Fueling green growth: Unveiling the catalyst of mineral resource trade in diverse economies

Abstract

This comprehensive study examines the impact of mineral resource trade on green economic growth in 17 high-income and 15 low-income economies during the period 2005 to 2021, employing the SYS-GMM approach. The findings reveal that mineral resource trade positively influences green economic growth in both income groups, with a 1% increase leading to a 0.27% boost in high-income economies and a more substantial 0.64% increase in low-income economies. Factors like urban population, electricity consumption, and poverty rates hinder green growth in both groups, while internet access drives it by promoting digital transformation. Foreign Direct Investment (FDI) affects high-income countries positively but has an adverse impact on low-income nations, primarily due to their resource-intensive industries. Practical strategies are recommended for each group, with high-income economies focusing on green logistics, FDI attraction, education, and digitalization, while low-income countries should prioritize sustainable mining practices, aligning FDI with sustainability goals, investing in education, and embracing digitalization to promote green economic growth.