Economic Complexity and the Ecological Footprint in Selected MENA Countries: Panel Data Evidence

While the transition toward knowledge-based economies is accelerating, its environmental implications remain contentious, particularly in resource-dependent regions. This study investigates the impact of economic complexity, renewable energy, innovation, and financial development on the ecological footprint (EF) across ۱۵ Middle Eastern and North African (MENA) countries spanning the period ۱۹۹۶ to ۲۰۲۲. Utilizing the Driscoll-Kraay robust estimator to account for cross-sectional dependence and heteroskedasticity, the empirical results reveal a non-linear (U-shaped) but statistically insignificant relationship between economic complexity and EF, challenging the validity of the Environmental Kuznets Curve (EKC) in the context of regional economic intricacy. Conversely, renewable electricity generation significantly mitigates environmental pressure, whereas innovation, proxies by scientific publications and financial development unexpectedly exacerbates the ecological footprint. These findings suggest that current innovative activities and financial flows in the MENA region are predominantly directed toward carbon-intensive sectors. The findings highlight the importance of accelerating renewable electricity deployment and redirecting finance and innovation toward green technologies to place Middle East and North African economies on a more sustainable path. The study concludes with policy recommendations emphasizing the decoupling of economic growth from environmental degradation through 'green' diversification.

کلیدواژه ها:

Ecological Footprint ، Economic Complexity ، Financial Development ، Innovation ، Renewable electricity generation ، urbanization