Nexus of fisheries and agriculture production and urbanization on ecological footprint: New evidence from Indonesian economy

Abstract

The current examination is motivated to identify the link between fisheries, agriculture, urbanization, and the environment. In doing so, the present study is motivated to examine the Indonesian economy due to its massive population, marine-centered location, and almost equal rural-urban ratio. Hence, the current examination analyzed the influence of fisheries production, Agriculture production, and urban development (UD) on the ecological footprint (EF) in Indonesia. The novelty of the present study lies in being the pioneer examination to study the joint effect of the mentioned variables on EF. We applied a novel methodology of auto regressive distributed lag (ARDL) bound testing cointegration to confirm the long and short run connection between fisheries, agriculture, UD, and EF in Indonesia. The results of ARDL confirm that UD, agriculture, and fisheries production has a positive and significant impact on the EF in the long-run. However, only a negative impact is found from agriculture production to EF in the short-run period in Indonesia. The present study recommended that the Indonesian government need to introduce some technology-oriented production system for fisheries and agriculture sector in order to reduce the EF in the Indonesian Economy.