Capital accumulation and sustainable development in developing economies; role of natural resources development

Abstract

In the realm of economic development, the intricate interplay among capital accumulation, sustainable growth, and natural resource utilization has gained notable attention. This study delves into the connection between capital accumulation and sustainable development in developing economies, specifically highlighting the role of natural resource development. Employing the PVAR (Panel Vector Autoregression) model, data from 124 countries spanning 1980 to 2018 is analyzed. By examining the dynamic interactions between capital accumulation, natural resource development, and sustainable indicators, this research offers insights into their influences within developing economies. First, a positive correlation is found between increased capital accumulation and enhanced sustainable development indicators, emphasizing the impact of investments in physical and human capital. Second, the study underscores the intricate relationship between natural resource development and sustainable progress, revealing diverse impacts across nations. These findings have crucial implications for policymakers and researchers striving for balanced development while preserving natural resources for future generations.