The role of foreign trade and technology innovation on economic recovery in China: The mediating role of natural resources development

• Published in: Resources policy Vol. 80; p. 103121
• Main Authors: Hasan, Mohammad Maruf, Du, Fang
• Format: Journal Article
• Language: English
• Published: England Elsevier Ltd 01.01.2023
• Subjects: Ecological footprint; Economic recovery; Foreign trade; Natural resources volatility; Technology innovation; Technology innovation; Natural resources volatility; Ecological footprint; Economic recovery; Foreign trade
• ISSN: 0301-4207; 1873-7641; 1873-7641
• DOI: 10.1016/j.resourpol.2022.103121

The coronavirus disease (COVID-19) has caused the most recent global economic collapse, which severely impacted worldwide economic operations. Natural resource volatility significantly affects global economic recovery. Therefore, the study aims to determine the significance of natural resource volatility, foreign trade, technological innovation, urbanisation, and investment in energy resources on the economic recovery of Chinese provinces. A total of 30 provinces in China were examined between 1995 and 2020. The generalised method of movement (GMM) technique was used to demonstrate that investments in energy sector resources, international commerce, and technological innovation are inconsistent than gross domestic product (GDP) and natural resources. The results demonstrated how trade blocs limit the effect of natural resources on regional economic development in the central provinces. Specifically, 33.4% of energy was saved while 35.2% of emissions were reduced. Although abundant natural resources significantly influence economic growth, studies discovered a negative impact on urbanisation. Nonetheless, the positive effects of trade openness outweighed those of economic recovery. The study proposed stabilising the fluctuating costs of natural resources, encouraging green financing, and increasing investment in energy resources. The findings also provided a novel strategy for achieving high economic growth and recovery. •Natural resource development and renewable energy for eco-friendly activities and the expansion of a green economy.•Major financial innovation, green finance is a critical driver for green economic growth.•Trade balance used as a proxy for global trade as a proportion of GDP.