Energy diversification and sustainable economy growth

Analysis of energy consumption structure on CO[formula omitted] emission and economic sustainable growth

This study investigates the relationship between sustainable economic growth and foreign direct investment (FDI) in Saudi Arabia from 1980 to 2023. The ARDL approach and VECM technique are employed to analyze the short-run and long-run dynamics. The short-run results show mixed effects. Sustainable economic growth has a positive impact on current and one-period lagged FDI but a negative impact on the two periods lagged. Trade openness and infrastructure negatively affect FDI in the short run. Interestingly, oil rents and real economic growth also have negative short-run impacts on FDI, but these effects become positive with a longer lag. Long-run analysis reveals a negative relationship between trade openness, infrastructure, and oil rents with FDI, suggesting a potential crowding-out effect. Trade openness has a positive long-run impact on most variables, including sustainable growth, FDI, real growth, and CO2 emissions. Oil rents also have a positive long-run impact on these variables. This study finds six bidirectional causal relationships in the short run, primarily between trade openness, infrastructure, oil rents, and FDI. Unidirectional causality runs from oil rents, trade openness, exchange rate, sustainable growth, and real growth to FDI and infrastructure. Additionally, CO2 emissions cause FDI, and trade openness causes sustainable growth. While sustainable economic growth benefits FDI in the long run, short-term policies regarding trade openness and infrastructure require reevaluation. Oil revenue and real economic growth may initially deter FDI, but this reverses in the long term. To attract sustainable FDI, policymakers should focus on long-term economic growth strategies and consider reforms in trade and infrastructure policies. A comprehensive FDI strategy that moves beyond oil dependence and leverages trade openness is crucial to long-term economic diversification.

PurposeThe market-based monetary policy framework has been favoured by Economic Community of West African States (ECOWAS) economies. Hence, this study aims to investigate the effect of monetary policy channels on the sectoral value added and sustainable economic growth in ECOWAS. Data from the World Bank and International Monetary Fund over 2013–2019 were sourced for thirteen member countries. ECOWAS is found to have very high inflation level, interest and exchange rates.Design/methodology/approachThe study adopted the Driscoll–Kraay fixed-effects ordinary least squares regression (OLS) estimator.FindingsThe findings revealed that while the effect of monetary policy channels on the agricultural sector value added is largely heterogenous and significantly in-elastic, the one on the industrial and services sectors are overwhelmingly homogeneous and negative, but insignificant for the services sector. Moreover, the effect of monetary policy channels on sustainable economic growth is also homogeneously asymmetric, with imminent stagflation, while the interactive effects of monetary policy channels are heterogeneous on sustainable economic growth and economic sectors. Therefore, an inflation targeting monetary policy stance is generally recommended with prioritised exchange rate stabilisation amid sufficient fiscal space.Originality/valueThis is amongst the first studies to investigate monetary policy channels, sectoral outputs and sustainable growth in the ECOWAS region with a rigorous analysis and found implications for policy.

Digital finance is an innovative financial model of great significance for sustainable economic growth. By constructing indicators of sustainable economic growth, we explore the impact of digital finance on sustainable economic growth using the fixed effect model, mediating effect model, threshold regression model, and dynamic spatial Dubin model. The study finds that digital finance can drive sustainable economic growth, and the robustness and endogenous treatment results strongly verify this. Digital finance promotes sustainable growth mainly through technological innovation. In addition, with technological innovation and the development of renewable energy, there is a significant nonlinear relationship between digital finance and sustainable economic growth. Finally, the spatial spillover effect results show that digital finance's impact on sustainable economic growth has a positive effect, whether it is a direct effect or an indirect effect. This article provides possible ideas for digital finance to promote sustainable economic growth.

Sustainable economic growth is a critical agenda for developing Muslim countries facing the challenges of globalization and climate change. Islamic investment instruments such as sukuk and Islamic mutual funds provide an alternative financing mechanism aligned with Sharia principles, promoting inclusive and sustainable development. This study aims to analyze the contribution of these Islamic investment instruments to sustainable economic growth in developing Muslim countries. Utilizing panel data from 20 member countries of the Organization of Islamic Cooperation (OIC) over the period 2020–2025, this study applies fixed-effect panel regression analysis. The dependent variable is a sustainable economic growth index incorporating economic, social, and environmental dimensions. Independent variables include sukuk issuance and Islamic mutual fund assets under management, with control variables covering Islamic financial literacy, inflation, and conventional interest rates. The findings reveal that both sukuk issuance and Islamic mutual funds significantly and positively impact sustainable economic growth, with sukuk having the most substantial effect. Moreover, Islamic financial literacy enhances the positive relationship between Islamic investment instruments and sustainable growth. The study underscores the necessity of strengthening regulations, transparency, and Islamic financial education to accelerate the development of Islamic capital markets that contribute to sustainable development. Policy implications include enhancing Islamic financial literacy programs, developing green investment products, and fostering multi-stakeholder collaboration to build an inclusive and sustainable Islamic investment ecosystem. These findings provide robust empirical evidence for policymakers and Islamic capital market participants to optimize the role of Islamic investment instruments as pillars of sustainable economic development in developing Muslim countries.

This study investigated the impact of the people category of the Sustainable Development Goals (SDGs) on sustainable and conventional economic growth in Asia and the Pacific region, using a sample of 52 selected countries between 2000 and 2023. Employing two distinct models, model A1 for conventional economic growth and model A2 for sustainable economic growth, we explained the relationships between five SDG indicators: employed poverty rate, stunted children, expenditure on health, expenditure of education, and % of women MNAs on economic growth. This study employed a fixed-effect model and random-effect model to investigate the impact of the people category SDGs on traditional and sustainable economic growth. The comparative analysis of each SDG in both models revealed valuable insights. SDG 1, “employed poverty rate”, has a positive impact on economic growth in both models, while SDG 2, “percentage of stunted child”, did not significantly influence economic growth in either model. Moreover, SDG 3 and SDG 4, relating to “government’s health expenditure per capita” and “government’s Education education expenditure per capita”, respectively, exhibited a positive impact on traditional and sustainable economic growth. Conversely, SDG 5, “percentage of women members of national parliament”, displayed an insignificant impact on traditional and sustainable economic growth models. In conclusion, this study suggests that policymakers should prioritize targeted interventions to alleviate employed poverty, enhance healthcare, and boost education spending. Moreover, promoting women’s representation in national parliaments should be approached with context-specific strategies to maximize its impact on economic growth.

Econometric evaluation of economic growth sustainability of various regions
 is provided. As it is stated, for the period of 1998–2012 economies of the North
 Caucasian and the Far Eastern federal districts tended to develop more sustainably,
 while economies of the Central and the Urals federal districts tended to
 develop less sustainably. Within the North Caucasian federal region, it was the
 Kabardino-Balkar Republic, that showed the most sustainable economic growth.
 Similarly, during the same period the Republic of Sakha (Yakutia) within the Far
 East federal district, the Krasnoyarsk Region within the Siberian federal district,
 the Leningrad Region within the North-West federal district and the Republic of
 Adygea within the Southern federal district were leaders in terms of sustainable
 development within their federal districts. As for the Volga federal district,
 the most sustainable economic growth was observed in the Republic of
 Bashkortostan; within the Urals federal district the most sustainable growth was
 observed in the Sverdlovsk Region and within the Central federal district —
 in Belgorod Region. The need to differentiate anti-crisis economic policy towards
 separate regions, dependant on the propensity of a regional economic system for
 sustainable economic growth, is emphasized.

Environment, energy and sustainable economic growth

Purpose The increasing use of fossil fuels and energy security concerns have led to a growing emphasis on sustainable economic growth and transitioning to a green energy system. This study aims to examine the relationship between energy diversification and economic growth in Central Asian Republics (CAR), Gulf Cooperation Council (GCC) and South Asian Association for Regional Cooperation (SAARC) from 2005 to 2022. Design/methodology/approach This study examines the relationship between energy diversification and economic growth in CAR, GCC, and SAARC from 2005 to 2022 by using nonlinear panel autoregressive distributed lag and augmented mean group estimating methodologies. Findings The findings demonstrate that with an increase in the long-term diversity of energy sources, developed nations like the GCC and developing nations like Kazakhstan, Kyrgyzstan and Uzbekistan from Central Asia and India, Bangladesh and Pakistan from South Asia experience favourable economic growth. However, energy diversification has an inverse relationship with economic growth in least-developed economies like Afghanistan, Sri Lanka, Turkmenistan and Tajikistan in the short run. Thus, energy diversification bolsters economic growth in developed and developing economies. Diversifying energy sources may yield positive long-term effects, but it is equally important to consider the short-term consequences. Research limitations/implications Diversifying energy sources may yield positive long-term effects, but it is equally important to consider the short-term consequences. Since a variety of energy sources can support environmentally friendly development, this paper presents significant policy implications, advocating for strategic investments in renewable and alternative energy sources such as biofuels to enhance sustainable development. Practical implications The findings demonstrate that with an increase in the long-term diversity of energy sources, developed nations like the GCC and developing nations like Kazakhstan, Kyrgyzstan and Uzbekistan from Central Asia and India, Bangladesh and Pakistan from South Asia experience favourable economic growth. However, energy diversification has an inverse relationship with economic growth in least-developed economies like Afghanistan, Sri Lanka, Turkmenistan and Tajikistan in the short run. Thus, energy diversification bolsters economic growth in developed and developing economies. Diversifying energy sources may yield positive long-term effects, but it is equally important to consider the short-term consequences. Since a variety of energy sources can support environmentally friendly development, this paper presents significant policy implications, advocating for strategic investments in renewable and alternative energy sources such as biofuels to enhance sustainable development. Social implications Since a variety of energy sources can support environmentally friendly development, this paper presents significant policy implications, advocating for strategic investments in renewable and alternative energy sources such as biofuels to enhance sustainable development. Originality/value This study represents the first attempt to examine the nexus between energy diversification and economic growth within the CAR, the GCC and the SAARC. It is critical to recognize that all these regions are significantly dependent on natural resources, specifically oil, gas and agricultural and textile products. These regions face challenges in diversifying their economies away from traditional sectors towards a more diversified economic base. Furthermore, these regions hold strategic importance on the global stage. The CAR and GCC are essential for global energy supplies, while SAARC comprises key geopolitical players in South Asia.

WITHDRAWN: Monetary policy channels, sectoral outputs and sustainable growth in ECOWAS region: A rigorous analysis and implications for policy

The relationship between sustainable growth and public investment, considered one of the key factors, is a topic of interest in the context of globally adopted sustainable development strategies and current budgetary constraints, especially in the case of tight budgets in developing countries, which constrain public investment more than current expenditure, for political or other reasons. Although there are endogenous growth patterns that incorporate public spending as a factor that promotes growth, the findings in the empirical literature provide contradictory results. The study is an empirical investigation into the effects of public investment on sustainable economic growth in emerging EU and Central European countries. For the period 1995–2019, the research shows that, in most of the countries included in the sample, the long-term impact of a public capital shock on GDP is estimated to be negative. The analysis of the effect of public investment on sustainable economic growth was performed by applying the VAR model and impulse response functions, the results being confirmed by estimating the accumulated multiplier to obtain the GDP response to a shock equal to a standard deviation of public capital.

<p>The coordination between tourism and other industries contributes to the tourism sustainability as well as the sustainable economic growth. This study comprehensively examines the effect of the relationship between tourism development and industrialization on sustainable economic growth based on provincial data of China. By using the coupling coordination degree model and instrumental variable regression method, we found the following: (1) Tourism-industrialization coordination exerts positive and significant effects on sustainable economic growth. Additional robustness checks show that the results are reliable. (2) Economic development, tourism development, and manufacturing innovation moderate the effect of tourism-industrialization coordination on sustainable economic growth. (3) The sustainable economic growth effect of tourism is nonlinear and affected by tourism-industrialization coordination, and industrialization is important for tourism-led sustainable growth. The findings broaden the understanding of the relationship between tourism and economic sustainability from the perspective of industrial coordination. It may contribute to building a sustainable economic development path in developing countries.<strong></strong></p>

The Indonesian government policy in encouraging sustainable economic growth to reduce unemployment, poverty and inequality is threatened to fail, because economic growth does not reach targets and is not of quality. The purpose of this research is to explain the four pillars of growth and development namely; human capital, social capital, institutional economics and entrepreneurship as the main drivers of quality and sustainable economic growth. This research method used primary data on entrepreneurship and SMEs in the provinces of Central Java and Yogyakarta. The correlational form of recursive model path analysis was used as analytical method. The research results show the very strong role of human capital as the main key in driving economic growth both directly and indirectly. The existence of human capital and social capital will further encourage new economic institutions, furthermore new economic institutions will encourage the competitiveness of productive entrepreneurship and high, quality, and sustainable regional economic growth. The policy implication is that high, quality, and fundamentally sustainable economic growth must be built on the four main pillars basis namely; human capital, social capital, institutional and entrepreneurship in order to be more successful in reducing development problems; unemployment, poverty and income inequality.

Sustainable economic growth is one of the main pillars of sustainable development, together with the environment and society. Therefore, unveiling the factors behind sustainable economic growth is vital for the design of economic, educational, and social policies. This study investigates the role of renewable energy use, gender inequality, human capital, and foreign direct investment (FDI) inflows on sustainable economic growth in the BRICS countries during the period of 2000–2021 by using novel cointegration and causality tests. The findings of the causality test point out a feedback interplay among renewable energy use, gender inequality, and indicators of sustainable economic growth and a unidirectional causality from human capital and FDI inflows to indicators of sustainable economic growth. Furthermore, the consequences of the cointegration test unveil that the use of renewable energy, human capital, and FDI inflows positively impact sustainable economic growth, while gender inequality negatively affects sustainable economic growth. In conclusion, our results highlight the significant roles of renewable energy, human capital, and FDI inflows, along with gender equality, in achieving sustainable economic growth.

This study examined the effects of determinants of tax compliance behaviour on sustainable economic growth of micro, small and medium enterprises (MSMEs) in South-South, Nigeria. The study anchored on the economic deterrence theory and cross sectional survey research design was used on a sample of MSMEs in South-South, Nigeria. The primary data was collected using a questionnaire with a five-point Likert scale and a sample size of 535 using convenience sampling. The data collected were analysed using descriptive statistics, bivariate analysis while multivariate analysis was used in the estimation of the regression model developed for the study. The findings revealed that tax penalty has positive and significant influence on sustainable economic growth among MSMEs in south-south of Nigeria; tax fairness has positive and significant influence on sustainable economic growth among MSMEs in south-south of Nigeria; perceived opportunities of tax evasion has negative and insignificant influence on sustainable economic growth among MSMEs in south-south of Nigeria; tax audit has positive and significant effect on sustainable economic growth among MSMEs in south-south of Nigeria; and tax system has positive and significant influence on sustainable economic growth among MSMEs in south-south of Nigeria. On the basis of the findings, the study concluded that tax determinants such as tax penalty, tax fairness, tax audit, tax system and opportunity for evasion affects the level of sustainable economic growth among micro, small and medium enterprises in South-South Nigeria. The study recommended amongst others that government should expand the tax administration system in Nigeria and strengthen tax collection schemes and follow up procedures on MSMEs. Also frequent tax reforms designed and implemented that would increase revenue generation through tax collection and consequently stimulating sustainable economic growth of Nigeria.