The key role of digital governance, natural resource depletion, and industrialization in social well-being: A case study of China

• Published in: Resources policy 2024-06, Vol.93, p.104969, Article 104969
• Main Authors: Zhou, Yasong, Li, Yuqing, Chen, Chen
• Format: Article
• Language: English
• Subjects: ARDL bound test approach; China region; Digital governance; Human development index; Natural resources
• ISSN: 0301-4207; 1873-7641
• DOI: 10.1016/j.resourpol.2024.104969

Every country in the twenty-first century places the highest focus on the health and happiness of its citizens. In contrast, natural resource depletion may harm people's health, making it more challenging to achieve human well-being. The digital revolution has had an effect on society on a variety of levels, most notably on the levels of social welfare, economics, and governance. As a result, the current research looked at the effects of digital governance (DIG) from an empirical perspective of natural resource (NR) and industrial development (IND) on the human development index (HDI) using China's data sets spanning the years 1990–2021. After doing unit root tests, such as ADF and P–P, the Divot unit root test, ARDL bound co-integration and Johansen co-integration test, whereas the dynamic relationship of prescribed variables with long- and short-run analysis was checked this time around, the ARDL model was used. In addition, a rigorous evaluation of the ARDL test was conducted using co-integrating regression analysis using fully modified FMOLS, DOLS, and CCR. In China, the empirical results showed that digital governance, industrial growth, and human capital all contribute positively to HDI, whereas increasing gasoline use and natural resource extraction hurt HDI by diminishing social welfare. The research also used the Granger causality technique. Similarly, to investigate, the model of regression based on Markov switching for was used because correlations existed between the several variables. According to the Granger causality test, there is bidirectional causation between digital governance and fuel use. However, one-way causation connects human development indices, digital governance, and natural resources to gasoline use. The results obtained in our research using the ARDL technique are supported by results from the evaluation of the Granger causality that was obtained. Policymakers in the region around China and other emerging nations may learn a lot from the findings of this empirical study. [Display omitted] •Heterogeneous estimators are being used to investigate the study's objectives.•GSC and natural resources decline the human development level.•Human capital, IND and DIG significantly enhance the level of HDI.•Policies are suggested to improve the human development level.