The impact of economic globalization on biofuel in developing countries

Abstract

Over recent years, globalization has become the most rapidly developing and most influential aspect for economic growth in developing countries. As developing countries accelerate the pace of globalization, it pops up a question whether the nature of biofuel production is growing due to ongoing globalization. Given that, this paper aim to examine the impact of globalization on biofuel in panel data of 50 developing countries for the period from 2012 to 2016. The panel estimation results showed that economic globalization has a positive effect on biofuel production, and the evidence is robust to the several robustness checks. We, therefore, suggests that encouraging the economic aspect of globalization increase the consumption of biofuels, thereby reducing the harmful environmental impacts.

Keywords

• Biofuel
• Economic globalization
• Panel estimation