Integrating FinTech with Industry 4.0 for sustainable mineral resource management: Exploring the interplay of technology, regulation, and economic dynamics

Abstract

In the field of global geology, the intricate relationship between Earth’s mineral resources and their pivotal role in fostering sustainable human development is a fundamental area of scholarly investigation. This research thoroughly explores the complex dynamics between technological progress, financial innovations, and regulatory structures in the context of sustainable management of mineral resources. Covering the period from 2000 to 2022 and including key international stakeholders in the mineral industry, the study employs a Panel Autoregressive Distributed Lag (ARDL) approach to assess the effects of Industry 4.0 technologies (IND), Financial Technology (FinTech), Regulatory Quality (RQ), Energy Efficiency (EF), and per capita Gross Domestic Product (GDP) on Mineral Resource Capital (MRC). The results reveal a substantial, positive long-term influence of Industry 4.0 on Mineral Resource Capital, underscoring the essential role of technology. Conversely, FinTech exhibits a nuanced association with Mineral Resource Capital, indicating the necessity for its careful incorporation. The analysis highlights the significance of regulatory quality in the sustainable management of resources, while the negative impact of energy efficiency points towards the need for more sustainable industrial practices. Through variance decomposition and impulse response analysis, the study delineates the responsiveness of Mineral Resource Capital to various economic fluctuations, with Granger causality tests offering additional insight into these complex interactions. This investigation contributes significantly to the existing scholarly literature and offers crucial perspectives for policy-makers and industry participants, advocating for a cohesive strategy that effectively harnesses technological and financial innovations to enhance sustainability and economic resilience in the mineral sector.