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We examined the applicability of the Export-Led Growth hypothesis for Zanzibar using annual time series data during the period of 1985-2016. The estimation results obtained from the cointegration test and Granger Causality test within the framework of a Vector Autoregressive (VAR) model supported the Export-Led Growth hypothesis for Zanzibar. Our results indicate that the hypothesis causes economic growth and the existing of long-run relationship between clove export trade and economic growth. In addition, analysis of Impulse Response Function (IRF) suggests that a sudden economic growth rate and an increase in clove export positively impact others with exception to labour. However, the sudden increase in share of clove export will cause adverse effect to economic growth rate.

Aims: This study examined the short run and long run dynamic relationship between economic growth and environmental pollution in Brunei. We adoptedAuto Regressive Distributed Lag (ARDL) model to scrutinize the existence of the Environmental Kuznets Curve (EKC) among the studying variables by using time series data cover the period of 1974 to 2014. Methodology: The ARDL bound test revealed the existence of long-run relationship among the integrated variables when CO2 chosen as a dependent variable. Results: The results support the existences of EKC hypotheses in the long-run whereas in the short-run an inverted U-shaped curve was not confirmed between GDP and CO2 in Brunei. The results of Granger causality based on VECM analysis have shown unidirectional causality runs from economic growth to CO2 in the short run. Further analysis through stability test indicates the coefficients in the model are stable and do not suffers with structural break within the time taken in the study. Conclusion: The government of Brunei should proceed to target the sustainable means of production, which has an environmental friendly and consumes less energy to enhance economic growth and maintain environmental quality in the long run.

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