Natural resources commodity prices volatility and economic performance: Evaluating the role of green finance

COVID-19 has been one of the biggest sources of economic downfall around the globe. During this period, global economic activities are badly affected. The role of natural resources commodity prices is equally important to determine the economic performance of an economy. Therefore, this study aims to evaluate the importance of natural resources volatility, green finance, investment in energy resources, and innovation on the economic performance of the provincial data of China. This study uses novel panel data approaches, i.e., Pesaran unit root test, Westerlund cointegration approach, augmented mean group, and Dumitrescu-Hurlin causality test. The study found that natural resources are of great importance to uplift the economic performance of an economy as its effect is found positive. Moreover, the effect of green finance, investment in energy resources, and innovation is equally important for improved economic performance. This study recommends stability in natural resources prices volatility, promotion of green finances and more investment towards energy resources. The empirical outcomes from this study provide a novel path for achieving high economic performance.