynamic GMM, lagged effects, endogeneity, heteroscedasticity, and autocorrelation for the variables have been addressed. The results show that increase in output causes an increase in the emissions. Meanwhile, an increase in emissions causes bad population health in the Mekong River Delta region, one of the highest tuberculosis incidence regions in Vietnam. The results also demonstrate that population health is an important input into economic growth in Vietnam. Better population health leads to increased output. Findings have policy implications for health, pollution and investment related issues for Vietnam.

Keywords: environmental pollution; GDP; carbon dioxide emissions; health; simultaneous equations model; system-dynamic GMM; Vietnam.

DOI: 10.1504/IJBD.2018.097405

International Journal of Bonds and Derivatives, 2018 Vol.4 No.1, pp.10 - 32

Received: 09 Jan 2018
Accepted: 15 May 2018
Published online: 21 Jan 2019 *

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