Synergy of governance, finance, and technology for sustainable natural resource management

Abstract

The complexity of global supply chains and the interconnected nature of resource systems present significant challenges in ensuring equitable resource access and management. Good governance and an effective financial system are vital for managing natural resources sustainably. This study investigates the roles of good governance and innovative financial systems—including digital financial inclusion, green finance, and FinTech—in influencing natural resource management. Additionally, it explores how good governance moderates the effects of these variables on natural resources. Using a panel dataset of 18 nations for 2013–2019 years, we employ a hybrid methodology that integrates Fuzzy-set Qualitative Comparative Analysis (fsQCA), Necessary Condition Analysis (NCA), and econometric modeling. fsQCA is employed to uncover and examine intricate combinations of causal conditions of the researched variables that together contribute to natural resource management. Our findings reveal that while green finance positively impacts natural resources, FinTech and digital financial inclusion initially have negative effects. However, these negative impacts are reversed under the moderating influence of good governance, resulting in positive outcomes. High levels of good governance consistently interact with varying levels of green finance, FinTech, and digital financial inclusion to foster natural resource management. Furthermore, good governance plays a critical role in shaping the necessary conditions for sustainable resource utilization. The study emphasizes the importance of governance reforms to achieve sustainable resource management. By identifying essential conditions for natural resource utilization, the research provides actionable insights for targeted policy interventions and strategic initiatives.