Managing Economic Growth for Sustainable Economic Development

Abstract

AbstractPurpose: The purpose of this work is to develop a forward-looking approach to managing economic growth for sustainable economic development. Design/methodology/approach: The authors compare the criteria for sustainable development and the contribution of economic growth to its achievement. Statistics of economic growth, its variation and potential factors in countries with the highest economic growth rate in 2020 are analyzed. The variation of economic growth rate in 2016–2020 is calculated and studied. (five-year cut) in the countries with the highest value of this indicator in 2020, and also the correlation of the obtained values with the following indicators, reflecting the assumed general factors of economic growth and sustainable development, allowing them to balance. Findings: It was revealed that the relationship of the selected factors with the growth rate differs significantly from their relationship with its variation. None of the potential factors has confirmed their ability to simultaneously reduce and accelerate the variation in economic growth. The least controversial was the innovation index, the impact of which on economic growth allows it to slow down slightly (−35.25%) and moderately increase its variation (24.85%). It is therefore the management of this factor that has the greatest prospect of harmonizing the objectives of accelerating economic growth and achieving sustainable development. Originality/value: It is justified that no factor of economic growth makes it possible to simultaneously comply with the interests of accelerating its pace and reducing its variation. Consequently, sustained positive economic growth cannot be achieved in the long term through public administration. Thus, managing economic growth for the sustainable development of the economy always involves limiting the rate of economic growth, that is, abandoning the potential for economic development in favor of protecting the environment and the interests of society.KeywordsPublic administrationEconomic growthSustainable economic developmentModern economic systemsJEL CodesC31C33C38F63Q01Q56O11O12O31O32O33O38P25P48R11R13R58