Sustainable development through digital innovation: A new era for natural resource extraction and trade

Abstract

Despite the recognized significance of natural resources for economic development, many resource-rich nations struggle to realize their potential, creating a dichotomy in the literature. This study dissects the role of natural resources in fostering sustainable commerce in BRICS nations from 1988 to 2021, a novel exploration incorporating significant control variables such as digitalization, research and development, and GDP. By utilizing panel data from 1988 to 2021, we employ appropriate panel data econometrics techniques to explore long-term relationships. Our findings reveal that while minerals and natural resource rents positively influence sustainable trade, oil rents impede it. Digitalization and economic growth also emerge as key facilitators, whereas renewable energy expenditure negatively affects sustainable trade in the long run. This study provides pivotal insights into the complex dynamics between natural resources and sustainable trade, guiding policy recommendations for optimizing economic outcomes in resource-rich economies.