Mineral resource rent and sustainable transition: The mediating role of financial development

Yonglong Wang and Rui Wang

Resources Policy, 2024, vol. 89, issue C

Abstract: This paper examines the interrelationships among mineral resource rent, sustainable development, and financial development in ten East Asian nations (excluding some due to data limitations) over the period 2005 to 2020, employing SYS-GMM analysis. The findings of the models unveil noteworthy impacts. In Model I, emphasis is placed on the significance of the lag first-order term for sustainable development, wherein financial market growth accentuates the sustainable development index by nearly 0.18% per 1% increase. Model II illustrates a positive association between financial market development and mineral rents, driven by enhanced investment capacities and infrastructure development. Model III underscores the relevance of mineral rents, demonstrating that a 1% increase correlates with a approximately 0.063% rise in the sustainable development index. The study underscores the adverse effects of inward foreign direct investment (FDI) on sustainability and highlights the negative influence of financial risk. Practical recommendations include the promotion of a green financial market, environmentally conscious mineral exploration, optimized logistics, and the utilization of AI and big data to bolster the sustainability of mineral companies.

Keywords: Mineral rents; Sustainable development; Financial development; System-GMM; East Asia (search for similar items in EconPapers)
JEL-codes: C33 G20 O53 Q01 Q32 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jrpoli:v:89:y:2024:i:c:s0301420723012382

DOI: 10.1016/j.resourpol.2023.104527

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