Does fintech positively moderate the impact of mineral resources on green growth? Role of economic policy uncertainty in OECD economies

Abstract

Resource curse remains a dilemma for the resource-endowed OECD countries, whereas consistent mineral resource utilization impedes green growth. However, fintech innovations are imperious in transforming the economic landscape and resource curse paradox. Therefore, our study elucidates the impact of Fintech, economic policy uncertainty (EPU), and mineral resource rents on green growth. For empirical exploration, the generalized method of moment (GMM) was employed from 2014 to 2022 in selected OECD countries. The empirical outcomes reveal that mineral resource rents hinder green growth, affirming the resource curse hypothesis. Similarly, EPU exerts negative impacts on green growth. On the other side, Fintech is a stimulator of green growth, demonstrating a positive linkage. The moderation covariates of fintech measures with the mineral industry have immense potential to reduce adverse economic effects and significantly promote green growth. The alternative estimator echoes identical findings with different magnitudes and signs to affirm estimated outcomes. This research suggests valuable policy implications for OECD economies to disseminate fintech adoption in curbing harmful economic uncertainty and resource erosion in the green transition.