Deforestation, Economic Growth, Population, Poverty, Income and National Debt: a Cross Country Analysis

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