Remittances effects on ecological footprint in major economies

This study investigates the short- and long-run effects of remittances on ecological footprint in nine major remittance-receiving countries (Bangladesh, China, Egypt, France, Germany, India, Mexico, Nigeria, and Pakistan) over 1990–2020. Using the Panel Autoregressive Distributed Lag (PARDL) model, which accommodates mixed integration orders, both linear and non-linear specifications are estimated to test the Environmental Kuznets Curve (EKC) hypothesis. The results show that remittances significantly reduce ecological footprint in the long run, while economic growth increases it, with the squared GDP term confirming the EKC relationship. Robustness checks with FMOLS and DOLS yield consistent findings. Dumitrescu-Hurlin panel causality tests further indicate that remittances unidirectionally influence ecological footprint, while GDP, urbanization, and manufacturing show bidirectional interdependencies, highlighting the complex dynamics among economic, social, and environmental factors. These results reinforce the long-run evidence that remittances can support environmental sustainability, suggesting policymakers channel them toward green investments and awareness initiatives.