Mineral resource extraction and environmental sustainability for green recovery

This research paper investigates the complex network of relationships influencing green economic growth in 22 developing nations. Utilizing data spanning from 2000 to 2022 and employing the SYSTEM-GMM approach, our analysis reveals significant insights into the dynamic interactions among mineral extraction, inward Foreign Direct Investment (FDI), the Consumer Price Index (CPI), economic uncertainty, good governance, and green growth. The findings strongly indicate the adverse impact of mineral extraction on green growth, with a mere 1% increase leading to a notable 0.22% reduction in the green growth index. Additionally, the study underscores the pressing need for a reassessment of FDI policies, as inward FDI often contributes to environmental pollution in the absence of regulatory incentives. It emphasizes the hindering role of the Consumer Price Index (CPI) in green growth and, conversely, highlights the positive influence of good governance. The research underscores the destabilizing effect of economic uncertainty on sustainability and emphasizes the significance of economic stability. To promote environmentally friendly economic recovery, we propose policies aimed at reshaping the mineral extraction industry, fostering economic resilience, controlling inflation rates, improving green governance, and nurturing green innovation.