Relationship between the resource curse, Forest management and sustainable development and the importance of R&D Projects

Abstract

This study's objective is to examine the role of natural resources (NRS) in promoting sustainable development in industrialized economies, with a focus on G7 member states. Using data from 1990 to 2020, we employ rigorous panel data approaches, including second-generation unit root testing, slope heterogeneity analysis, an error correction cointegration approach, and cross-section dependency concerns. Given the nonlinear nature of the data distribution, we employ a cutting-edge approach known as moment quantile regression to accurately capture the correlations. The results indicate that NRS plays a significant role in promoting economic growth in the G7 nations. Alternative forms of energy and expenditure on research and development have been shown to have a negative effect on long-term economic growth. In contrast, forests have a long-term positive impact on sustainable performance. The findings, which are supported by quantile regression analysis, emphasize the significance of each factor in determining the aggregate results. Based on these findings, the report makes recommendations for increasing investments in R&D and maximizing the use of NRS and forests to improve the sustainable performance of regional ecosystems. In addition, it highlights the importance of confronting forestry and forest management practices to advance sustainability initiatives. These evidence-based recommendations aim to mitigate several aspects of environmental deterioration in the considered setting.