The impact of green economic recovery on economic growth and ecological footprint: A case study in developing countries of Asia

Most countries prioritize economic policy that aims to achieve sustainable economic growth, as measured by Gross Domestic Product (GDP). However, economic development has led to a rise in the ecological footprint, which is a significant concern given that global warming and climate change are among the most pressing global challenges. This paper analyzes the impact of green economic recovery on the economic growth of developing Asian nations from 2000 to 2020, utilizing the correlated mutual influence mean group (CCE-MG) and Dumi-trescu and Hurlin (D-H) causality test. The study finds that in developed nations, urbanization (UR) and green economic recovery (GR) have a favorable influence on GDP. Conversely, in Asian developing nations, this impact is observed to be unfavorable. The impact of natural resources on GDP exhibited a contrasting outcome. The paper recommends prioritizing natural resource development to promote economic growth while enforcing environmental regulations to safeguard the environment.