This paper analyzes the factors influencing natural resource depletion (NRD) in selected developed and developing countries. We focus on three specific variables: (a) the E-Government Development Index (EGOV), (b) gross domestic product (GDP) and (c) foreign direct investment (FDI).
We employ the system GMM-PVAR approach to estimate the dynamic relationships between variables. Additionally, Granger’s non-causality test is used to complement the analysis.
Changes in the E-Government Development Index (EGOV) do not immediately impact natural resource depletion (NRD); however, they eventually lead to a decrease after an inevitable delay. A positive shock to gross domestic product (GDP) has a significant effect on NRD, but over the long term, this impact levels off to a steady state. Conversely, foreign direct investment (FDI) does not significantly affect NRD in the short or long term.
The limitations of this research include the lack of analysis of moderating factors that could influence the long-term relationship between EGOV and NRD.
Policymakers should prioritize the sustained development of EGOV programs focused on environmental management to achieve long-term reductions in NRD. Additionally, they should design stimulus packages and measures that promote sustainable practices and address the short-term negative impacts of GDP growth on NRD.
This research contributes to the literature by proposing a novel framework integrating EGOV into environmental policy, demonstrating its potential to reduce NRD over time.
