The impact of natural resources, human capital, and foreign direct investment on the ecological footprint: The case of the United States

By Muhammad Wasif Zafar, S. Zaidi, Naveed R. Khan, F. Mirza, Fujun Hou, S. Kirmani. Resources policy, 2019

751 citations recorded by the source corpus.

Abstract This study explores the effect of the amounts of natural resources, human capital, and foreign direct investment on the ecological footprint in the presence of energy consumption and economic growth using US data from 1970 to 2015. We use the Zivot-Andrews unit root method to check the stationary properties of data series, along with structural breaks and employ an Auto Regressive Distributive Lag (ARDL) model to estimate the short-run and long-run elasticities among the variables. Our findings suggest that economic growth and energy consumption have negative relationships with the ecological footprint. Natural resources and human capital are helpful in curtailing ecological footprint, as is foreign direct investment (FDI). The results of Granger causality show bidirectional causality between energy consumption and the ecological footprint and between economic growth and the ecological footprint, while unidirectional causality runs from natural resources to the ecological footprint and from human capital to natural resources. The US must attract more FDI and human capital from other countries to ensure that established companies and new firms can innovate swiftly in support of the quality of life and sustainable development.

Subfields: Economics and Econometrics, Environmental Engineering, Renewable Energy, Sustainability and the Environment

View Paper: https://www.semanticscholar.org/paper/7107e375f28824365a0fb7fec9faadaae5984b99

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Citations in the corpus

Natural resources abundance, economic globalization, and carbon emissions: Advancing sustainable development agenda (2021, methodology): “This study applied the Cup-FM introduced by Bai and Kao (2006) and the Cup-BC estimation method for robustness Bai et al. (2009) by following recent studies of (Ahmed et al., 2020b; Ulucak & Bilgili, 2018; Zafar et al., 2019a).”
Renewable Energy Use and Ecological Footprints Mitigation: Evidence from Selected South Asian Economies (2021, background): “[90] reported similar feedback causations between FDI inflows and EF in the United States context.”
Income inequality, human capital, natural resource abundance, and ecological footprint in ECOWAS member countries (2021, neutral): “Therefore, at the initial stages of economic development humans use more energy including natural resources - inefficient industrialization and neglect its environmental consequences, which leads to scale effect s and lethal pollution (Zafar et al., 2019).”