Nexus of natural resource depletion, corruption and financial inclusion on bio-diversity loss: A systematic study on corrupt economies

Abstract

In recent years, the rising trend in environmental pollution has become a leading concern, and the world is sorting out some of the best solutions. However, the depletion of a nation's NRD has a significant role in economic power. However, there are also worries about the effects of NRD on the natural world. This paper's overarching goal is to learn how ecological footprint (ECF) is affected by natural resources, corruption, and financial inclusion. Also, this is the first research to examine the interplay between the environment and context of corrupt economies while also considering human capital, economic development, and FDI. We covered the years 2000–2022, using data from the most corrupt nations in the world each year. By using second-generation econometric methods, this research verifies that all parameters are stationarity, and credible findings were achieved using cross-sectional dependence, panel unit root testing, and co-integration. The CS-ARDL test's long-run estimations show that economic progress has a beneficial effect on ecological footprint. Human capital, financial inclusion, and the depletion of natural resources all contribute significantly to better environmental quality by reducing the ecological footprint. However, empirical data reveals that financial dealings and FDI greatly contribute to environmental deterioration. We discovered similar results in the model-based robustness evaluation using " AMG and CCE-MG estimators. This research presents policymakers with the current state of the most corrupt economies and urges them to consider the critical importance of combining sound financial management and investment in people to achieve sustainability.