Heterogenous influence of productive capacities pillars and natural resources on ecological sustainability in developing Belt and Road host countries

Global climate change and environmental pollution force humanity to create new sustainable growth models. Growth policy relies heavily on the pillars of sectoral productivity: resource efficiency and sustainable resource management. This research adds to the determination of the impact of the numerous productive capacity indices (PCI) and natural resources on the ecological sustainability of emerging Belt and Road host nations from 2000 to 2018. The study utilized the system generalized method of moments (Sys-GMM) and the Feasible generalized least squares (FGLS) estimators to analyze the association among the variables. The empirical findings suggest that cumulative PCI and technological innovation have a promising impact on emissions reduction, while natural resources positively derive emissions. Manifestly, sub-indicators of PCI offer heterogeneous outcomes. Productive capacities in human capital, ICT, energy, and governance encourage ecological sustainability, while transport, private sector development, and structural change increase emissions. Augmented Mean Group estimator also validates similar findings. This research suggests improving operational efficiencies and productive capacities leads to better ecological outcomes.

Automated summary

Global climate change and environmental pollution have prompted mankind to develop new sustainable growth models, which rely on resource efficiency and sustainable resource management. This research analyzes the impact of productive capacity indices (PCI) and natural resources on the ecological sustainability of emerging Belt and Road countries from 2000 to 2018. The study utilizes the system generalized method of moments (Sys-GMM) and the Feasible generalized least squares (FGLS) estimators to examine the association among the variables. The findings suggest that cumulative PCI and technological innovation have a positive impact on emissions reduction, while natural resources contribute to emissions. Sub-indicators of PCI show varying outcomes. Productive capacities in human capital, ICT, energy, and governance promote ecological sustainability, while transport, private sector development, and structural change increase emissions. The Augmented Mean Group estimator also supports these findings. This research highlights the importance of improving operational efficiencies and productive capacities for better ecological outcomes.