Natural resources, digital financial inclusion, and good governance nexus with sustainable development: Fuzzy optimization to econometric modeling

This study aims to investigate the complex interplay between natural resources, digital financial inclusion, good governance, and sustainable development outcomes, employing a hybrid methodological approach which combines fuzzy-set qualitative comparative analysis (fsQCA), necessary condition analysis (NCA), and econometric modeling. Drawing on data from 18 countries spanning 2013-2019, the study unravels the impact of these factors on sustainable development (SD) and explores the moderating role of governance. The findings reveal positive effects of digital financial inclusion, natural resources, and good governance on SD, with governance quality enhancing the relationship between digital financial inclusion and development outcomes. However, governance does not significantly moderate the link between natural resources and sustainability, which illustrates the need for tailored governance approaches in resource-dependent contexts. Theoretical implications highlight the relevance of institutional theory in understanding the dynamic nature of development processes, while practical implications offer actionable insights to foster holistic and resilient pathways to sustainable development. Thus, the study contributes to advancing our understanding of the intricate relationships shaping SD outcomes and informs evidence-based policy interventions in this critical domain.