Artificial Intelligence Innovation and Natural Resource Management: An ARDL Analysis of Economic Growth in Pakistan

Abstract

This study examines the impact of artificial intelligence (AI) innovation and natural resource management on Pakistan's economic growth from 1990 to 2024. The time-series econometric technique, the autoregressive distributed lag (ARDL) model, was used to analyze short- and long-term relationships among economic growth, AI innovation (proxies by patent applications), total natural resource rents, and inflation. The results show that AI innovation and natural resource rents significantly contribute to economic growth, while inflation negatively affects it. These findings highlight the importance of promoting AI-driven technological advancements and sustainable resources used to achieve long-term financial resilience. Based on the results, this study recommends policies to reward AI innovation and adopt sustainable natural resource management practices, ensuring a balanced and robust pathway for economic development.