IDEAS home Printed from https://ideas.repec.org/a/wly/natres/v48y2024i4p1494-1511.html

Human capital, economic complexity, and ecological footprints: Crafting a sustainable development policy framework for E7 nations

Author

Listed:
  • Tao Hong
  • Jie Yin
  • Muhammad Nouman Latif
  • Mahmood Ahmad

Abstract

Climate change is one of the most pressing challenges of our time, with far‐reaching implications for ecosystems, economies, and societies worldwide. Human capital (HUC) and economic complexity (ECC) “understood as structural transformation toward more sophisticated and knowledge‐based production” can be pivotal in curtailing ecological degradation. In this context, the study explores the intricate relationship between HUC, financial development, financial globalization, gross domestic product, ECC, and ecological footprints from 1995 to 2021. To achieve this objective, advanced econometric estimation methods are employed. The results indicate the presence of cross‐sectional dependence and slope heterogeneity in the dataset. The variables present a mixed order of stationarity, while the Westerlund test indicates the presence of a long‐run equilibrium association. The results from the Method of Moments Quantile regression indicate that ECC posed a positive but insignificant effect in the lower quantile (τ = 0.1–0.25), while negative and significant in the middle (τ = 0.50) and upper quantiles (τ = 0.75–0.90). Moreover, financial globalization negatively and significantly affects ecological footprints through all the quantiles except the lower quantile (τ = 0.1). Financial development, gross domestic product, and HUC enhance environmental degradation by escalating ecological footprints. Based on the results, the study suggested enhancing the ECC and financial globalization, while sustainable utilization of HUC and strict regulations for the financial sector to foster sustainable development in E7 countries.

Suggested Citation

  • Tao Hong & Jie Yin & Muhammad Nouman Latif & Mahmood Ahmad, 2024. "Human capital, economic complexity, and ecological footprints: Crafting a sustainable development policy framework for E7 nations," Natural Resources Forum, Blackwell Publishing, vol. 48(4), pages 1494-1511, November.
    • Handle: RePEc:wly:natres:v:48:y:2024:i:4:p:1494-1511
    DOI: 10.1111/1477-8947.12520
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/1477-8947.12520
    Download Restriction: no
    File URL: https://libkey.io/10.1111/1477-8947.12520?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Yiannis Karavias & Paresh Kumar Narayan & Joakim Westerlund, 2023. "Structural Breaks in Interactive Effects Panels and the Stock Market Reaction to COVID-19," Journal of Business & Economic Statistics, Taylor & Francis Journals, vol. 41(3), pages 653-666, July.
    Full references (including those not matched with items on IDEAS)

    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. Lu, Xinjie & Zeng, Qing & Zhong, Juandan & Zhu, Bo, 2024. "International stock market volatility: A global tail risk sight," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 91(C).
    2. Li, Zhisheng & Lin, Bingxuan & Liu, Zhouyi & Yüksel, H. Zafer, 2025. "Unpacking the crisis: Impact of COVID-19 on global equity flows," Journal of Financial Stability, Elsevier, vol. 81(C).
    3. De Vos, Ignace & Stauskas, Ovidijus, 2024. "Cross-section bootstrap for CCE regressions," Journal of Econometrics, Elsevier, vol. 240(1).
    4. Indra Tumbelaka, 2025. "Loan Restructuring and Deposit Growth: Evidence from the Market Discipline during the COVID-19 Outbreak," Bulletin of Monetary Economics and Banking, Bank Indonesia, vol. 28(2), pages 199-216, July.
    5. Jiang, Shi-jie & Zeng, Lehang & Rui, Xinyu, 2025. "Drivers of the credited interest rate on universal life insurance: Evidence from the Chinese insurance sector," Journal of Asian Economics, Elsevier, vol. 100(C).
    6. Jan Ditzen & Yiannis Karavias & Joakim Westerlund, 2025. "Testing and estimating structural breaks in time series and panel data in Stata," Stata Journal, StataCorp LLC, vol. 25(3), pages 526-560, September.
    7. Jan Ditzen & Yiannis Karavias & Joakim Westerlund, 2025. "Multiple Structural Breaks in Interactive Effects Panel Data Models," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 40(1), pages 74-88, January.
    8. Kong, Wei & Sharma, Susan Sunila & Zhao, Xin-Xin & Shi, Yao-Bo, 2025. "The rescue effect of local government financing vehicles on real estate enterprises in China," Pacific-Basin Finance Journal, Elsevier, vol. 91(C).
    9. Adiwan F. Aritenang, 2025. "Does fiscal decentralization increase urban temperature? The case of Indonesian metropolitans," Asia-Pacific Journal of Regional Science, Springer, vol. 9(4), pages 955-973, December.
    10. Rai, Karan & Garg, Bhavesh, 2025. "Demographic transition and financial assets," Emerging Markets Review, Elsevier, vol. 69(C).
    11. Surender Kumar, 2024. "Do Digital Payments Spur GST Revenue: Indian Experience," Bulletin of Monetary Economics and Banking, Bank Indonesia, vol. 27(3), pages 459-482, July.
    12. Otilia Boldea & Alastair R. Hall, 2025. "Testing for multiple change-points in macroeconometrics: an empirical guide and recent developments," Papers 2507.22204, arXiv.org.
    13. Néstor A. Clech, 2025. "Macroeconomic and institutional determinants of human capital wealth: gender disparities and implications," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 42(1), pages 121-153, April.
    14. Rogneda Vasilyeva & Anton Skrobotov & Aleksei Tsarev, 2025. "Structural breaks in panel data: COVID-19 pandemic in Russian regions," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 80, pages 117-142.
    15. Sha, Yezhou & Wu, Xi, 2025. "Black market prices as inflation predictor: Evidence from China’s hyperinflation," Finance Research Letters, Elsevier, vol. 84(C).
    16. Bindal, Shradha & Joseph, Kissan & Meschke, Felix, 2025. "Corporate shutdowns in the time of Covid-19," Journal of Corporate Finance, Elsevier, vol. 92(C).
    17. Sun, Guanglin & Yin, Ding & Kong, Tao & Yin, Lei, 2024. "The impact of the integration of the digital economy and the real economy on the risk of stock price collapse," Pacific-Basin Finance Journal, Elsevier, vol. 85(C).
    18. Ovidijus Stauskas & Ignace De Vos, 2025. "Handling Distinct Correlated Effects with CCE," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 87(2), pages 448-475, April.
    19. Garg, Bhavesh & Sahoo, Pravakar, 2023. "Are gross financial inflows expansionary or contractionary? Evidence from emerging economies," Finance Research Letters, Elsevier, vol. 58(PA).
    20. Bianca Raluca Baditoiu & Roxana Ioan & Valentin Partenie Munteanu & Alexandru Buglea, 2023. "Investors’ reactions on the publication of integrated reports. Evidence from European stock markets," E&M Economics and Management, Technical University of Liberec, Faculty of Economics, vol. 26(2), pages 158-171, June.

    More about this item

    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:wly:natres:v:48:y:2024:i:4:p:1494-1511. 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: Wiley Content Delivery (email available below). General contact details of provider: https://doi.org/10.1111/(ISSN)1477-8947 .

    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.