Resources extraction and geopolitical risk: A novel perspective of World's biggest economies

During the last three decades, the issue of the nexus between natural resource extraction and economic growth is still unresolved. Due to conflicting evidence regarding natural resources' role in economic development and the absence of empirical assessment concerning geopolitical risk, this study examines the nexus between these variables in the World's largest economies from 1989 to 2021. This study used panel diagnostic tests to validate the non-normal distribution, slope heterogeneity, and cross-section dependence. Three cointegration estimators validate the long-run equilibrium relationship between the study variables. Using the non-parametric approach, this study found that natural resource extraction, geopolitical risk, and financial development boost these economies' economic growth and performance throughout quantiles. In contrast, the findings validate renewable energy consumption's adverse influence on economic growth across quantiles. The bootstrap quantile regression authenticates the empirical findings as a robust panel estimator. This study suggests efficient extraction and utilization of natural resources, improved financial sector, and reduced geopolitical risk to accelerate economic performance and growth. Also, this study recommends further investment in research and development to enhance renewable production and its efficient consumption.