TY - JOUR
T1 - Do natural resources, urbanization, and value-adding manufacturing affect environmental quality? Evidence from the top ten manufacturing countries
AU - Khan, Irfan
AU - Hou, Fujun
AU - Le, Hoang Phong
AU - Ali, Syed Ahtsham
N1 - Publisher Copyright:
© 2021 Elsevier Ltd
PY - 2021/8
Y1 - 2021/8
N2 - Environmental pollutants have become a problem throughout the world. In the past few years, investigations of ecological footprints and their determining factors have been at the core of debate among policymakers. However, some of the crucial determinants of ecological footprints, such as the value-adding manufacturing and the merchandise trade have not been sufficiently covered in the literature. Manufacturing and the merchandise trade provide substantial economic growth opportunities but are frequently associated with high pollution and environmental degradation. We investigate the impact of natural resources, urbanization, value-adding manufacturing, and the merchandise trade on the ecological footprints and economic growth of the top ten manufacturing countries using data from 1970 to 2016. We designed comprehensive empirical analyses and applied advanced econometric methodologies to show that value-adding manufacturing, the merchandise trade, and urbanization are positively associated and natural resources are negatively associated with countries' ecological footprints and economic growth. Our results suggest that urbanization, value-adding manufacturing, and the merchandise trade deteriorate environmental quality while simultaneously stimulating economic growth. Policymakers are encouraged to address sustainable manufacturing and trade policies through commercial exchanges, to generate fair trade, to protect natural resources, and to address urbanization to secure a sustainable future. The study's limitations and directions for future research are discussed.
AB - Environmental pollutants have become a problem throughout the world. In the past few years, investigations of ecological footprints and their determining factors have been at the core of debate among policymakers. However, some of the crucial determinants of ecological footprints, such as the value-adding manufacturing and the merchandise trade have not been sufficiently covered in the literature. Manufacturing and the merchandise trade provide substantial economic growth opportunities but are frequently associated with high pollution and environmental degradation. We investigate the impact of natural resources, urbanization, value-adding manufacturing, and the merchandise trade on the ecological footprints and economic growth of the top ten manufacturing countries using data from 1970 to 2016. We designed comprehensive empirical analyses and applied advanced econometric methodologies to show that value-adding manufacturing, the merchandise trade, and urbanization are positively associated and natural resources are negatively associated with countries' ecological footprints and economic growth. Our results suggest that urbanization, value-adding manufacturing, and the merchandise trade deteriorate environmental quality while simultaneously stimulating economic growth. Policymakers are encouraged to address sustainable manufacturing and trade policies through commercial exchanges, to generate fair trade, to protect natural resources, and to address urbanization to secure a sustainable future. The study's limitations and directions for future research are discussed.
KW - Ecological footprint
KW - Economic growth
KW - Natural resources
KW - Top 10 manufacturing countries
KW - Urbanization
KW - Value-adding manufacturing
UR - http://www.scopus.com/inward/record.url?scp=85104654779&partnerID=8YFLogxK
U2 - 10.1016/j.resourpol.2021.102109
DO - 10.1016/j.resourpol.2021.102109
M3 - Article
AN - SCOPUS:85104654779
SN - 0301-4207
VL - 72
JO - Resources Policy
JF - Resources Policy
M1 - 102109
ER -