DEFORESTATION, ECONOMIC GROWTH, POPULATION, POVERTY, INCOME AND NATIONAL DEBT: A CROSS COUNTRY ANALYSIS

Abstract

This study will examine a multiple regression analysis of the relationship between the rate of deforestation, economic, institutional and social variables in a cross-section of countries. This study will use OLS (Ordinary Least Square) regression and correlation analysis to develop strong model of how the variation of independent variable explain the dependent variable (deforestation). The suggested independent variable in this study are rural population growth, human poverty index, corruption perception index, external national debt, growth of GDP and GDP per capita. Based on the result of multiple regression analysis, a conclusion can be drawn, that the model is very weak to explain the rate of deforestation. One of the answer for this problem is the p- value of ovtest is low which is 0,034, it is lower than 5%, meaning that there are some important variables are not included in this model. Another reason is because of hettest value is low as well which is 0.023, it is lower than 5%, indicate that the heteroskedasticity is present. Key words: rural population growth, human poverty index, corruption perception index, external national debt, growth of GDP and GDP per capita.