Exploring the interplay of resource utilization, human capital, and FDI in enhancing national well-being: Evidence from OECD countries

This study explores the multidimensional connections between natural resources and the well-being of people. This study sheds light on the multifaceted interactions that create societal well-being by investigating the dynamics of natural resource utilization, human capital development, and foreign direct investment within OECD member nations. An extensive panel data collection, including 23 OECD member economies from 2009 to 2018, is used in the empirical investigation. It goes beyond the conventional one-dimensional approach to well-being by creating a comprehensive deprivation (Well-being) index. The multipart connection between natural resources and well-being is examined using econometric methods, such as fixed-effect regression with Drisc/Krayy standard error structure. Strategic resource management, human capital investment, and inclusive growth through FDI have all been shown to improve well-being, contradicting common beliefs about the resource curse. This study shows that natural resources have a significant and positive impact on the well-being of people, suggesting that natural resources are a blessing for the people. The study also emphasizes how crucial sustainable environmental practices, improved institutional quality, and balanced economic growth are to promoting overall development. In addition to providing critical scientific insights, this study also has concrete policy recommendations for governments looking to improve the lives of their populations. Policymakers may navigate the complexity of resource-rich economies while prioritizing the well-being of their citizens by embracing responsible resource management practices, investing in human capital development, and encouraging inclusive growth. Sustainable development practices are advocated for beyond economic measurements and include social and environmental components, and lessons derived from the successful experiences of OECD member nations serve as a guide for global collaboration and knowledge exchange.