Resource curse, energy consumption, and moderating role of digital governance: Insights from South Asian countries

Abstract

This study investigates the relationships between the resource curse, energy consumption, and the moderating role of digital governance within the context of South Asian countries. By employing a robust analytical framework, the study delves into how digital governance can potentially mitigate the adverse effects of the resource curse while influencing energy consumption patterns. It employs Method of Moment Quantile Regression (MMQR) on south asian countries panel from 2003 to 2022. The findings report detrimental impact of natural resources rent on economic growth, confirming resource curse hypothesis in low and high growth countries. Digital governance has a positive and significant impact at middle and higher quantiles. The joint influence of natural resources rent, and digital governance is associated with lower economic growth. It imply that digital governance doest not decreases the negative effect of natural resources rent on economic growth. Energy consumption contributes to higher economic growth from lower to higher quantiles. The interaction of digital governance and energy consumption has significant and positive impact on higher quantiles, suggesting that digital governance enhances energy consumption efficiency. These findings suggest valuable policy suggestions.