Combining the role of natural resources development and trade openness on economic growth: New evidence from linear and asymmetric analysis

Abstract

China is facing mounting economic and international pressure to address its pressing environmental issues and implement effective resource management strategies. This study explores the impact of sustainability initiatives, such as natural resource development and trade openness, from the perspective of China. Using pairwise Granger causality tests and autoregressive distributed lag limits to test for cointegration, the study analyzes the relationship between Sustainable Development Goals, trade openness, and the use of natural resources from 1980 to 2020. The empirical results suggest that green development of the Chinese economy and green trade policies can significantly enhance efficient resource utilization, leading to reduced environmental costs associated with natural resource usage, such as air pollution from coal. These findings have important implications for the implementation of green economic and environmental policies in China and suggest that reducing natural resource usage may benefit China's green commerce and economic growth.