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Fintech and sustainable resources management: Role of trade openness and globalization in BRICS countries

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  • Chen, Xiaoqian
  • Liu, Zhigang

Abstract

Enhancing environmental quality and optimizing resource efficiency has become a paramount policy priority among BRICS countries. The motivation to address the vulnerabilities of climate change has prompted the necessity to develop and discover the characteristics that can be utilized to assess and promote resource efficiency. While numerous research has examined various determinants of resource consumption, there is limited understanding of the effects of Fintech on consumption-based Material Footprint (MF). The evaluation of the environmental consequences of FinTech, particularly in relation to MF, is of utmost importance in advancing sustainable economic growth amidst continuing economic transitions. Hence, this study analyses Fintech's potential impacts on consumption-based MF in BRICS nations between 2001 and 2021. This will be achieved by controlling the influence of trade, globalization, and green innovation on the relationship above. The initial results strongly refute the assumption of data normality and emphasize that the apparent link is contingent upon quantiles. This finding suggests that prior studies employing linear approaches may have produced misleading outcomes. Method of Moments Quantile Regression (MMQR) addresses non-normality and structural changes in the data. The findings demonstrate that the development of Fintech, trade openness and globalization have a substantial positive impact on the resource's depletion. Globalization and trade effects mainly pronouns in medium quantiles (countries with medium level of MF). Contrary, green innovation reduce MF; however, the influence varies at lower and higher quantiles of MF. The positive relationship between economic growth and MF rises over the quantile. Two-way causality also exists between trade, green innovation and MF. This suggests that any policy intervention related to Fintech, green innovation, and globalization would reduce resource depletion.

Suggested Citation

  • Chen, Xiaoqian & Liu, Zhigang, 2024. "Fintech and sustainable resources management: Role of trade openness and globalization in BRICS countries," Resources Policy, Elsevier, vol. 90(C).
    • Handle: RePEc:eee:jrpoli:v:90:y:2024:i:c:s0301420724000679
    DOI: 10.1016/j.resourpol.2024.104700
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