IDEAS home Printed from https://ideas.repec.org/a/eee/jrpoli/v81y2023ics0301420723000363.html
   My bibliography  Save this article

Nexus of natural resources, urbanization and economic recovery in Asia: The moderating role of innovation

Author

Listed:
  • xin, Liu
  • Vu, Trong Lam
  • Phan, Thi Thu Hien
  • Sadiq, Muhammad
  • Xuyen, Nguyen Thi My
  • Ngo, Thanh Quang

Abstract

Despite their population, Asian countries have failed to provide full economic recovery, and what recovery has occurred may be short-lived if they do not protect the environment. Asian nations' economic recovery from the Asian Financial crisis (1997–1998) is examined in this study, with a focus on the consequences of globalization, economic growth, financial development, natural resource utilization and innovation. Econometric approaches that can handle cross-sectionally dependent panel datasets are used to determine the environmental implications of these variables over the period 1980 to 2016. This work uses the second-generation panel unit root and long-run cointegration tests for robust and reliable results. There is a mixed order of integration for the variables, which are cointegrated. The long-term regressions show increased economic recovery due to natural resource use, while technological advancement reduces economic recovery. The results suggest that financial development and eco-innovation enhance economic recovery, whereas urbanization accelerates environmental deterioration by increasing the ecological footprint. This study recommends that Asian countries become more financially incorporated, fund environmental initiatives, support environmental modernization and accelerate economic recovery rates through their energy production and consumption.

Suggested Citation

  • xin, Liu & Vu, Trong Lam & Phan, Thi Thu Hien & Sadiq, Muhammad & Xuyen, Nguyen Thi My & Ngo, Thanh Quang, 2023. "Nexus of natural resources, urbanization and economic recovery in Asia: The moderating role of innovation," Resources Policy, Elsevier, vol. 81(C).
    • Handle: RePEc:eee:jrpoli:v:81:y:2023:i:c:s0301420723000363
    DOI: 10.1016/j.resourpol.2023.103328
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301420723000363
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.resourpol.2023.103328?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. González-Eguino, Mikel, 2015. "Energy poverty: An overview," Renewable and Sustainable Energy Reviews, Elsevier, vol. 47(C), pages 377-385.
    2. Ferraris, Alberto & Bogers, Marcel L.A.M. & Bresciani, Stefano, 2020. "Subsidiary innovation performance: Balancing external knowledge sources and internal embeddedness," Journal of International Management, Elsevier, vol. 26(4).
    3. Nielsen, Max & Ravensbeck, Lars & Nielsen, Rasmus, 2014. "Green growth in fisheries," Marine Policy, Elsevier, vol. 46(C), pages 43-52.
    4. G Tomas M Hult & David J Ketchen & David A Griffith & Carol A Finnegan & Tracy Gonzalez-Padron & Nukhet Harmancioglu & Ying Huang & M Berk Talay & S Tamer Cavusgil, 2008. "Data equivalence in cross-cultural international business research: assessment and guidelines," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 39(6), pages 1027-1044, September.
    5. Ricci, Riccardo & Battaglia, Daniele & Neirotti, Paolo, 2021. "External knowledge search, opportunity recognition and industry 4.0 adoption in SMEs," International Journal of Production Economics, Elsevier, vol. 240(C).
    6. Kazuhiro Asakawa & YeonJin Park & Jaeyong Song & Sang-Ji Kim, 2018. "Internal embeddedness, geographic distance, and global knowledge sourcing by overseas subsidiaries," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 49(6), pages 743-752, August.
    7. Song, Malin & Xie, Qianjiao & Shen, Zhiyang, 2021. "Impact of green credit on high-efficiency utilization of energy in China considering environmental constraints," Energy Policy, Elsevier, vol. 153(C).
    8. Bai, Xiao & Wang, Kuan-Ting & Tran, Trung Kien & Sadiq, Muhammad & Trung, Lam Minh & Khudoykulov, Khurshid, 2022. "Measuring China’s green economic recovery and energy environment sustainability: Econometric analysis of sustainable development goals," Economic Analysis and Policy, Elsevier, vol. 75(C), pages 768-779.
    9. Stefan Bouzarovski & Sergio Tirado Herrero, 2017. "Geographies of injustice: the socio-spatial determinants of energy poverty in Poland, the Czech Republic and Hungary," Post-Communist Economies, Taylor & Francis Journals, vol. 29(1), pages 27-50, January.
    10. Tsai, Fu-Sheng & Cabrilo, Sladjana & Chou, Hsin-Hui & Hu, Feng & Tang, Au Due, 2022. "Open innovation and SME performance: The roles of reverse knowledge sharing and stakeholder relationships," Journal of Business Research, Elsevier, vol. 148(C), pages 433-443.
    11. Zhao, Linhai & Chau, Ka Yin & Tran, Trung Kien & Sadiq, Muhammad & Xuyen, Nguyen Thi My & Phan, Thi Thu Hien, 2022. "Enhancing green economic recovery through green bonds financing and energy efficiency investments," Economic Analysis and Policy, Elsevier, vol. 76(C), pages 488-501.
    12. Zihan Li & Yazhen Gong & Kevin Z. Chen, 2018. "Energy use and rural poverty: empirical evidence from potato farmers in northern China," China Agricultural Economic Review, Emerald Group Publishing Limited, vol. 11(2), pages 280-298, December.
    13. Awaworyi Churchill, Sefa & Smyth, Russell, 2021. "Energy poverty and health: Panel data evidence from Australia," Energy Economics, Elsevier, vol. 97(C).
    14. Lan, Jing & Khan, Sufyan Ullah & Sadiq, Muhammad & Chien, Fengsheng & Baloch, Zulfiqar Ali, 2022. "Evaluating energy poverty and its effects using multi-dimensional based DEA-like mathematical composite indicator approach: Findings from Asia," Energy Policy, Elsevier, vol. 165(C).
    15. Scuotto, Veronica & Beatrice, Orlando & Valentina, Cillo & Nicotra, Melita & Di Gioia, Leonardo & Farina Briamonte, Massimiliano, 2020. "Uncovering the micro-foundations of knowledge sharing in open innovation partnerships: An intention-based perspective of technology transfer," Technological Forecasting and Social Change, Elsevier, vol. 152(C).
    16. Sterner, Thomas & Damon, Maria, 2011. "Green growth in the post-Copenhagen climate," Energy Policy, Elsevier, vol. 39(11), pages 7165-7173.
    17. Cheng, Zhiming & Tani, Massimiliano & Wang, Haining, 2021. "Energy poverty and entrepreneurship," Energy Economics, Elsevier, vol. 102(C).
    18. Aristondo, Oihana & Onaindia, Eneritz, 2018. "Counting energy poverty in Spain between 2004 and 2015," Energy Policy, Elsevier, vol. 113(C), pages 420-429.
    19. Nicolai J. Foss & Kenneth Husted & Snejina Michailova, 2010. "Governing Knowledge Sharing in Organizations: Levels of Analysis, Governance Mechanisms, and Research Directions," Journal of Management Studies, Wiley Blackwell, vol. 47(3), pages 455-482, May.
    20. Khanna, Rupali A. & Li, Yanfei & Mhaisalkar, Subodh & Kumar, Mahesh & Liang, Lim Jia, 2019. "Comprehensive energy poverty index: Measuring energy poverty and identifying micro-level solutions in South and Southeast Asia," Energy Policy, Elsevier, vol. 132(C), pages 379-391.
    21. Radziwon, Agnieszka & Bogers, Marcel, 2019. "Open innovation in SMEs: Exploring inter-organizational relationships in an ecosystem," Technological Forecasting and Social Change, Elsevier, vol. 146(C), pages 573-587.
    22. Mohsin Ali & Mansor H. Ibrahim & Mohamed Eskandar Shah, 2022. "Impact Of Non-Intermediation Activities Of Banks On Economic Growth And Volatility: An Evidence From Oic," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 67(01), pages 333-348, March.
    23. Chien, FengSheng & Chau, Ka Yin & Sadiq, Muhammad & Hsu, Ching-Chi, 2022. "The impact of economic and non-economic determinants on the natural resources commodity prices volatility in China," Resources Policy, Elsevier, vol. 78(C).
    24. Jörg Henseler & Marko Sarstedt, 2013. "Goodness-of-fit indices for partial least squares path modeling," Computational Statistics, Springer, vol. 28(2), pages 565-580, April.
    25. Awaworyi Churchill, Sefa & Smyth, Russell & Farrell, Lisa, 2020. "Fuel poverty and subjective wellbeing," Energy Economics, Elsevier, vol. 86(C).
    26. Stefan Bouzarovski, 2014. "Energy poverty in the European Union: landscapes of vulnerability," Wiley Interdisciplinary Reviews: Energy and Environment, Wiley Blackwell, vol. 3(3), pages 276-289, May.
    27. Zhen Liu & Tong Yin & Ahmad Romadhoni Surya Putra & Muhammad Sadiq, 2022. "Public Spending As A New Determinate Of Sustainable Development Goal And Green Economic Recovery: Policy Perspective Analysis In The Post-Covid Era," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 13(03), pages 1-26, August.
    28. Bouzarovski, Stefan & Petrova, Saska & Sarlamanov, Robert, 2012. "Energy poverty policies in the EU: A critical perspective," Energy Policy, Elsevier, vol. 49(C), pages 76-82.
    29. Karásek, Jiří & Pojar, Jan, 2018. "Programme to reduce energy poverty in the Czech Republic," Energy Policy, Elsevier, vol. 115(C), pages 131-137.
    30. Françoise Bartiaux & Rosie Day & Willy Lahaye, 2021. "Energy Poverty as a Restriction of Multiple Capabilities: A Systemic Approach for Belgium," Journal of Human Development and Capabilities, Taylor & Francis Journals, vol. 22(2), pages 270-291, April.
    31. Albats, Ekaterina & Alexander, Allen & Mahdad, Maral & Miller, Kristel & Post, Ger, 2020. "Stakeholder management in SME open innovation: interdependences and strategic actions," Journal of Business Research, Elsevier, vol. 119(C), pages 291-301.
    32. Meixia Wang & Huiping Wang, 2022. "RETRACTED ARTICLE: Knowledge search and innovation performance: The mediating role of absorptive capacity," Operations Management Research, Springer, vol. 15(3), pages 1060-1070, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Tran, Trung Kien & Lin, Chia-Yang & Tu, Yu-Te & Duong, Nam Tien & Pham Thi, Thuy Dung & Shoh-Jakhon, Khamdamov, 2023. "Nexus between natural resource depletion and rent and COP26 commitments: Empirical evidence from Vietnam," Resources Policy, Elsevier, vol. 85(PB).
    2. Liu, Meihan & Baisheng, Shi & Alharthi, Majed & Hassan, Muhammad Shahid & Hanif, Imran, 2023. "The role of natural resources, clean energy and technology in mitigating carbon emissions in top populated countries," Resources Policy, Elsevier, vol. 83(C).
    3. Sadiq, Muhammad & Chavali, Kavita & Kumar, V.V. Ajith & Wang, Kuan-Ting & Nguyen, Phong Thanh & Ngo, Thanh Quang, 2023. "Unveiling the relationship between environmental quality, non-renewable energy usage and natural resource rent: Fresh insights from ten asian economies," Resources Policy, Elsevier, vol. 85(PA).
    4. Liu, Bailu & Tian, Jilin, 2023. "Natural resources led innovation: Employing structural break approach to explore USA's natural resources sector," Resources Policy, Elsevier, vol. 85(PA).
    5. Ahakwa, Isaac & Xu, Yi & Tackie, Evelyn Agba & Odai, Leslie Afotey & Sarpong, Francis Atta & Korankye, Benard & Ofori, Elvis Kwame, 2023. "Do natural resources and green technological innovation matter in addressing environmental degradation? Evidence from panel models robust to cross-sectional dependence and slope heterogeneity," Resources Policy, Elsevier, vol. 85(PB).
    6. Telfah, Sadeq & Chau, Ka Yin & Tran, Trung Kien & Bui, Anh Tuan & Tai, Nguyen Tan & Phan, Thi Thu Hien, 2023. "Role of financial markets and natural resource utilization in green economic recovery: Evidence from selected developing economies," Resources Policy, Elsevier, vol. 83(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Xiuzhen, Xie & Zheng, Wenxiu & Umair, Muhammad, 2022. "Testing the fluctuations of oil resource price volatility: A hurdle for economic recovery," Resources Policy, Elsevier, vol. 79(C).
    2. Shahzad, Umer & Gupta, Mansi & Sharma, Gagan Deep & Rao, Amar & Chopra, Ritika, 2022. "Resolving energy poverty for social change: Research directions and agenda," Technological Forecasting and Social Change, Elsevier, vol. 181(C).
    3. Hsu, Ching-Chi, 2023. "Influence of climate finance and natural resource consumption on the mitigation of climate change in developed countries in the Pre-COP26 era," Resources Policy, Elsevier, vol. 83(C).
    4. Li, Li, 2023. "Commodity prices volatility and economic growth: Empirical evidence from natural resources industries of China," Resources Policy, Elsevier, vol. 80(C).
    5. Fang, Ming & Chang, Chiu-Lan, 2023. "The role of COP26 commitment and technological innovation in depletion of natural resources: Evidence from BRICS countries," Resources Policy, Elsevier, vol. 81(C).
    6. Recep Ulucak & Ramazan Sari & Seyfettin Erdogan & Rui Alexandre Castanho, 2021. "Bibliometric Literature Analysis of a Multi-Dimensional Sustainable Development Issue: Energy Poverty," Sustainability, MDPI, vol. 13(17), pages 1-21, August.
    7. Nguyen, Tran Thai Ha & Tu, Yu-Te & Diep, Gia Luat & Tran, Trung Kien & Tien, Nguyen Hoang & Chien, FengSheng, 2023. "Impact of natural resources extraction and energy consumption on the environmental sustainability in ASEAN countries," Resources Policy, Elsevier, vol. 85(PA).
    8. Chien, FengSheng & Chau, Ka Yin & Sadiq, Muhammad, 2023. "Impact of climate mitigation technology and natural resource management on climate change in China," Resources Policy, Elsevier, vol. 81(C).
    9. Rafał Nagaj, 2022. "Macroeconomic Policy versus Fuel Poverty in Poland—Support or Barrier," Energies, MDPI, vol. 15(13), pages 1-22, June.
    10. Chien, FengSheng & Paramaiah, Ch & joseph, Robinson & Pham, Hong Chuong & Phan, Thi Thu Hien & Ngo, Thanh Quang, 2023. "The impact of eco-innovation, trade openness, financial development, green energy and government governance on sustainable development in ASEAN countries," Renewable Energy, Elsevier, vol. 211(C), pages 259-268.
    11. Ade Banani & Bambang Sunarko, 2022. "Nexus between Green Finance, Creativity, Energy Accounting and Financial Performance: Banks Sustainability Analysis from Developing Country," International Journal of Energy Economics and Policy, Econjournals, vol. 12(6), pages 447-455, November.
    12. Miar & Sunaryo Neneng & Jeky Melkianus Sui, 2022. "The Impact Covid-19 Outbreak, Green Finance, Creativity and Sustainable Economic Development on the Economic Recovery in G20 Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 12(6), pages 432-440, November.
    13. Ma, Mengjuan & Zhu, Xiao & Liu, Meishan & Huang, Xiaodong, 2023. "Combining the role of green finance and environmental sustainability on green economic growth: Evidence from G-20 economies," Renewable Energy, Elsevier, vol. 207(C), pages 128-136.
    14. Nguyen, Canh Phuc & Nasir, Muhammad Ali, 2021. "An inquiry into the nexus between energy poverty and income inequality in the light of global evidence," Energy Economics, Elsevier, vol. 99(C).
    15. Kadarisman Hidayat & Diana Zuhroh, 2023. "The Impact of Environmental, Social and Governance, Sustainable Financial Performance, Ownership Structure, and Composition of Company Directors on Tax Avoidance: Evidence from Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 13(6), pages 311-320, November.
    16. Cheng, Zhiming & Guo, Liwen & Smyth, Russell & Tani, Massimiliano, 2022. "Childhood adversity and energy poverty," Energy Economics, Elsevier, vol. 111(C).
    17. Pilar Murias & Beatriz Valcárcel-Aguiar & Rosa María Regueiro-Ferreira, 2020. "A Territorial Estimate for Household Energy Vulnerability: An Application for Spain," Sustainability, MDPI, vol. 12(15), pages 1-21, July.
    18. Gu, Jiafeng, 2023. "Energy poverty and government subsidies in China," Energy Policy, Elsevier, vol. 180(C).
    19. Nanang Dwi Wahyono & Niswatin Hasanah & Rita Parmawati, 2022. "The Role of Socio-economic Conditions, Energy Consumption, and Environmental Conditions on the Livestock Production in Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 12(6), pages 486-494, November.
    20. Chang, Lei & Shi, Fanglan & Taghizadeh-Hesary, Farhad & Saydaliev, Hayot Berk, 2023. "Information and communication technologies development and the resource curse," Resources Policy, Elsevier, vol. 80(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jrpoli:v:81:y:2023:i:c:s0301420723000363. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/30467 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.