PUBLIC POLICIES AND THEIR IMPACT ON ECONOMIC DEVELOPMENT: A SYSTEMATIC REVIEW

Abstract

Purpose: The aim of this paper is to identify the impact of public policies on economic development through a systematic review method. Theoretical Framework: The paper emphasizes the role of decentralization in allowing governments to implement efficient public policies that drive economic development, referencing Kitchenham’s guidelines for systematic literature review. Design/Methodology/Approach: The study employed a Systematic Literature Review (SLR) based on 55 selected studies. Data were extracted and synthesized to answer 8 research questions related to the impact of public policies on economic sectors and development. Findings: The review identified that public policies significantly impact economic development, particularly in the industry and environment sectors. Countries like China are leading in policy application for growth. Decentralization enhances policy effectiveness by allowing local adaptation. However, gaps remain in understanding the influence of public policies in less-explored sectors, highlighting the need for further research. Research, Practical & Social Implications: The study suggests that public policies play a critical role in shaping economic development, particularly in sectors like industry and environmental policy. Future research should focus on extending these findings to other sectors. Originality/Value: This research adds to the growing body of knowledge by synthesizing existing studies and identifying key sectors and metrics for evaluating the impact of public policies on economic development.