The effect of economic complexity and economic globalization on load capacity index in Iran

Articles in Press

Document Type : Original Article

Authors

1 Assistant Professor, Department of Economics, Faculty of Humanities, Sanandaj Branch, Islamic Azad University, Sanandaj, Iran

2 M.A. in Economics, Department of Economic, Faculty of Humanities and Social Sciences, University of Kurdistan, Sanandaj, Iran

Abstract

A broader and more comprehensive environmental assessment is needed to reduce environmental challenges and achieve sustainable development goals. Consequently, this research uses the load capacity coefficient, which is a distinct proxy of environmental degradation that provides a precise environmental assessment by comparing the biological capacity and ecological footprint simultaneously. ; Therefore, in this research, the impact of economic complexity and economic globalization on the sustainable load capacity index has been investigated using the modified least squares method during the period of 1995-2021. The results of the research show that the variables of economic complexity and financial development have a positive and significant effect on the load capacity index, and also the variables of economic globalization, foreign direct investment and non-renewable energy have a negative and significant effect on the load capacity index. Therefore, by adopting the right approaches, Iran can help preserve the environment at the same time as increasing the variety of exports. Developing business relations with countries that have high environmental standards, drafting strong laws and regulations, therefore, by improving and developing green energies and considering the importance of environmental considerations in the allocation of financial resources, designing policies that direct investments towards sustainable and environmentally friendly projects.

Keywords

Main Subjects

Economic Policies and Research

Articles in Press, Accepted Manuscript
Available Online from 13 January 2025

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History

  • Receive Date: 04 August 2024
  • Revise Date: 12 January 2025
  • Accept Date: 13 January 2025
  • Publish Date: 13 January 2025

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