Role of financial markets and natural resource utilization in green economic recovery: Evidence from selected developing economies

Abstract

Green recovery, as a key economic recuperation procedure, is viewed as an ultra-fine choice for economies as it seems to be the only passage through which nations can rebuild their economies. The study, thus, assesses the role of financial markets and natural resource utilization in green economic recovery in 20 developing nations, with full years of information from 1995 to 2020. The major findings confirm that natural resource utilization accelerates green economic recovery. Also, the uni-directional linkage of natural resource utilization and green economic recovery is confirmed, hence, enhancing the significance of resource utilization. The predicted findings also show that the financial markets and price fluctuations of land and resources are more sensitive than manufacturing capacity. The consistent waveform demonstrates the unidirectional cause-and-effect relationship between worldwide financial strategy's volatility, supply prices, and manufacturing output. Based on the findings, the study recommends that key natural resources policies are helpful to cover green economic recovery.