Are natural resources a blessing or a curse for digital infrastructure development? The role of financial sector development

Sustainable digital infrastructure is not only a choice but essential in a world where technology is developing quickly. It allows for the continuous development of digital technology and services while addressing environmental issues, fostering economic growth, and advancing social equality. While natural resource earnings can be an essential source of finance for the development of digital infrastructure, they also carry a number of threats to digital infrastructure due to Dutch disease. The principal objective of the analysis is to explore the link between natural resource rents, financial development, and digital infrastructure by employing the 2SLS and GMM methods. The paper's major findings show that natural resource rents hinder the growth of digital infrastructure. In contrast, financial development, GDP, human capital, trade openness, research and development, foreign direct investment, urban population, and political stability are crucial factors in promoting digital infrastructure. The region-wise findings confirm that natural resource rents hurt the digital infrastructure in Asia, America, Europe, and Africa. In contrast, GDP, human capital, foreign direct investment, and urban population help boost digital infrastructure, while financial development boosts the digital infrastructure in Asia, America, and Europe.