The relationship between green finance, economic factors, geopolitical risk and natural resources commodity prices: Evidence from five most natural resources holding countries

Nowadays, fluctuation in the natural resource's commodity prices has become a prominent issue around the globe and needs the focus of policymakers and new researchers. Thus, the researchers investigate the impact of green finance, economic factors (economic growth and population growth) and geopolitical risk on the natural resource's commodity prices of the five most natural resources holding countries such as China, Saudi Arabia, Canada, India, and Russia. The current article has used the secondary data extracted from the Goldman Sachs Commodity Index (GSCI), World Bank Indicators (WDI) and Economic Policy Uncertainty databases. The secondary data were gathered from these databases from 1995 to 2019. The researchers have adopted the fixed effect model (FEM) to evaluate the links between constructs and used the robust standard error of this purpose. The results revealed that green finance and economic factors (economic growth and population growth) have a positive association with natural resources commodity prices. The findings also revealed that geopolitical risk has a negative association with natural resources commodity prices in selected countries. This study guided the policymakers while making regulations regarding the factors that affect natural resources commodity prices and provided help to the upcoming researchers while examining this area in future.

Automated summary

This study investigates the impact of green finance, economic factors, and geopolitical risk on the commodity prices of five natural resource holding countries, and finds that green finance and economic factors have a positive association with commodity prices, while geopolitical risk has a negative association.