Affiliation:
1. School of Tourism Hebei University of Economics and Business Shijiazhuang China
2. Modern Business Service Research Center of Hebei University of Economics and Business Shijiazhuang China
3. Department of Economics and Quantitative Methods HSM, University of Management and Technology Lahore Pakistan
4. Department of Quality Enhancement Cell Institute for Art and Culture Lahore Pakistan
5. School of Computing and Augmented Intelligence Arizona State University Tempe Arizona USA
6. Adnan Kassar School of Business Lebanese American University Beirut Lebanon
7. School of Business Administration ILMA University Karachi Pakistan
8. School of Economics and Public Policy University of Adelaide Adelaide South Australia Australia
Abstract
AbstractThis research delves into whether access to natural resources is a blessing or a curse, a matter of contention within contemporary literature. Lacking conclusive evidence, particularly within the G‐20 countries, this study endeavors to establish the intricate linkages between economic development, natural resources, and economic complexity. A subset of G‐20 economies from 1990 to 2021 was used to analyze the results of the second‐generation CS‐ARDL model. After accounting for variables like corruption, total labor force, gross capital formation, trade openness, and inflow of foreign direct investment, we find that natural resources, economic complexity, corruption and gross capital formation are significant and adverse predictors of economic growth. Natural resource dependence is susceptible to price fluctuations and sustainability concerns, economic complexity may introduce market volatility challenges, corruption erodes trust and transparency, and excessive gross capital formation can lead to economic imbalances. On the other hand, economic growth is positively impacted by the additional effects of the control variables, including foreign direct investment, trade openness and labor force. In crafting its policy recommendations, this study artfully weaves a tapestry that resonates with the core principles of the Sustainable Development Goals (SDGs). These strategic imperatives include the adept stewardship of resources, the cultivation of economic diversity, the seamless facilitation of trade, the fortification against corruption, and a harmonious symphony that underscores financial stability and the nurturing of human capital, ultimately painting a vivid portrait of sustainable economic growth.
Subject
Development,Renewable Energy, Sustainability and the Environment