IDEAS home Printed from https://ideas.repec.org/a/eee/jrpoli/v88y2024ics0301420723012060.html
   My bibliography  Save this article

Exploring the role of financial technologies and digital trade in shaping trade-adjusted resource consumption in E7 countries

Author

Listed:
  • Wang, Shubin
  • Li, Jiabao
  • Zhao, Erlong

Abstract

Sustainable resource management integrates inclusive prosperity and resource sustainability; however, intensified resource extraction emerged resource depletion and severe environmental consequences, particularly in emerging economies (E7). Therefore, identifying the mitigating factors of trade-adjusted mineral resources footprint (MF) is imperative to ensure resource efficiency targets. Our study evaluates the asymmetric influence of Fintech (FIN), digital trade (DT), and renewable energy (REN) on MF in E7 countries using the advanced panel method of moment quantile regression (MMQR) from 2005 to 2020. The empirical analysis reveals that FIN and REN significantly mitigate MF from middle to higher quantiles while insignificant at the lowest grid. In contrast, DT substantially instigates the MF from lower to middle quantiles while not impacting the higher MF quantiles. In the empirical procedure, alternative linear panel estimation approaches are also employed to affirm the robustness of estimates echoed by the MMQR framework. Moreover, panel causality testing is performed to ascertain the causal association among the variables, exhibiting that FIN, REN, and MF have bi-directional causality, and industrial output and MF have unidirectional causality. The findings recommend policy implications to all stakeholders in improving the progress toward efficient resource allocation.

Suggested Citation

  • Wang, Shubin & Li, Jiabao & Zhao, Erlong, 2024. "Exploring the role of financial technologies and digital trade in shaping trade-adjusted resource consumption in E7 countries," Resources Policy, Elsevier, vol. 88(C).
  • Handle: RePEc:eee:jrpoli:v:88:y:2024:i:c:s0301420723012060
    DOI: 10.1016/j.resourpol.2023.104495
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301420723012060
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.resourpol.2023.104495?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Yang, Yuxue & Su, Xiang & Yao, Shuangliang, 2021. "Nexus between green finance, fintech, and high-quality economic development: Empirical evidence from China," Resources Policy, Elsevier, vol. 74(C).
    2. Thomas Wiedmann & Heinz Schandl & Daniel Moran, 2015. "The footprint of using metals: new metrics of consumption and productivity," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 17(3), pages 369-388, July.
    3. Chang, Chiu-Lan & Fang, Ming, 2022. "Renewable energy-led growth hypothesis: New insights from BRICS and N-11 economies," Renewable Energy, Elsevier, vol. 188(C), pages 788-800.
    4. Xu, Pei & Hussain, Muzzammil & Ye, Chengang & Wang, Jiangquan & Wang, Chen & Geng, Jinzhou & Liu, Yiding & Chen, Jingwei, 2022. "Natural resources, economic policies, energy structure, and ecological footprints’ nexus in emerging seven countries," Resources Policy, Elsevier, vol. 77(C).
    5. Pedroni, Peter, 2004. "Panel Cointegration: Asymptotic And Finite Sample Properties Of Pooled Time Series Tests With An Application To The Ppp Hypothesis," Econometric Theory, Cambridge University Press, vol. 20(3), pages 597-625, June.
    6. M. Hashem Pesaran, 2007. "A simple panel unit root test in the presence of cross-section dependence," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 22(2), pages 265-312.
    7. Joakim Westerlund, 2007. "Testing for Error Correction in Panel Data," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 69(6), pages 709-748, December.
    8. Machado, José A.F. & Santos Silva, J.M.C., 2019. "Quantiles via moments," Journal of Econometrics, Elsevier, vol. 213(1), pages 145-173.
    9. Dumitrescu, Elena-Ivona & Hurlin, Christophe, 2012. "Testing for Granger non-causality in heterogeneous panels," Economic Modelling, Elsevier, vol. 29(4), pages 1450-1460.
    10. Lisha, Liu & Mousa, Saeed & Arnone, Gioia & Muda, Iskandar & Huerta-Soto, Rosario & Shiming, Zhai, 2023. "Natural resources, green innovation, fintech, and sustainability: A fresh insight from BRICS," Resources Policy, Elsevier, vol. 80(C).
    11. Zhou, Guangyou & Zhu, Jieyu & Luo, Sumei, 2022. "The impact of fintech innovation on green growth in China: Mediating effect of green finance," Ecological Economics, Elsevier, vol. 193(C).
    12. Pesaran, M. Hashem & Vanessa Smith, L. & Yamagata, Takashi, 2013. "Panel unit root tests in the presence of a multifactor error structure," Journal of Econometrics, Elsevier, vol. 175(2), pages 94-115.
    13. M. Hashem Pesaran, 2021. "General diagnostic tests for cross-sectional dependence in panels," Empirical Economics, Springer, vol. 60(1), pages 13-50, January.
    14. Taiwo Onifade, Stephen & Gyamfi, Bright Akwasi & Haouas, Ilham & Bekun, Festus Victor, 2021. "Re-examining the roles of economic globalization and natural resources consequences on environmental degradation in E7 economies: Are human capital and urbanization essential components?," Resources Policy, Elsevier, vol. 74(C).
    15. Hashem Pesaran, M. & Yamagata, Takashi, 2008. "Testing slope homogeneity in large panels," Journal of Econometrics, Elsevier, vol. 142(1), pages 50-93, January.
    16. Awais, Minahil & Afzal, Ayesha & Firdousi, Saba & Hasnaoui, Amir, 2023. "Is fintech the new path to sustainable resource utilisation and economic development?," Resources Policy, Elsevier, vol. 81(C).
    17. Qiao, Hongqiang & Kang, Yongwei & Yan, Jixuan & Zhang, Jia & Zheng, Zhiqin & Liang, Qiaoxia, 2023. "What role does trade expansion play in the natural resource sustainability of highly resource-consuming countries? Testing Moderating Role of Exports and Innovation," Resources Policy, Elsevier, vol. 82(C).
    18. Xiaojun Lyu & Haiqian Ke, 2022. "Dynamic Threshold Effect of Directed Technical Change Suppress on Urban Carbon Footprint in China," IJERPH, MDPI, vol. 19(9), pages 1-15, April.
    19. Tan, Qingmei & Yasmeen, Humaira & Ali, Sharafat & Ismail, Hina & Zameer, Hashim, 2023. "Fintech development, renewable energy consumption, government effectiveness and management of natural resources along the belt and road countries," Resources Policy, Elsevier, vol. 80(C).
    20. Lutter, Stephan & Giljum, Stefan & Bruckner, Martin, 2016. "A review and comparative assessment of existing approaches to calculate material footprints," Ecological Economics, Elsevier, vol. 127(C), pages 1-10.
    21. Delia-Elena Diaconașu & Ionel Bostan & Cristina Căutișanu & Irina Chiriac, 2022. "Insights into the Sustainable Development of the Bioeconomy at the European Level, in the Context of the Desired Clean Environment," IJERPH, MDPI, vol. 19(18), pages 1-14, September.
    22. Shahzad, Umer & Doğan, Buhari & Sinha, Avik & Fareed, Zeeshan, 2021. "Does Export product diversification help to reduce energy demand: Exploring the contextual evidences from the newly industrialized countries," Energy, Elsevier, vol. 214(C).
    23. Shao, Shuai & Razzaq, Asif, 2022. "Does composite fiscal decentralization reduce trade-adjusted resource consumption through institutional governance, human capital, and infrastructure development?," Resources Policy, Elsevier, vol. 79(C).
    24. abid, Nabila & Ceci, Federica & Razzaq, Asif, 2023. "Inclusivity of information and communication technology in ecological governance for sustainable resources management in G10 countries," Resources Policy, Elsevier, vol. 81(C).
    25. Teng, Mingming & Shen, Minghao, 2023. "Fintech and energy efficiency: Evidence from OECD countries," Resources Policy, Elsevier, vol. 82(C).
    26. Dogan, Eyup & Majeed, Muhammad Tariq & Luni, Tania, 2021. "Analyzing the impacts of geopolitical risk and economic uncertainty on natural resources rents," Resources Policy, Elsevier, vol. 72(C).
    27. Tao, Ran & Su, Chi-Wei & Naqvi, Bushra & Rizvi, Syed Kumail Abbas, 2022. "Can Fintech development pave the way for a transition towards low-carbon economy: A global perspective," Technological Forecasting and Social Change, Elsevier, vol. 174(C).
    28. Sun, Yanlei & Wang, Siyao & Xing, Zhanlei, 2023. "Do international trade diversification, intellectual capital, and renewable energy transition ensure effective natural resources management in BRICST region," Resources Policy, Elsevier, vol. 81(C).
    29. Zhou, Xiaoyong & Zhou, Dequn & Wang, Qunwei & Su, Bin, 2019. "How information and communication technology drives carbon emissions: A sector-level analysis for China," Energy Economics, Elsevier, vol. 81(C), pages 380-392.
    30. Zhang, Xudong & Song, Xueqian & Lu, Jianguang & Liu, Fei, 2022. "How financial development and digital trade affect ecological sustainability: The role of renewable energy using an advanced panel in G-7 Countries," Renewable Energy, Elsevier, vol. 199(C), pages 1005-1015.
    31. Roger Koenker & Kevin F. Hallock, 2001. "Quantile Regression," Journal of Economic Perspectives, American Economic Association, vol. 15(4), pages 143-156, Fall.
    32. Li, ChangZheng & Razzaq, Asif & Ozturk, Ilhan & Sharif, Arshian, 2023. "Natural resources, financial technologies, and digitalization: The role of institutional quality and human capital in selected OECD economies," Resources Policy, Elsevier, vol. 81(C).
    33. Behrens, Arno & Giljum, Stefan & Kovanda, Jan & Niza, Samuel, 2007. "The material basis of the global economy: Worldwide patterns of natural resource extraction and their implications for sustainable resource use policies," Ecological Economics, Elsevier, vol. 64(2), pages 444-453, December.
    34. Croutzet, Alexandre & Dabbous, Amal, 2021. "Do FinTech trigger renewable energy use? Evidence from OECD countries," Renewable Energy, Elsevier, vol. 179(C), pages 1608-1617.
    35. Hu, Kexiang & Sinha, Avik & Tan, Zhixiong & Shah, Muhammad Ibrahim & Abbas, Shujaat, 2022. "Achieving energy transition in OECD economies: Discovering the moderating roles of environmental governance," Renewable and Sustainable Energy Reviews, Elsevier, vol. 168(C).
    36. Zheng, Lei & Hao, Jia & Ban, Nannan, 2023. "Do recycling and regulations influence trade-adjusted resource consumption? Exploring the role of renewable energy," Resources Policy, Elsevier, vol. 81(C).
    37. Sun, Yunpeng & Bao, Qun & Siao-Yun, Wei & Islam, Misbah ul & Razzaq, Asif, 2022. "Renewable energy transition and environmental sustainability through economic complexity in BRICS countries: Fresh insights from novel Method of Moments Quantile regression," Renewable Energy, Elsevier, vol. 184(C), pages 1165-1176.
    38. Brantley Liddle, 2018. "Consumption-Based Accounting and the Trade-Carbon Emissions Nexus in Asia: A Heterogeneous, Common Factor Panel Analysis," Sustainability, MDPI, vol. 10(10), pages 1-13, October.
    39. Suki, Norazah Mohd & Suki, Norbayah Mohd & Afshan, Sahar & Sharif, Arshian & Meo, Muhammad Saeed, 2022. "The paradigms of technological innovation and renewables as a panacea for sustainable development: A pathway of going green," Renewable Energy, Elsevier, vol. 181(C), pages 1431-1439.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Han, Zhanbing & Heng, Yixin, 2024. "Do fintech and trade diversification discard the natural resource dependency in MENA countries?," Resources Policy, Elsevier, vol. 89(C).
    2. Xia, Aiming & Liu, Qing, 2024. "Modelling the asymmetric impact of fintech, natural resources, and environmental regulations on ecological footprint in G7 countries," Resources Policy, Elsevier, vol. 89(C).
    3. Zhang, Yanhua & Cui, Xiaoyan, 2024. "Fintech, business regulations, and urbanization: Shaping the landscape of natural resource rent in G10 countries," Resources Policy, Elsevier, vol. 89(C).
    4. Ozturk, Ilhan & Razzaq, Asif & Sharif, Arshian & Yu, Zhengsen, 2023. "Investigating the impact of environmental governance, green innovation, and renewable energy on trade-adjusted material footprint in G20 countries," Resources Policy, Elsevier, vol. 86(PA).
    5. Sun, Yanlei & Wang, Siyao & Xing, Zhanlei, 2023. "Do international trade diversification, intellectual capital, and renewable energy transition ensure effective natural resources management in BRICST region," Resources Policy, Elsevier, vol. 81(C).
    6. Yingchao, He & Xiang, Yijun, 2024. "Influence of trade liberalization and digital trade on material footprint in the BRICS region," Resources Policy, Elsevier, vol. 88(C).
    7. Tiwari, Sunil & Cheong, Calvin W.H. & See Mey, Loy & Saji, T.G., 2024. "Does fintech really matter for energy, economy and environment? From the lenses of SDG-7, SDG-8, SDG-13, COP27 and COP28," Resources Policy, Elsevier, vol. 98(C).
    8. Luo, Cheng & Li, Yonggang, 2024. "Asymmetric influence of fintech, oil prices, and precious metals on green growth of emerging seven countries," Resources Policy, Elsevier, vol. 92(C).
    9. Liu, Yuhua & Chen, Kexin, 2024. "Integrated effect of financial development and digital trade on resources footprint: Role of and agricultural value added in MINT countries," Resources Policy, Elsevier, vol. 90(C).
    10. Li, Tianqun & Chen, Yuhan & Zhou, Liangxiao, 2023. "Impact of trade, technology, and tourism on resources depletion across Belt and Road Node countries," Resources Policy, Elsevier, vol. 83(C).
    11. Kai, Zhang & Sharaf, Mohamed & Wei, Siao-Yun & Shraah, Ata Al & Le, Luan Thanh & Arvind Bedekar, Dr Abhay & Bani Ahmad, Ahmad Y.A., 2024. "Exploring the asymmetric relationship between natural resources, fintech, remittance and environmental pollution for BRICS nations: New insights from MMQR approach," Resources Policy, Elsevier, vol. 90(C).
    12. Kostakis, Ioannis & Arauzo-Carod, Josep-Maria, 2023. "The key roles of renewable energy and economic growth in disaggregated environmental degradation: Evidence from highly developed, heterogeneous and cross-correlated countries," Renewable Energy, Elsevier, vol. 206(C), pages 1315-1325.
    13. Fang, Shuya & Fang, Wei, 2023. "How fiscal decentralization and trade diversification influence sustainable development: Moderating role of resources dependency," Resources Policy, Elsevier, vol. 84(C).
    14. Xiong, Su & Luo, Rong, 2023. "Investigating the relationship between digital trade, natural resources, energy transition, and green productivity: Moderating role of R&D investment," Resources Policy, Elsevier, vol. 86(PB).
    15. Wang, Jianxin & Zhu, Guohua & Chang, Tin-Chang, 2024. "Unveiling the relationship between institutional quality, fintech, financial inclusion, human capital development and mineral resource abundance. An Asian perspective," Resources Policy, Elsevier, vol. 89(C).
    16. Xu, Haitao & Yang, Chengying & Li, Xuetao & Liu, Ruiyu & Zhang, Yonghong, 2024. "How do fintech, digitalization, green technologies influence sustainable environment in CIVETS nations? An evidence from CUP FM and CUP BC approaches," Resources Policy, Elsevier, vol. 92(C).
    17. Wolde-Rufael, Yemane & Mulat-Weldemeskel, Eyob, 2023. "Is natural capital a blessing or a curse for capital accumulation in low income countries?," Resources Policy, Elsevier, vol. 85(PA).
    18. Adebayo, Tomiwa Sunday & Onifade, Stephen Taiwo & Alola, Andrew Adewale & Muoneke, Obumneke Bob, 2022. "Does it take international integration of natural resources to ascend the ladder of environmental quality in the newly industrialized countries?," Resources Policy, Elsevier, vol. 76(C).
    19. Khan, Samiha & Rahman, A.K.M. Atiqur & Saha, Tanaya & Alam, Mohammad Mahtab & Mahmood, Haider, 2024. "The role of Fintech in containing the carbon curse of natural resources: Evidence from resource-rich countries," Resources Policy, Elsevier, vol. 90(C).
    20. Ma, Yubo & Fan, Yufeng & Razzaq, Asif, 2023. "Influence of technical efficiency and globalization on sustainable resources management: Evidence from South Asian countries," Resources Policy, Elsevier, vol. 81(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jrpoli:v:88:y:2024:i:c:s0301420723012060. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/30467 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.