Examining the resource curse phenomenon, digital finance integration, and their impacts on economic growth: Empirical insights from South Korea

Abstract

This study assesses the influence of the resource curse phenomenon on the sustainable economic growth of the Republic of Korea throughout the period from 1990 to 2021. Employing the Autoregressive Distributed Lag (ARDL) methodology, the research reveals that the resource curse phenomenon poses a hindrance to the attainment of environmentally friendly economic prosperity in Korea. Notably, digital finance exhibits a positive impact in the short term on green economic growth, while good governance emerges as a pivotal driver for sustained development over the long term. The consumption of renewable resources demonstrates a favorable coefficient, signifying its constructive effect on the promotion of green economic growth. Furthermore, Information and Communication Technology (ICT) emerges as a catalyst for fostering the environmentally conscious transformation of Korea's economy, particularly in the extended time frame. Practical recommendations include expanding sustainable power generation, advancing technologies for greener utilization of fossil fuels, developing technology-driven digital finance, addressing poverty, and championing environmentally friendly governance.