Does Natural resource dependency impede sustainable development? Exploring the non-linear consequence of economic complexity

Yufei Cong and Chunhong Ren

Resources Policy, 2023, vol. 85, issue PB

Abstract: Environmental sustainability is paramount for developed and developing countries to accomplish their global commitment for climate actions. Particularity, emerging countries must prioritize endeavors to curtail the factors that create hurdles for the practices align with the Paris climate change agreement. In the same purists, this study unveil the influence of natural resource rent, economic complexity, and economic growth on the ecological footprint in emerging seven (E7) countries from 1995 to 2020. It applies Non-linear ARDL model to integrate non-linearity and address structure changes in data. The findings reveal that the positive shocks in natural resource rent, economic growth, and economic complexity positively influence the ecological footprint in both the long and short runs. Whereas the negative shocks of these variables significantly enhance the environmental sustainability in E7 countries. However, the short-term influence of negative shocks of economic complexity and economic growth are insignificant. These finding implied sustainable transformation of industries and effective utilization of mineral resources.

Keywords: Economic complexity; Natural resources; Ecological footprint; Sustainable development (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jrpoli:v:85:y:2023:i:pb:s0301420723006839

DOI: 10.1016/j.resourpol.2023.103972

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