Examining the effects of intangible resources on green economic growth: Does institutional quality matter?

Green economic growth advocates for a balanced advancement of economic development and environmental sustainability, recognizing the limitations imposed by resource availability and ecological capacity. In many resource-rich developing nations, environmental degradation and inefficient resource use have led to suboptimal green growth outcomes. Amid this challenge, the role of intangible assets, particularly national intellectual capital, in driving green growth remains underexplored. This study examines the moderating effect of institutional quality on the link between national intellectual capital and green economic growth across 19 Asia-Pacific economies from 2000 to 2023. Utilizing dynamic panel estimation techniques, including Dynamic Ordinary Least Squares (DOLS), Fully Modified Ordinary Least Squares (FMOLS), and the Dumitrescu and Hurlin (2012) panel causality method, which account for both cross-sectional dependence and slope heterogeneity, we provide robust empirical insights. Our results reveal that while national intellectual capital and institutional quality individually promote green economic growth, their combined interaction may yield diminishing returns. These findings underscore the importance of aligning institutional frameworks with innovation ecosystems. Accordingly, policy initiatives aimed at sustainable development in the Asia-Pacific region should prioritize strategic knowledge management and support technological progress in the context of the Fourth Industrial Revolution.