How export and import concentration influence natural resources and green growth nexus in OECD countries

Abstract

Green growth (GG) is a multifaceted phenomenon that maintains environmental sustainability with economic growth; however, the resource curse paradox inhibits economic growth. Therefore, it is indispensable to explore the promoting factors of GG, comprising export diversification (EXD), import diversification (IMPD), and natural resources (NR) for 33 selected OECD economies from 2010 to 2022. The system generalized moment method (System-GMM) is employed for empirical investigation, elucidating that EXD associates negatively with GG. However, IMPD significantly encourages the GG by unveiling the positive relationship. NR negatively associated with GG and confirms the resource curse hypothesis. The integrative impact of EXD and IMPD mitigates the resource curse, driving GG by 0.012% and 0.018%, respectively, implying that diversified trade structures in imports and exports convert the resource curse problem into a blessing. Besides, the alternative panel estimator affirms the empirical outcome endorsed by the system-GMM model. Among all variables, EXD, IMPD, and NR reveal the bi-directional causality, while remaining show the unidirectional association. The findings recommend valuable policy ramifications to policymakers of OECD countries in attaining green and low-carbon economies.