Ecological footprint, natural resource rent, and industrial production in MENA region: Empirical evidence using the SDM model

Abstract

Based on a spatial approach, this study aims to test and appreciate the relationship between natural resource rents, industrial production, and ecological footprint (EFP) for 17 countries in the MENA region over the period 2000–2018. Findings demonstrate the existence of (i) statical significant direct effects between environmental degradation, the level of local development, the resource rent, and the rate of industrialization. (ii) a significant positive spatial autocorrelation in EFP levels with a clear trajectory dependence characteristic in their geographic distribution. (iii) a positive interdependence between economic development, the level of industrialization, and resource rent with neighboring countries; (iv) only renewable energy conception has a negative interdependence with neighboring countries.Based on our result, regional planning can be dressed to maintain environmental quality in the region by defining the adequate compensation process between countries in the region. Developing a bio-economy seems to be a collective-collaborative process to maintain economic growth and industrial production without destroying the environment.