Mineral resource abundance and digital economy development: can government digital governance make a difference?

Abstract

Existing literature generally supports a positive, linear correlation between natural resources and economic development. However, the potential relationship between mineral resource abundance and digital economy has received scant attention. This study aims to investigate this relationship by empirically examining a sample of 30 Chinese provinces from 2012 to 2021. The findings reveal an inverted U-shaped association between mineral resource abundance and digital economy, with an inflection point at 25%. Moreover, the influence of mineral resource abundance on the development of the digital economy is more pronounced under conditions characterized by elevated levels of marketization, stringent environmental regulations, and increased openness to international trade. Additionally, the presence of digital government governance weakens the inverted U-shaped relationship between mineral resource abundance and digital economy development. Spatial analysis further uncovers a positive relationship between natural resource abundance and digital economic development, particularly in the southeastern provinces of China. Moreover, natural resource abundance demonstrates a general upward trend across all provinces over time, further emphasizing its significant role in promoting digital economic development.