Mohamed, Abdisalan Aden (2025) Institutional quality, economic growth, and environmental sustainability: a long‑run analysis of the ecological footprint in Somali. Discover Sustainability.
![[thumbnail of Institutional-quality-economic-growth-and-environmental-sustainability-a-longrun-analysis-of-the-ecologi.pdf]](https://repository.simad.edu.so/style/images/fileicons/text.png)
Institutional-quality-economic-growth-and-environmental-sustainability-a-longrun-analysis-of-the-ecologi.pdf - Published Version
Download (1MB)
Abstract
This study investigates the complex linkage between economic growth, institutional quality, urbanization, trade open
ness, and Somalia’s ecological footprint from 1990 to 2020. To ensure reliable results, we initially conducted an assessment
of the order of integration of our variables through the use of the augmented Dickey-Fuller (ADF) and the Phillips-Perron
(PP) stationarity tests, which indicated a mixed order of integration. Following this, we employed the autoregressive
distributed lag (ARDL) technique, in combination with the fully modified ordinary least squares (FMOLS) and canonical
cointegrating regression (CCR) methods, to investigate the long-term relationships and causal connections between these
variables, further supported by the application of the Granger causality test. Our findings indicate that a 1% increase in
GDP per capita increases the ecological footprint by 3.79%, while a 1% increase in GDP per capita squared decreases it
by 0.05%. This supports the environmental Kuznets curve hypothesis, which means that at higher stages of economic
development, the damage to the environment decreases. However, improvements in institutional quality have had
minimal and statistically insignificant effects on the ecological footprint. While urbanization showed a considerable
impact in the long run, its short-term effects were minimal. Interestingly, trade openness emerged as a positive factor,
contributing to a reduction in the ecological footprint over time. To build a sustainable future, Somalia should balance
economic growth with environmental protection by prioritizing green technologies, enhancing governance for enforcing
environmental regulations, integrating sustainability into urban planning, and promoting trade in clean technologies
to reduce its ecological footprint
Item Type: | Article |
---|---|
Subjects: | H Social Sciences > HC Economic History and Conditions |
Divisions: | Faculty of Economics |
Depositing User: | Unnamed user with email crd@smiad.edu.so |
Date Deposited: | 10 Sep 2025 17:24 |
Last Modified: | 10 Sep 2025 17:24 |
URI: | https://repository.simad.edu.so/id/eprint/100 |