The Causal Dynamics of Globalization, Human Development and Economic Growth on Ecological Footprint: An HDI-Based Cross-Country Analysis

This study aims to investigate the causal relationships among globalization, economic growth, human development, and the ecological footprint. Employing the panel Granger causality test developed by Juodis et al. (2021), this study utilizes data from 118 countries spanning the period from 1990 to 2021. I also conduct a multivariate causality analysis for four distinct country groups based on their human development index (very high HDI, high HDI, medium HDI, and low HDI). A key finding of this study is the consistent emergence of a joint causal relationship between globalization and human development and the ecological footprint across all country groups. Similarly, I find globalization and economic growth to be joint Granger causes of the ecological footprint, except for the medium HDI group. Consequently, globalization, along with growth and human development as fundamental economic objectives, emerges as significant drivers of the ecological footprint across all countries. In light of these findings, it is imperative for policymakers to revisit economic policies, giving due consideration to the sustainability of ultimate economic goals.