Institutional Quality, Productivity, and Resource Effectiveness: Evidence From Türkiye's Sustainable Development Path

ABSTRACT This study examines the determinants of natural resource use effectiveness in Türkiye within the framework of the United Nations Sustainable Development Goals (SDGs). Unlike conventional indicators such as total resource rents, the research employs a novel measure—EFFECTIVENESS RESOURCE , defined as natural resource depletion relative to GDP—which captures the effectiveness of resource consumption per unit of economic output. Using annual data from 1991 to 2023 and advanced econometric techniques (FMOLS, DOLS, CCR, and Fourier‐based causality tests), the study investigates the impact of institutional quality and total productivity (PRODUCTIVITY FACTOR ) on natural resource effectiveness, while controlling for foreign direct investment inflows, DEMOCRACY PARTICIPATORY , and resource rents. The findings reveal that PRODUCTIVITY FACTOR has a strong and robust negative effect on EFFECTIVENESS RESOURCE , indicating that productivity growth reduces resource consumption and enhances effectiveness. In contrast, investment inflows, democratic participation, and resource rents increase resource depletion, thereby undermining efficiency and exposing Türkiye to the risks of the resource curse. Although institutional quality is theoretically significant, it does not exhibit a direct statistical effect in the Turkish case, suggesting that weak institutionalization and political volatility limit its role in resource governance. These results highlight the importance of directing productivity gains, technological innovation, and green industrial policies toward improving efficiency, while simultaneously reforming institutional frameworks, redesigning investment incentives, and managing resource rents for long‐term sustainability. By integrating institutional economics, growth theory, and the resource curse hypothesis, this study provides novel empirical insights and policy guidance for Türkiye's sustainable development trajectory and its alignment with SDGs 7, 8, 12, and 13.