Vegetation cover, human capital and economic growth: Empirical evidence at the global level and groups of countries using panel data from 77 countries in the years 1990-2015.

Abstract

The objective of this project is to explore the effect produced by vegetation cover and human capital on economic growth in 77 countries using the panel data technique for the period 1990-2015. Using data from the World Bank's World Development Indicators. In order to capture the heterogeneity between the countries by dividing them by income level, we categorized the countries into two groups: lower-middle income and low income. We discovered strong empirical evidence that suggests that the main cause of deforestation in these groups of countries is soil damage that is being done due to agricultural activities, felling of trees, etc. So, to avoid this situation in the countries, there must be trained human capital that in the long term will have more knowledge about the importance of having large extensions of vegetation cover for the environment where they live. The results found in our research showed that the better trained the human capital of a country is, the vegetation cover of that country will be better preserved and then in the long term all this will be reflected in an increase in economic growth.