Review of Public Administration and Management

Impact of Foreign Commerce and Technological Innovation on Economic Recovery in Natural Resource Development

David Paul^* Department of Economics, Carnegie Mellon University, Pittsburgh, United States
^*Correspondence: David Paul, Department of Economics, Carnegie Mellon University, Pittsburgh, United States, Email:

Received: 02-Feb-2023, Manuscript No. RPAM-23-19700; Editor assigned: 06-Feb-2023, Pre QC No. RPAM-23-19700 (PQ); Reviewed: 20-Feb-2023, QC No. RPAM-23-19700; Revised: 27-Feb-2023, Manuscript No. RPAM-23-19700 (R); Published: 06-Mar-2023, DOI: 10.35248/2315-7844.23.11.385

Description

Global economic recovery is greatly impacted by natural resource volatility. Determining the significance of natural resource volatility, international trade, technological innovation, urbanization, and investment in energy resources is the study's primary goal. Trends in economic growth, urbanization, and industrialization increase the need for the exploitation and use of domestic resources, which has an impact on the sustainability of the environment. Human activities like mining and deforestation are the main causes of natural habitat deterioration and water, soil, and air pollution. Increased demand in manufacturing and other industries has led to an increase in the exploitation of natural resources as a result of economic growth. Natural resource availability and energy security are crucial for national sustainable development. Due to a persistent ecological deficit, decreasing biodiversity, diminishing natural resources, the exhaustion of ecological reserves, and environmental deterioration brought on by a shortage of resources. Natural resource availability is equated with total natural resource rentals. Situations involving varied rent amounts are frequently ignored in existing literature. Legislators must therefore determine whether natural resource rents impede or advance economic progress. However, natural resources play a bigger and more important part in the prosperity of growing economies.

Developing country focusing on stable economic growth. The study of the economy is essential because this country was the first to be affected by the pandemic. The current study is also among the first to evaluate the cyclicality of economic performance, commodity prices for natural resources, and novel policy insights. The importance of green financial and energy resource investments for financial performance. The current study would therefore pique the interest of academics and governors interested in assessing these characteristics for potential policy implications. Several issues, including resource depletion, pollution, and global warming, are included under the link between economic growth and environmental deterioration.

The greatest and most urgent threat to people's health and the global economy today is climate change. Therefore, environmental degradation and natural resources have received increased attention recently from academics, thinkers, and politicians. It is clear that raising human capital slows down environmental deterioration, but resource rent, economic growth, and urbanization all raise the Ecological Footprint (EF) level. The relationship between human capital and urbanization is another factor that benefits the environment. The relationship between human capital and urbanization is another factor that benefits the environment. The importance of urbanization, the use of renewable energy, and the availability of natural resources in establishing the EF. In conclusion, the EF of a region or a nation was negatively impacted by the rent from natural resources, urbanization, and renewable energy. The association between economic growth and EF is formed like inverted U. Natural resources, foreign direct investment, and human capital all help a region's EF to be lessened. The current study found a definite connection between EF and the availability of natural resources.

The use of coal and rising economic activity both contribute to environmental damage. Therefore, it is extremely important for businesses involved in renewable energy to manage information and technology-intensive assets effectively. The conflicting results are brought on by the diminished impact of financial factors on GDP growth. Furthermore, there is still scarcity in on-going research regarding the mechanisms through which changes in financial development lead to changes in agent behaviour and other economic factors that support growth. The selection of variables, particularly the potential removal of a third important factor that affects economic growth and financial development, has an impact on the direction of causality. Additionally, research methods used to examine the relationship between financial development and economic growth vary by nation and across time. The current study looked at whether there is a more complex relationship between financial intermediaries and GDP growth than a typical bivariate model, which varies greatly by nation.

A three-variable model with several links between the financial sector, the oil sector, and the non-oil sector was used to examine the impact of the oil industry on the economy. The connection between macroeconomic variables like economic performance, energy resource investment, global trade, and technical innovation and the volatility of natural resources. Although natural resources could have a negative impact on economic development, the effect can be lessened by the inability to forge fruitful connections and the low level of network building with local firms.

The conclusions include a number of potential political effects. Strong institutions that uphold the rule of law, good governance, and property rights to avoid corruption are necessary for effective rent collection from natural resources. Establishing monitoring tools will help to reduce trade imbalances and increase the impact of international trade on economic growth.

Through the growth of human capital, R&D, improved institutional quality, and financial expansion, absorptive capacity can be increased. Nations' stock markets ought to be developed since they are a more useful tool for advancing financial and economic development. These techniques enable countries to profit from the technological advances of international trade and trade openness. Through encouraging economic expansion, the measures may also aid in advancing human development.