Enhancing resources efficiency: Studying economic development in resource-rich regions for long-term sustainability of China

Abstract

Examining the relationship between increased resource efficiency and sustained economic growth in China's resource-rich areas is the objective of this study. Several econometric procedures are used to accomplish this goal, such as the Unit Root test, the Autoregressive Distributed Lag (ARDL) test, and the Vector Error Correction Model (VECM) analysis. The research uses Chinese data from 1980 to 2019, providing a long enough window for a thorough investigation of the correlation. The study's results enrich details on the economic dynamics of China's resource-rich areas. The ARDL test enables the analysis of long-term correlations between resource availability, economic growth, and environmental sustainability. In contrast, the findings of the Unit Root test are used to examine the stationarity qualities of the variables under research. The VECM analysis also makes it easier to investigate the immediate and long-term relationship between the variables. Using these methods, the research intends to thoroughly comprehend the intricate interplay between resource availability, economic growth, and sustainable behaviors in resource-rich areas. Policymakers and other stakeholders in China's resource management and economic growth have much to gain from considering the study's conclusions. This study may help policymakers improve resource efficiency and foster long-term economic development by identifying the elements leading to sustainability in resource-rich locations. These results have important implications for the long-term health and development of China's economy, as they may guide future studies and policy changes to promote sustainable economic growth in resource-rich regions.