Abstract
Worldwide economies are determined to achieve sustainable development. In this pursuit, the role of SMEs and ICT has emerged as an inevitable choice for sustainable development. The literature on the impact of SMEs and ICT on sustainable development, particularly in China's context, is scarce. Therefore, the analysis aims to investigate the impact of SMEs and ICT on sustainable development in China for the period of 1998–2020. We have applied the ARDL model for empirical analysis. The short and long-run estimates attached to SMEs are significant and positive, confirming that SMEs help to achieve sustainable development. Similarly, the estimates attached to ICT are positive and significant both in the short and long run, confirming the beneficial role of ICT in achieving sustainable development. The estimates attached to institutional quality and R&D control variables are positive and significant in the long run, but only R&D estimates are significant in the short run. In particular, digitalization and SMEs development provide a win–win situation for China to mitigate climate change in the long run and become more environmentally sustainable.
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