Resources, innovation, globalization, and green growth: The BRICS financial development strategy

Abstract

Resources, innovation, globalization, and green growth are interconnected pillars that shape societies and economies. By effectively managing resources, fostering innovation, embracing globalization, and embracing green growth, countries can achieve sustainable development, economic prosperity, and a better future for future generations. In this paper, we examine the nexus of natural resources, innovation, globalization, and green growth in BRICS countries from 1990 to 2021 in light of financial development's role in promoting green growth. We use dynamic system panel data estimations and robust random effect GLS regression for long-run estimates. BRICS countries experience green growth due to natural resources, globalization, financial development, and research and development. There is a negative relationship between globalization and green growth in the BRICS countries. Policymakers need to consider the policy implications discussed in this document to ensure a greener and more sustainable future for the BRICS countries. To mitigate the negative impacts of globalization on green growth, BRICS countries should enhance their environmental regulations. Stricter standards can help control pollution, promote sustainable resource management, and encourage the adoption of clean technologies. The BRICS countries should prioritize sustainable trade practices by integrating environmental considerations into trade agreements and policies. This could include promoting eco-labeling, supporting eco-friendly supply chains, and reducing trade barriers for environmentally friendly products.

Keywords

Natural resources / Globalization / Research and development / Green growth / BRICS countries

CRediT authorship contribution statement

Desire Wade Atchike: Writing – original draft, Methodology, Formal analysis, Conceptualization. Munir Ahmad: Writing – review & editing, Software, Investigation, Formal analysis, Data curation. Qingyu Zhang: Writing – review & editing, Visualization, Validation, Resources, Project administration, Funding acquisition.

Declaration of competing interest

The authors declare that they have no known competing financial interests or personal relationships that could have appeared to influence the work reported in this paper.

Acknowledgments

This research was supported by the Key Project of National Social Science Foundation of China (21AGL014); Shenzhen Science and Technology Program (JCYJ20210324093208022); Shenzhen University Humanities and Social Sciences High-level Innovation Team Project for Leading Scholars (24LJXZ06). This achievement was also partially funded by the “Research Base on Digital Economy Innovation and Linkage with Hub Free Trade Zones”, a key research base of philosophy and Social Sciences in Ningbo, China.

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