Sustainable development spillover effects among selected Asian countries: Analysis of integrated sustainability perspective

Abstract

This study aims to investigate how different pillars of sustainable development in Iran interrelate with those in Russia and Saudi Arabia from the perspective of integrated sustainability. For this investigation, it assesses the spillover effects of sustainable development in these countries by estimating their sustainability elasticities. It maps the regional spillover effects between the sustainability of Iran versus those of Russia and Saudi Arabia using SEY model by estimating the elasticities of sustainability with a combination of Simultaneous Equations System, Vector Autoregressive (VAR) model, and Granger causality technique. The results confirm the integrated sustainability perspective in terms of the interconnection of sustainable development spillover effects from Russia and Saudi Arabia to Iran. Most of the estimated coefficients are statistically significant, showing high elasticities of sustainability and considerable spillover effects which confirms the perspective of integrated sustainability with spillover effects as the 4th pillar of sustainability. However, the results reject both weak and strong sustainability perspectives. According to the findings of this study, policy-makers should follow flow-based governance instead of local-based governance. In this approach, strategists should improve the international relationship with other countries, especially Iran, Russia, and Saudi Arabia. Moreover, decision-makers should establish a peaceful and strong connection with other countries via signing international agreements, treaties, and understandings.