Dynamic Effects of Material Production and Environmental Sustainability on Economic Vitality Indicators: A Panel VAR Approach

This study analyzes the relationships and dynamics between material production, foreign direct investment (FDI), economic activity, carbon productivity, stock market, green tech, both in a global European context, using panel vector autoregressive methodology (PVAR). The empirical evidence obtained for Global Group reveals four significant positive unidirectional causality relationships, where aggregate production is prominent variable. For EU-15 group, six were detected, among them three negative relationships. markets shock to be most dominant variable, despite FDI standing out as causing greatest effect. Nevertheless, limited of dematerialization detected. Economic recessions show generally effect, which contrasts with Kitchin cycles, reveal effect relationship.