Dynamic linkages between human capital, natural resources, and economic growth - Impact on achieving sustainable development goals

This study examines the impact of economic growth, trade dynamics, natural resources, human capital, and sustainable development from 1990 to 2022. To capture the complexity of these factors, we utilize a Novel Dynamic Semi-parametric Additive Panel model. Additionally, we employ a Dynamic panel thresholds model to explore the sensitivity of natural resources to economic development across various indices, addressing a gap in previous nonlinear technique studies. Our findings diverge from conventional financial development and economic growth theories. While increasing money may boost trade and development, it could hinder sustainable development. Interestingly, the relationship between financial market expansion, economic improvement, and natural resource use follows an inverse "U-shaped" non-linear pattern. Furthermore, the expansion of the financial sector significantly affects the interplay between human capital and natural resources. As thresholds of growth in financial markets rise, economic growth contributes more to sustainable development, mitigating its negative impact. Several implications emerge, particularly regarding minimizing energy deprivation through global economic and developmental strategies.