Natural resources, tourism resources and economic growth: A new direction to natural resources perspective and investment

Abstract

Natural resource exploration is one of the key areas of discussion these days. Its role is vital in the context of its input to the country's economic expansion. Unlike past studies, this research evaluates the effects of natural resources and economic expansion in a different setting with the role of tourism and renewable resources of energy for BRICS economies from 1990 to 2020. To tackle non-normality of the data, the present study utilizes the novel panel method of moments quantile regression analysis along with the heterogeneity of slopes, cross-section dependence, Westerlund cointegration and Pesaran unit root test. This study found that tourism and foreign investment have substantially progressive effects on economic expansion across the quantiles. However, natural resources and renewable energy adversely influence economic growth across quantiles. The estimated robustness further validates the authenticity via bootstrap quantile regression. Based on the study's empirical outcomes, this study recommends policies concerning the promotion of tourism, and renewable energy use, and sustainable use of natural resources. Also, investment in developmental projects is recommended to attract foreign investment and capital flow. • Natural resources exploration in terms of foreign direct investment and tourism is analyzed. • Renewable energy resources impact is also check for economic growth. • Natural resources crowd out real sector and tourism encourages growth. • Foreign direct investment is also important for achieving higher growth.