IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v16y2024i3p1037-d1326402.html

Examining the Impact of External Debt, Natural Resources, Foreign Direct Investment, and Economic Growth on Ecological Sustainability in Brazil

Author

Listed:
  • Saleem Haji Saleem

    (Faculty of Administrative and Economics, Near East University, Nicosia 99138, Turkey)

  • Dildar Haydar Ahmed

    (Faculty of Administrative and Economics, Near East University, Nicosia 99138, Turkey
    Department of Economic Science, College of Administration and Economics, University of Zakho, Zakho P.O. Box 12, Iraq)

  • Ahmed Samour

    (Accounting Department, Dhofar University, Salalah 211, Oman)

Abstract

Although some recent papers have explored the impacts of external debt on environmental sustainability, the impacts of external debt on the load capacity factor (LCF) have been ignored. In this regard, this work aims to examine the influence of renewable energy, FDI, and external debt on the LCF in Brazil over the period 1970–2021; this indicator implies the country’s strength to promote the population based on current lifestyles. This paper uses the novel augmented autoregressive distributive lag (A-ARDL) technique. The findings from the A-ARDL show that renewable energy positively influenced ecological sustainability by promoting the LCF by 0.451% in the short run and 0.038% in the long run. In addition, the findings show that an increase in the rent of natural resources promotes the LCF. In contrast, the outcomes illustrate that an increase in the external debt led to an adverse impact on ecological sustainability by decreasing the level of LCF by 0.093% in the short run and 0.162% in the long run. Furthermore, the findings demonstrated that FDI negatively affects the ecological sustainability quality by reducing the LCF in the country. The study provides beneficial recommendations to policymakers in Brazil for achieving sustainable development in Brazil.

Suggested Citation

  • Saleem Haji Saleem & Dildar Haydar Ahmed & Ahmed Samour, 2024. "Examining the Impact of External Debt, Natural Resources, Foreign Direct Investment, and Economic Growth on Ecological Sustainability in Brazil," Sustainability, MDPI, vol. 16(3), pages 1-17, January.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:3:p:1037-:d:1326402
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/16/3/1037/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/16/3/1037/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Park, Joon Y, 1992. "Canonical Cointegrating Regressions," Econometrica, Econometric Society, vol. 60(1), pages 119-143, January.
    2. Anindya Banerjee & Juan Dolado & Ricardo Mestre, 1998. "Error‐correction Mechanism Tests for Cointegration in a Single‐equation Framework," Journal of Time Series Analysis, Wiley Blackwell, vol. 19(3), pages 267-283, May.
    3. Zhao, Wen-Xuan & Samour, Ahmed & Yi, Kefu & Al-Faryan, Mamdouh Abdulaziz Saleh, 2023. "Do technological innovation, natural resources and stock market development promote environmental sustainability? Novel evidence based on the load capacity factor," Resources Policy, Elsevier, vol. 82(C).
    4. M. Hashem Pesaran & Yongcheol Shin & Richard J. Smith, 2001. "Bounds testing approaches to the analysis of level relationships," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 16(3), pages 289-326.
    5. Robert McNown & Chung Yan Sam & Soo Khoon Goh, 2018. "Bootstrapping the autoregressive distributed lag test for cointegration," Applied Economics, Taylor & Francis Journals, vol. 50(13), pages 1509-1521, March.
    6. Baumol,William J. & Oates,Wallace E., 1988. "The Theory of Environmental Policy," Cambridge Books, Cambridge University Press, number 9780521322249, November.
    7. Perron, Pierre & Vogelsang, Timothy J, 1992. "Nonstationarity and Level Shifts with an Application to Purchasing Power Parity," Journal of Business & Economic Statistics, American Statistical Association, vol. 10(3), pages 301-320, July.
    8. Robert Engle & Clive Granger, 2015. "Co-integration and error correction: Representation, estimation, and testing," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 39(3), pages 106-135.
    9. Lee, Chien-Chiang & He, Zhi-Wen, 2022. "Natural resources and green economic growth: An analysis based on heterogeneous growth paths," Resources Policy, Elsevier, vol. 79(C).
    10. Christian Bayer & Christoph Hanck, 2013. "Combining non-cointegration tests," Journal of Time Series Analysis, Wiley Blackwell, vol. 34(1), pages 83-95, January.
    11. Paresh Kumar Narayan, 2005. "The saving and investment nexus for China: evidence from cointegration tests," Applied Economics, Taylor & Francis Journals, vol. 37(17), pages 1979-1990.
    12. Peter Boswijk, H., 1994. "Testing for an unstable root in conditional and structural error correction models," Journal of Econometrics, Elsevier, vol. 63(1), pages 37-60, July.
    13. Wei, Shuxin & Wei, Wenshan & Umut, Alican, 2023. "Do renewable energy consumption, technological innovation, and international integration enhance environmental sustainability in Brazil?," Renewable Energy, Elsevier, vol. 202(C), pages 172-183.
    14. Makun, Keshmeer, 2021. "External debt and economic growth in Pacific Island countries: A linear and nonlinear analysis of Fiji Islands," The Journal of Economic Asymmetries, Elsevier, vol. 23(C).
    15. Johansen, Soren, 1988. "Statistical analysis of cointegration vectors," Journal of Economic Dynamics and Control, Elsevier, vol. 12(2-3), pages 231-254.
    16. Shah, Muhammad Ibrahim & AbdulKareem, Hauwah K.K. & Zulfiqar khan, & Abbas, Shujaat, 2022. "Examining the agriculture induced Environmental Kuznets Curve hypothesis in BRICS economies: The role of renewable energy as a moderator," Renewable Energy, Elsevier, vol. 198(C), pages 343-351.
    17. Mohsin, Muhammad & Ullah, Hafeez & Iqbal, Nadeem & Iqbal, Wasim & Taghizadeh-Hesary, Farhad, 2021. "How external debt led to economic growth in South Asia: A policy perspective analysis from quantile regression," Economic Analysis and Policy, Elsevier, vol. 72(C), pages 423-437.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Akın Fatih, 2026. "The Relationship Between External Debt and Environmental Quality in Türkiye: A Fractional Frequency Fourier ARDL Bounds Test Approach," South East European Journal of Economics and Business, Sciendo, vol. 21(1), pages 87-101.
    2. Sagheer, Muneeb & Ashraf, Alia, 2024. "Insights on China's economic and environmental dynamics for integrating growth and sustainability," Innovation and Green Development, Elsevier, vol. 3(4).
    3. Leyla Ergene & Nurullah Altıntaş & Muhammet Yeniyurt, 2025. "The ınfluence of financial markets, financial ınstitutions and economic growth on environmental quality and sustainability: Testing the LCC hypothesis in the case of China," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 27(8), pages 20229-20262, August.
    4. Keneck-Massil, Joseph & Foudjo, Suzie Imelda, 2025. "Natural resources dependence and climate vulnerability: Do women's political empowerment and political ideology make the difference?," Resources Policy, Elsevier, vol. 102(C).
    5. Opoku-Mensah, Evans & Ankrah, Martinson Twumasi & Tuffour, Priscilla & Appiah-Otoo, Isaac & Abdallah, Assila, 2025. "Assessing the impact of democratic governance, long and short-term external debt on hydropower generation in BRICS nations using an extended STIRPAT model," Energy, Elsevier, vol. 318(C).
    6. Zhian Yang & Xiaochen Liu & Alina Badulescu, 2024. "Financing Sustainability: Unveiling the Role of Government Debt in Carbon Reduction Performance," Sustainability, MDPI, vol. 16(21), pages 1-19, October.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mamon Adam Maarof & Dildar Haydar Ahmed & Ahmed Samour, 2023. "Fiscal Policy, Oil Price, Foreign Direct Investment, and Renewable Energy—A Path to Sustainable Development in South Africa," Sustainability, MDPI, vol. 15(12), pages 1-16, June.
    2. Ahmed Samour & Omar Ikbal Tawfik & Magdalena Radulescu & Cristina Florentina Baldan, 2023. "Do Oil Price, Renewable Energy, and Financial Development Matter for Environmental Quality in Oman? Novel Insights from Augmented ARDL Approach," Energies, MDPI, vol. 16(12), pages 1-14, June.
    3. Oryani, Bahareh & Kamyab, Hesam & Mоridiаn, Аli & Azizi, Zahra & Rezania, Shahabaldin & Chelliapan, Shreeshivadasan, 2022. "Does structural change boost the energy demand in a fossil fuel-driven economy? New evidence from Iran," Energy, Elsevier, vol. 254(PC).
    4. Awaworyi Churchill, Sefa & Inekwe, John & Ivanovski, Kris & Smyth, Russell, 2019. "Dynamics of oil price, precious metal prices and the exchange rate in the long-run," Energy Economics, Elsevier, vol. 84(C).
    5. Mohammed Abumunshar & Mehmet Aga & Ahmed Samour, 2020. "Oil Price, Energy Consumption, and CO 2 Emissions in Turkey. New Evidence from a Bootstrap ARDL Test," Energies, MDPI, vol. 13(21), pages 1-15, October.
    6. Xia, Wanjun & Murshed, Muntasir & Khan, Zeeshan & Chen, Zhenling & Ferraz, Diogo, 2022. "Exploring the nexus between fiscal decentralization and energy poverty for China: Does country risk matter for energy poverty reduction?," Energy, Elsevier, vol. 255(C).
    7. Uzar, Umut & Eyuboglu, Kemal, 2025. "Testing the load capacity curve for deforestation: A critical investigation using novel methods for the United States," Forest Policy and Economics, Elsevier, vol. 178(C).
    8. Faisal Faisal & Ruqiya Pervaiz & Nesrin Ozatac & Turgut Tursoy, 2021. "Exploring the relationship between carbon dioxide emissions, urbanisation and financial deepening for Turkey using the symmetric and asymmetric causality approaches," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(12), pages 17374-17402, December.
    9. Shreya Pal & Mantu Kumar Mahalik, 2025. "The Role of Real Exchange Rate in India’s Service Export: Do Remittances Inflows Matter in Post Liberalization-Era?," Asia-Pacific Financial Markets, Springer;Japanese Association of Financial Economics and Engineering, vol. 32(1), pages 19-39, March.
    10. Sugra Humbatova & Afag Huseyn & Natig Gadim-Oglu Hajiyev, 2023. "Impact of Oil Factor on Investment: The Case of Azerbaijan," International Journal of Energy Economics and Policy, Econjournals, vol. 13(2), pages 129-148, March.
    11. Simona-Vasilica Oprea & Adela Bâra & Irina Alexandra Georgescu, 2025. "Assessing the Dynamics of Ecological Footprint in Relation to Economic and Energy Factors: A Comparative Analysis of Finland and Japan," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 16(3), pages 11162-11197, September.
    12. Joof, Foday & Samour, Ahmed & Ali, Mumtaz & Tursoy, Turgut & Haseeb, Mohammad & Hossain, Md. Emran & Kamal, Mustafa, 2023. "Symmetric and asymmetric effects of gold, and oil price on environment: The role of clean energy in China," Resources Policy, Elsevier, vol. 81(C).
    13. Sudeshna Ghosh, 2019. "Environmental Pollution, Income Inequality, and Household Energy Consumption: Evidence from the United Kingdom," Journal of International Commerce, Economics and Policy (JICEP), World Scientific Publishing Co. Pte. Ltd., vol. 10(02), pages 1-31, June.
    14. Vlatka Bilas, 2019. "Foreign Direct Investment And Economic Growth Relationship In Croatia," UTMS Journal of Economics, University of Tourism and Management, Skopje, Macedonia, vol. 10(2), pages 175-187.
    15. Yu Huan & Md. Qamruzzaman, 2022. "Innovation-Led FDI Sustainability: Clarifying the Nexus between Financial Innovation, Technological Innovation, Environmental Innovation, and FDI in the BRIC Nations," Sustainability, MDPI, vol. 14(23), pages 1-26, November.
    16. Sahoo, Manoranjan & Babu, M. Suresh & Dash, Umakant, 2016. "Long run sustainability of current account balance of China and India: New evidence from combined cointegration test," MPRA Paper 79013, University Library of Munich, Germany, revised 2016.
    17. Devi Prasad DASH & Debi Prasad BAL & Manoranjan SAHOO, 2016. "Nexus between defense expenditure and economic growth in BRIC economies: An empirical investigation," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(1(606), S), pages 89-102, Spring.
    18. Hrushikesh Mallick & Mantu Kumar Mahalik & Hemachandra Padhan, 2020. "Does globalization exacerbate income inequality in two largest emerging economies? The role of FDI and remittances inflows," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 67(4), pages 443-480, December.
    19. Angeliki N. Menegaki, 2019. "The ARDL Method in the Energy-Growth Nexus Field; Best Implementation Strategies," Economies, MDPI, vol. 7(4), pages 1-16, October.
    20. Muntasir Murshed & Mohamed Elheddad & Rizwan Ahmed & Mohga Bassim & Ei Thuzar Than, 2022. "Foreign Direct Investments, Renewable Electricity Output, and Ecological Footprints: Do Financial Globalization Facilitate Renewable Energy Transition and Environmental Welfare in Bangladesh?," Asia-Pacific Financial Markets, Springer;Japanese Association of Financial Economics and Engineering, vol. 29(1), pages 33-78, March.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:16:y:2024:i:3:p:1037-:d:1326402. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.