Abstract
While natural resource and financial growth have been researched extensively, the impact of corporate social responsibility on green economic growth through the incorporation of corporate regulations has received less attention. Empirical conclusions are supported by a balanced panel of data collected annually on resource-rich countries in China between 1992 and 2018. Multiple econometric issues, such as the existence of heterogeneity among the selected countries, can be tackled with the help of the PMG-ARDL method. There is evidence of cointegration between the variables according to the Johansen Fisher Panel Cointegration Test and the Kao Test. The findings of the PMG-ARDL suggest a favorable long-term relationship between resource income and public debt, but a negative short-term relationship. Public debt sustainability in the panel nations is threatened by their over-reliance on total natural resource rents if efficient fiscal and financial administration reforms are neglected. The Vector Error Correction Model (VECM) used in this panel establishes a causal relationship between available resources and the level of state debt. There is empirical data to back up the fiscal curse theory. If regulations are not in place to protect natural resources, they could impede economic development. The financial resource curse may be eased if China adopted more business-friendly regulations. Assuming this condition is met, policy recommendations for sustaining natural resource rent-related gains in economic development may be developed.
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Fu, F. Natural resources and financial development: Role of corporate social responsibility on green economic growth in China. Environ Sci Pollut Res 30, 115111–115124 (2023). https://doi.org/10.1007/s11356-023-30133-3
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DOI: https://doi.org/10.1007/s11356-023-30133-3