Natural Resource Efficiency, Financial Development, and Digital Finance: A Pathway to Sustainable Natural Resource Utilization in Thailand and China

XinJiao Xiang; Shi-Zheng Huang

doi:10.5755/j01.ee.37.2.42108

Authors

XinJiao Xiang Eurasian School of Science & Technology, Nanning Normal University, China
Shi-Zheng Huang School of Economics and Management, Nanning Normal University; Faculty of Business, City University of Macau, China

DOI:

https://doi.org/10.5755/j01.ee.37.2.42108

Keywords:

Digital Finance, Financial Development, China, Thailand, Sustainable Development Goals, Dynamic Capabilities, Sustainable Natural Resource Utilization

Abstract

Sustainable utilization of natural resources would remain a basic prerequisite for the achieving long-term economic growth while ensuring environmental preservation specifically within emerging economies such as Thailand and China. This research determines the dynamic relationship between financial development, resource efficiency, and digital finance in promotion of sustainable natural resource utilization within the manufacturing sectors of these two nations. Grounded with Resource-Based View, Knowledge-Based View Dynamic Capabilities Theory, and Ecosystem Theory, the study has developed an integrative framework for explaining how digital maturity and intelligent innovation would facilitate the transition towards circular economy practices and resource sustainability. Aligned with framework of United Nations Sustainable Development Goals specifically SDG-9 (Industry, Innovation and Infrastructure), SDG 12 (Responsible Consumption and Production), and SDG 13 (Climate Action) this research has addresses a crucial gap for existing literature by exploring combined impact of digital transformation and entrepreneurial eco-systems on sustainable resource management. With utilization of secondary data from 2000 to 2024 and employing Driscoll-Kraay Standard Error (DKSE) estimation technique, the empirical analysis of study shows that both financial development and resource efficiency strengthens sustainable resource utilization, whereas the role of digital finance remains comparatively limited. The outcomes further reveal that Knowledge Integration Capability (KIC) serves as the most impactful predictor and serves as the key mediating mechanism which links the core constructs to Circular Economy Adoption (CEA), while Digital Circular Economy Maturity (DCEM) acts as a moderator which strengthens positive relationship between KIC and CEA to enhance the overall impact of core drivers. Study also offers theoretical contributions by advancement of integrated perspective on digital and financial drivers of sustainability, while providing practical implications for policy-makers and industry-leaders who seek to enhance digital capabilities, fostering innovation and aligning national industrial strategies with global sustainability objectives.

Author Biographies

XinJiao Xiang, Eurasian School of Science & Technology, Nanning Normal University, China

XinJiao Xiang is affiliated with the Eurasian School of Science & Technology, Nanning Normal University, Nanning, China. Her academic interests focus on economics and business management, with particular emphasis on sustainable development, organizational performance, and emerging market dynamics. ORCID: 0009-0002-3276-0859.
Shi-Zheng Huang, School of Economics and Management, Nanning Normal University; Faculty of Business, City University of Macau, China

Shi-Zheng Huang is a researcher affiliated with the School of Economics and Management at Nanning Normal University, Nanning, China, and the Faculty of Business at City University of Macau, Macau, China. His research primarily focuses on the sharing economy, Sustainable Development Goals (SDGs), digital business models, and innovation management. ORCID: 0000-0001-5235-4773.