Time-Varying linkages among financial development, natural resources utility, and globalization for economic recovery in China

Abstract

The relationship between the availability of natural resources and environmental degradation give rise to significant ecological effects. Recognizing the importance of natural resources, urbanization, and human capital is essential for rapid economic growth. Therefore, it is crucial to consider the factors which contribute to environmental sustainability, by examining the connections between China's total natural resources, gross domestic product (GDP), urbanization, and economic recovery from 1980 to 2018. In this study, the dynamic autoregressive distributed lag (ARDL) model was used. These findings demonstrate that an increase in natural resources negatively impacts economic development in the long run. However, long-term gains in financial development and natural resources have led to higher economic recovery. Finally, urbanization has a significant and negative long-term effect on green economic growth. This study recommends management strategies for increasing urbanization and reducing the associated urban, environmental, and economic difficulties for policymakers and government authorities.