Institutional Thresholds and Green Growth: An Examination of the Resource Curse in Pakistan, India, and China

Abstract

This research investigates the intricate relationships among political institutions, the phenomenon known as the resource curse, and the pursuit of green growth within the contexts of China, India, and Pakistan. Utilising a mixed-methods approach that integrates quantitative analysis with qualitative case studies, this study examines the role of institutional quality as a mediator in the relationship between natural resource abundance and sustainable development outcomes. The results indicate the presence of non-linear relationships between governance indicators and green growth, with notable threshold effects identified in each of the three countries examined. Centralised authority in China has enabled swift execution of green policies, though regional disparities and inefficiencies persist. India’s federal structure facilitates policy experimentation but faces challenges in uniform implementation. Pakistan, with weaker institutional frameworks, demonstrates the most significant manifestations of the resource curse, underscoring the need for governance reforms. The study identifies institutional thresholds that, once surpassed, significantly enhance green energy adoption and environmental performance, offering strategic insights for policymakers on how context-specific institutional reforms can unlock green growth potential even in resource-dependent economies.