RETRACTED: Financial development, financial inclusion and natural resource management for sustainable development: Empirical evidence from Asia

Abstract

A nation's economy relies heavily on the interplay of the nexus between the financial sector and the income generated by its natural resources. The key reasons for doing this research are the recent advancement and significant rise in the academic literature about the resource‐finance nexus. This study aims to assess the impact of financial development, financial inclusion and natural resources development on environmental sustainability in Asia's presence of renewable sources and foreign direct investment from 2000 to 2020. We used the Cross‐section dependency and second‐generation unit root tests to fix the data. Panel threshold model findings, the significant research model, reveal that green innovation significantly affects environmental sustainability and is an efficient method for lowering pollution levels. The strong correlation between financial growth and environmental sustainability further underscores the importance of financial development in resolving environmental concerns. Granger causality demonstrates the strong long‐run influence of financial growth and natural resources management on environmental sustainability in leading countries. The robustness of the GMM test ensures the validity of the research conclusions. This research is useful because it informs policymakers and other interested parties about the significance of green innovation and financial development in reducing environmental consequences while emphasizing the relevance of energy choices in achieving long‐term environmental goals.