Measuring the role of consuming natural resource domination and social media for green economic recovery

Abstract

Natural resource and economic development have been linked for more than three decades, and the dispute continues. The volatility of natural resource pricing has become more important since natural resource prices and media economy play a critical role in economic development, which is comparatively understudied. Researchers and scholars see new tendencies in the natural resources price volatility, media economy and productivity growth nexus. Natural resource volatility might negatively influence a country's or region's economic growth and media economy is positively correlated with development of green economic recovery. As a result, the present research tries to determine the link between natural resources, media economy while evaluating the importance of green innovation in European Union economies between 1990 and 2021. CS-ARDL findings showed that natural resource volatility, oil rents, gas rents, media economy (entertainment, advertising, social media, music, games, internet media, theatre and art) and green innovation had a favorable impact on economic efficiency in both the short and long term. According to the long-run estimator enhanced mean group, these findings are well supported (AMG). In addition, the Granger panel causality heterogeneity test conducted by Dumitrescu and Hurlin reveals a bidirectional causal relationship between the variables under consideration and economic growth. As a result of the results, it is suggested that green marketing, price caps, and hedging of natural resources might all be effective ways to enhance financial efficiency and decrease the unpredictability of natural resource prices in the area.