The Impact of Economic Complexity and Economic Growth on the Ecological Footprint: Empirical Study in Vietnam

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Authors: Phan Thi Lieu, Nguyen Thanh Trong, and Tran Quang Van
Page Range: 485-498
Published in: International Journal of Energy, Environment, and Economics, Volume 31 Issue 4
ISSN: 1054-853X

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Table of Contents

ABSTRACT

The impact of economic activities on environmental degradation has attracted the attention of many researchers. Research findings, however, vary depending on the nation and geographic location of the experiments. This study clarifies the role of economic complexity and economic growth on the ecological footprint in Vietnam. In this study, the authors consider the simultaneous impact of two aspects of economic growth: (1) quantitative growth (through economic growth) and (2) qualitative growth (through economic complexity) on Vietnam’s ecological footprint. By using the autoregressive distributed lag (ARDL) estimation method for the period 1986–2022, the study finds the impacts of economic growth and economic complexity on the ecological footprint in Vietnam. The impact of economic complexity on the ecological footprint has an inverted U-shaped pattern. Furthermore, economic growth influences the lowering of the long-term ecological footprint. These interesting pieces of evidence help test relevant theories about the impact of economic activities on the environment. Simultaneously, this serves as the foundation for identifying appropriate policy implications for lowering the use of the ecological environment in the process of economic growth and development.

Keywords: economic growth, economic complexity, ecological footprint, ARDL, Vietnam

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