ABSTRACT
South Asian economies mostly enjoyed rapid growth and a reduction in poverty until the onset of the global financial crisis in 2008. The vigorous process of urbanisation, industrialisation, economic growth and high population pressure, post-2012, resulted in deterioration of air quality at an alarming rate and adverse climatic changes in these economies. A major structural change in the form of promoting manufacturing-led growth with inadequate investment in pollution control mechanisms in South Asian countries is largely causative in this regard. Several theoretical studies have been carried out on the interrelationship between climate change and economic growth. Given this background, a Cobb-Douglas model is developed in this chapter to analyze the nature and degree of correlation among economic growth, pollution and migration in South Asian countries. The chapter suggests that higher level of economic growth exerts damaging impact on climatic conditions. It also confirms that immigration has a positive effect on economic growth, thereby instigating a higher level of pollution. The theoretical relationship is also supported by empirical findings in a panel data framework. A fixed-effect regression model has been formulated in this chapter with external debt stock as a control variable. This chapter will be a reference for policy-makers to initiate policies that advocate sustainable development and synchronise environmental protection and economic growth.
