The Nexus Between Natural Resources, Renewable Energy and Economic Growth in the Gulf Cooperation Council Countries

In sustainable development studies, a key question is how the abundance of natural resources influences long-run economic growth. However, there is no consensus on this issue. Some literature suggests a negative impact, while other studies find no effect at all, and other research indicates a positive impact. This study aims to examine the relationship between natural resource rents, renewable energy, and economic growth in the Gulf Cooperation Council (GCC) countries over the period from 1990 to 2023. The study utilizes the Method of Moments Quantile Regression (MMQR) to provide reliable findings across different quantiles. We also incorporate a series of control variables, including capital, labor force participation, non-renewable energy, and trade openness. The findings indicate that natural resources rent enhances economic growth in GCC countries, supporting the Rostow hypothesis. Although renewable energy has a positive impact on economic growth, it does not have an effect on natural resource rents. Additionally, capital, labor force participation, non-renewable energy, and trade openness play a critical role in raising economic growth in these countries. Based on the empirical results, this study provides several valuable recommendations for policymakers to enhance the management of natural resources in GCC countries.