Plenty of natural resources, institutional quality, and sustainable total factors of production: the moderating role of green Islamic finance

Purpose The study aims to address the mechanism of the resource curse and achieve Sustainable Development Goals (SDGs) by exploring the connections between the abundance of natural resources (ANR), institutional quality (IQ) and green total factors of productivity (GTFOP) in the context of Islamic economies. Design/methodology/approach The study uses ordinary least squares, feasible generalized least squares and IV-GMM econometric models to uncover the proposed connectedness among 9 Islamic economies from 2017 to 2023. Moreover, the study examines the asymmetric linkages and moderating influence of green Islamic finance (GIF). Findings The study finds (a) ANR hinders the growth of GTFOP and verifies the resource curse hypothesis; (b) ANR has more depressive impacts on GTFOP in regions with higher GTFOP; (c) strong IQ enhances the systems of resource management with proper extraction and consumption of natural resources, hence IQ promotes GTFOP, especially in upper quantiles; (d) the replaced variables support the findings of benchmark regression; and (e) green Islamic finance reduces the inhibitory impacts of ANR on GTFOP while enhancing the favourable effects of IQ on GTFOP. Originality/value Finally, the study outcomes provide favourable suggestions for governments and policymakers.