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Is natural resources curse possible under the digitalization? A loon on top digitalized economies

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  • Zou, Qizhi
  • Wu, Qian
  • Wang, Jia

Abstract

The term “green growth” describes an approach to economic development that is gentler on the planet's natural resources, especially the environment. Despite the widespread agreement that technological advances in information and communication boost economic development and benefit many industries in today's interconnected world, there is growing concern that these same advancements might have unintended consequences for environmental quality. This research examines the 25 most digitalized nations and how industrialization, natural resource extraction, and information and communication technology have contributed to GDP growth. The chosen nations' data is gathered from 2000 to 2022. The predictor elasticity of impact on the explanatory variable was estimated using the short run and long estimates of the CS-ARDL test and robust checking using the AMG test, MG test, and CCEMG estimators. According to the results, natural resources (NR) have a small but favorable impact on GDP expansion within fully digitalized markets. On the other hand, industrial development and information and communication technology (ICT) both have positive and statistically significant coefficients, which means that increasing these variables would raise GDP. Economic development is positively influenced by urbanization and political stability and negatively impacted by carbon emissions (CO2). The DK-SE test, MMQR, and Dynamic Ordinary Least Squares (DOLS) confirmed the results. Policymakers in the nation may find this study particularly relevant due to the fresh conclusions it contributes to the existing literature on digital technology's impact on economic growth.

Suggested Citation

  • Zou, Qizhi & Wu, Qian & Wang, Jia, 2024. "Is natural resources curse possible under the digitalization? A loon on top digitalized economies," Resources Policy, Elsevier, vol. 92(C).
    • Handle: RePEc:eee:jrpoli:v:92:y:2024:i:c:s0301420724002800
    DOI: 10.1016/j.resourpol.2024.104913
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