TY - JOUR
T1 - The impact of natural resources, human capital, and foreign direct investment on the ecological footprint
T2 - The case of the United States
AU - Zafar, Muhammad Wasif
AU - Zaidi, Syed Anees Haider
AU - Khan, Naveed R.
AU - Mirza, Faisal Mehmood
AU - Hou, Fujun
AU - Kirmani, Syed Ali Ashiq
N1 - Publisher Copyright:
© 2019 Elsevier Ltd
PY - 2019/10
Y1 - 2019/10
N2 - 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.
AB - 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.
KW - Ecological footprint
KW - Economic growth
KW - Foreign direct investment
KW - Human capital
KW - Natural resources abundance
UR - http://www.scopus.com/inward/record.url?scp=85067231695&partnerID=8YFLogxK
U2 - 10.1016/j.resourpol.2019.101428
DO - 10.1016/j.resourpol.2019.101428
M3 - Article
AN - SCOPUS:85067231695
SN - 0301-4207
VL - 63
JO - Resources Policy
JF - Resources Policy
M1 - 101428
ER -