Towards resourceful sustainability: Integrating minerals resources in achieving development goals

Abstract

Amid growing concerns over the sustainability of resource-driven economies, understanding the specific roles of diverse natural resources becomes crucial. This research delves into the nuanced impacts of various natural resources on economic growth in resource-affluent economies from 1989 to 2022, an area previously overshadowed by generalized studies. Specifically, it evaluates the differential contributions of oil rents (ORNT), natural gas rents (NGRNT), and mineral rents (MNRNT) to sustainable development. Employing rigorous analytical techniques, including diverse panel data methods and the Kao test, the study reveals that oil rents significantly bolsters economic growth, presenting a ‘resource blessing’. In contrast, natural gas and mineral rents tend to precipitate a ‘resource curse’. Crucially, the research underscores the role of population dynamics and energy utilization in these economies, identifying a bidirectional causality between oil rents and energy use, and a unidirectional one with population growth. Interestingly, no causality was observed for natural gas rents and mineral rents. These insights advocate for tailored economic policies that maximize the benefits of oil rents while counteracting the detrimental effects of natural gas and mineral rents, emphasizing efficient resource management for sustainable growth.