Unleashing the dynamic linkages among natural resources, economic complexity, and sustainable economic growth: Evidence from G‐20 countries

Abstract

This 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.

Navigating the nexus: unraveling technological innovation, economic growth, trade openness, ICT, and CO2 emissions through symmetric and asymmetric analysis

“…This transition has been accompanied by the growth of service sectors and urbanization . Trade openness has a growing positive impact on national economies, especially when considering the interdependence of financial systems, which boosts economic growth (Zhang et al, 2024;Ashiq et al, 2023). However, trade openness carries dual disadvantages: while it promotes economic growth, it also adversely affects the environment and climate (Zhang et al, 2023).…”