Effects of E-government, GDP and FDI on natural resource depletion: a system GMM-PVAR approach

Purpose: This paper analyzes the factors influencing natural resource depletion (NRD) in selected developed and developing countries. We focus on three specific variables: (a) the E-Government Development Index (EGOV), (b) gross domestic product (GDP) and (c) foreign direct investment (FDI). Design/methodology/approach: We employ the system GMM-PVAR approach to estimate the dynamic relationships between variables. Additionally, Granger’s non-causality test is used to complement the analysis. Findings: Changes in the E-Government Development Index (EGOV) do not immediately impact natural resource depletion (NRD); however, they eventually lead to a decrease after an inevitable delay. A positive shock to gross domestic product (GDP) has a significant effect on NRD, but over the long term, this impact levels off to a steady state. Conversely, foreign direct investment (FDI) does not significantly affect NRD in the short or long term. Research limitations/implications: The limitations of this research include the lack of analysis of moderating factors that could influence the long-term relationship between EGOV and NRD. Practical implications: Policymakers should prioritize the sustained development of EGOV programs focused on environmental management to achieve long-term reductions in NRD. Additionally, they should design stimulus packages and measures that promote sustainable practices and address the short-term negative impacts of GDP growth on NRD. Originality/value: This research contributes to the literature by proposing a novel framework integrating EGOV into environmental policy, demonstrating its potential to reduce NRD over time.