Impact of Financial Development and Stock Market Performance on Natural Resources: A Financial Resource-Curse Analysis

Abstract

This study focuses on exploring the effect of natural resources on the commercial and financial development of the nation though Financial Resource Curse analysis in BRICS economics. The coefficients for financial development are mostly negative or insignificant, policies should focus on improving the efficiency of financial systems to better channel funds into sustainable resource development. While, stock market performance does not directly influence natural resource outcomes. GDP growth has a positive and significant effect on natural resources. Policies should aim at harnessing economic growth to promote sustainable management of natural resources. Improved transparency, accountability and governance mechanisms can support sustainable governance. Governments should foster balanced economic policies that support growth without compromising resource sustainability, encouraging the integration of environmental regulations with economic planning. Additionally, policies should encourage investment in green technologies economic growth with environmental protection goals.

JEL Code: F36, G14, Q5, O16, F15

Keywords:

Financial development, Stock market performance, Natural resources, Financial Resource Curse, BRICS