Sustainable development perspective of linking natural resources and human capital development: An overview of resources utilization

Abstract

Human capital is a substantial indicator of economic expansion, natural resources, and environmental quality. Still, the current literature lacks the empirical influence of natural resources on human capital from the sustainable development perspective. This study tends to examine the impact of coal, mineral, and oil rents on human capital while considering the importance of economic growth and globalization. This study examined the lengthy period from 1973 to 2021 in the case of China due to the higher population and skilled workers. Using the time series cointegration approach, the study validates the significant long-run connection between the variables. This study utilizes various parametric and non-parametric approaches and explores how coal and oil rents encourage human capital development while mineral rents reduce it. In contrast, increased economic growth and globalization significantly encourage the region’s human capital development. The stability and robustness of the results are validated by a number of statistical tests. This study suggests further investment in education, research, and development and encourages awareness sessions to improve human capital.