Efficient natural resources management through financial and innovative technologies in developing nations from the lens of economic development

Abstract

The evolution of the digital economy has emerged as a critical feature in redefining the contribution of controversial factors, such as mineral extraction, especially in the developing world. This study investigates integrating innovative financial technologies with natural resource extraction in developing Asian economies. The objective is to assess the impact of financial integration (both financial innovation and innovative technology) on improving the efficiency of natural resource utilization. For this purpose, this study employs CS-ARDL regression analysis to examine the long-run correlation between the variables from 1990 to 2021. It establishes a positive and enduring correlation between financial innovation and natural resource conservation. Moreover, innovative technologies favorably influence resource consumption as they improve the efficiency and transparency of financial processes. Thus, the results show that financial innovation and innovative technologies have emerged as potent instruments, facilitating access to financial services, improving efficient resource management, and helping conserve resources.Therefore, this study determined that advancing finance integration with technological innovation has emerged as a crucial element in achieving sustainable resource consumption, balance between economic growth, environmental preservation, and social equity in developing economies.