Channelizing the importance of natural resources and renewable energy for financial development: Resources curse perspective for high growth countries

When focused on sustainable economic growth, NRR, and other factors, financial expansion is a crucial aspect that circles most variables; it is primarily concerned with financial development. The present research examines how natural resource rents, economic expansion, and financial expansion are intertwined in high-growth nations. From 1989 to 2021, the efficient contribution of renewable power production and technical improvement is also included. The research employed slope heterogeneity and the CD test, which is present when economies are present, and then used the CIPS test to assess the unit roots of the co-variates. The research examined long-term cointegration using Westerlund cointegration methodologies in addition to CD across economies. According to the findings, variables are stable at the difference and there is a long-term equilibrium among them. The non-parametric new MMQR technique was used to evaluate the main results, which show that NR has a curse in high-growth nations across all quantiles. GDP and technology advancements enhance financial development, however, renewable power production hurts it in high-growth nations. Additionally, the robustness check study is supported by parametric and non-parametric methods, including FMOLS and DOLS, as well as Quantile regression, which suggests that the robustness outputs are comparable to and valid for the innovative MMQR estimations. In light of the results, the report makes important policy recommendations to decision-makers for the responsible use of NR, economic expansion, promotion of renewable energy sources, and technical advancement for sound financial development.