How do mineral resources trade and financial development affect green entrepreneurship in resource-rich economies?

Abstract

Green entrepreneurship achieves a win-win situation of economic well-being and environmental protection. The role of trade in natural resources and the growth of the financial sector in influencing green entrepreneurship has come under growing attention as the worldwide quest for sustainable development becomes more intense. This study explores the complex interactions between the trade in natural resources and financial development and how these factors affect the development and emergence of green entrepreneurship in resource-rich economies. To that end, we have applied the novel GMM panel VAR technique. The main findings of the GMM panel VAR revealed that financial development and mineral trade positively influence green entrepreneurship. The results also suggest that any change in financial development and mineral causes a change in green entrepreneurship. Understanding the positive influence of financial development and mineral resources trade on green entrepreneurship can guide policymakers in designing effective strategies that promote sustainable green growth.