WITHDRAWN: Monetary policy channels, sectoral outputs and sustainable growth in ECOWAS region: A rigorous analysis and implications for policy

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.

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.

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

The study examines the effect of sustainable economic growth on “FDI inflow” using comparative panel econometrics on two panels: “low-income” and “middle-income” economies between 1970 and 2021. For this, 18 “low-income” and 53 “middle-income” economies constitute the sample. The data were retrieved from the “world development indicator” website. Pre-diagnostic and post-diagnostic estimations were performed using static panel and dynamic panel approaches. Sustainable growth increases “FDI inflow” in “low-income” and “middle-income” economies during the study period, according to the findings. In addition, trade openness and the exchange rate have the potential to boost “FDI inflow” in “low-income” economies. Similarly, in “middle-income” economies, the real growth rate and exchange rate are significant boosts, however inflation significantly reduces the “FDI inflow”. The findings show that policymakers in “low-income” and “middle-income” economies should maintain long-term, sustainable economic growth in order to attract more “FDI inflow” in their respective economies. Compared to the current state of knowledge in the subject, the study’s findings provide evidence for “low-income” and “middle-income” nations that have been mainly overlooked in terms of sustainable growth for attracting FDI inflow. The study’s outcomes are applicable and generalizable only for “middle-income” and “low-income” economies. Future researchers may include additional control factors and expand the scope of the study to include “high-income” groups.

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.

Recognizes that global growth should decelerate sharply, to 1.7 per cent in 2023—the third weakest pace of growth in three decades—or 1.3 percentage points below previous forecasts, reflecting synchronous policy tightening aimed at containing very high inflation, worsening financial conditions, and continued disruptions from the Russian Federation’s invasion of Ukraine. The United States, the euro area, and China all continue to undergo a period of pronounced weakness, and the resulting spillovers exacerbate other headwinds faced by emerging market and developing economies (EMDEs). The combination of slow growth, tightening financial conditions, and heavy indebtedness will likely weaken investment and trigger corporate defaults. Further negative shocks could push the global economy into recession. In the near term, urgent global efforts remain necessary to mitigate the risks of global recession and debt distress in EMDEs. National policy makers should ensure any fiscal support focuses on vulnerable groups, inflation expectations remain well anchored, and financial systems remain resilient.

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.

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.

The article addresses the issues of ensuring the exchange rate stability of GEL - the national currency of our country and effective management and regulation of public debt as well as attaches weight to the mechanisms for overcoming the challenges of economic development in the country and to the selection and use of flexible tools. The article highlights the efforts of the leaders of the government and the National Bank of the country in developing and implementing the optimal macroeconomic policies, as well as in maintaining monetary policy stability and achieving sustainable economic development. Furthermore, considerable attention is given to the GEL exchange rate not only against to major currencies - the USD or the euro - but also to the currencies of the other partner countries of Georgia. The article analyzes the dynamics of changes in the GEL exchange rate against the currencies of partner countries, based on the statistical data of the National Bank of Georgia. Factors influencing both effective nominal and real exchange rates as well as government domestic and external debt are also assessed at different time intervals. Thus, the purpose of this article is to identify the issues related to the management and regulation of public debt based on the analysis of the dynamics and structure of public debt of Georgia, as well as to study the factors that have a positive and negative effect on them. This article aims to identify the issues related to the management and regulation of public debt obligations, on the basis of public debt sustainability analysis. The article, on the basis of statistical data, analyzes the dynamics and structure of public debt in 2010-2020. The problematic issues in the financial and monetary system are also identified and their determinants are investigated. Recommendations have been developed to reduce the debt burden and overcome the negative consequences caused by them. Based on the analysis of the economic situation in Georgia and the dynamics of the exchange rate, the recommendations for stabilizing the exchange rate of the financial sector, effective management of public debt and achieving sustainable economic growth have been developed in this article. Subject and object of research. The subject of the article's research is to identify problems related to the fluctuation of the Georgian national currency exchange rate and public debt regulation. While the object of the article is monetary policy that have been developed and implemented by the National Bank of Georgia and the Ministry of Finance of Georgia. Research methods. Relevant scientific literature as well as statistical data from the National Bank of Georgia, the Ministry of Finance and the National Statistics Office of Georgia were found at the initial stage of the research. In addition, the studies and articles by Georgian and foreign scholars on public debt issues and the materials of the International Monetary Fund were used. The scientific value of the article. The article analyzes the dynamics and structure of the GEL exchange rate and public debt in 2010-2020 based on the statistical data of Geostat and the Ministry of Finance of Georgia. Problematic issues in the field of finance and monetary-credit have been identified and their causes have been investigated. The recommendations have been developed to alleviate the debt burden of Georgia and overcome the negative consequences caused by them. Based on the analysis of the economic situation in Georgia and the dynamics of the GEL exchange rate, the article develops recommendations for improving the financial sector, stabilizing the exchange rate and ensuring effective public debt management and sustainable economic growth. It should also be noted that, the article addresses and assesses the approaches of the leaders of Government of Georgia and the National Bank to ensuring the formation and improvement of a stable macroeconomic environment. The role of monetary policy in ensuring the sustainable development of the economy is revealed. In addition, the mistakes in exchange rate regulation and public debt management are also identified and assessed. The article substantiates the crucial role of ensuring the stability of the GEL exchange rate in achieving economic growth. Besides, reviewing the GEL exchange rate is important not only against the USD, but also against the currencies of other trading partner countries. Accordingly, the paper, based on the statistical data, also analyzes the dynamics of changes in the GEL exchange rate against the currencies of partner countries. The article also analyzes the key factors affecting both effective nominal and real exchange rates, as well as domestic and external debt at different time intervals.

Price stability and sustainable economic growth are conventionally considered as key goals of monetary policy. Financial stability is also recognized as the third pillar in the monetary policy objective function after the financial crisis of 2007. Although financial stability “as the third target in the monetary policy objective functions” is evidently inconsistent with the twin conventional monetary policy goals, it mitigates the side effects of financial turmoil impact on the price and growth instability in the macrocosmic environment in the medium term. Financial crises, which have historically created large deviations in the monetary policy goals, necessitate empowering the conventional policy instruments (policy interest rate, monetary aggregate and rate of requirement ratio) with unconventional policy instruments. In this context, unconventional supplementary monetary policy instruments streamline monetary transmission mechanism to achieve asymmetrically triple monetary policy goals through expanding open market operations to non-governmental bonds, facilitating banks’ overnight financing in the payment system, and initiating zero bound interest rate policy. In this research, a Dynamic Stochastic General Equilibrium Model (DSGE-Gertler and Karadi, 2011) is technically utilized to estimate the impact of conventional (interest rate) and unconventional (credit lines) monetary policy instruments on the macroeconomic variables (inflation, output growth, exchange rate and stock market price index), while simulating the macroeconomic variables response to financial instability. The simulation evaluates monetary policy impulse response function based on optimization approach in the context of crisis scenario. Monetary policy rules basically assessed in this paper are introduced in the context of optimization and non-optimization, which include Taylor interest rate rule without financial stability, simple optimization interest rate rule with financial stability, and unconventional monetary policy rule. In this context, Central banks’ line of credits as unconventional tool, which is influenced by the policy maker decisions, injects directly to banking network flow of funds. Central banks, which had sold the public bonds to the families in the form of risk-free investment in the first step, accumulate financial resources in the balance sheet. Accumulated financial resources lend simultaneously to the firms in the second step in the context of unconventional expansionary monetary policy in order to increase banking network leverage ratio, which streamlines credit operations and develops private sector investment. Presumably, central bank intervention is empirically considered inefficient compared to the private sector in the financial intermediaries due to CBs cost inefficiency to find and allocate to the key economic sectors. The DSGE parameters are statistically estimated by the Bayesian approach through using time series for some macroeconomic variables including consumption, private investment, inflation, government expenditure, change in outstanding loan, commercial banks leverage ratio, and stock market return. Given the fact that the Bayesian estimation is technically required to introduce the distribution of parameters as priors, priors are determined through numerical analysis as well as through previous research. The estimation log data density mounted at about 399 and the robustness of estimated parameters has been verified based on test of Brooks and Gelman (1988). In this study, rapid reduction in the quality of capital is considered financial crises shock indicator which influence key macroeconomic variables. Simulation results indicate that unconventional monetary policy affects efficiently real sector sustainability while mitigating financial instability (assets market) in the macroeconomic environment. In this regard, financial stability is evidently accompanied by the lower nominal interest rate and inflation in line with Gertler and Karadi (2011). In other words, although unconventional rather than conventional monetary policy instruments were limitedly utilized amid financial turmoil in Iranian economy, they create sustainable growth along with lower interest rate and inflation in the medium term accompanied by higher household welfare. Utilization of unconventional monetary policy instruments diversifies policy tools and reduces the deviation of conventional policy instruments and target variables (price, output growth and financial stability) in the Iran macroeconomic environment.

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.

This paper examined the nexus of macroeconomic policy (monetary and fiscal policies), investment and economic growth. The findings established that monetary and fiscal policies affect aggregate investment and economic growth in Nigeria. It also showed that the management of monetary and fiscal policies in Nigeria has not yet achieved macroeconomic stability objective. The implementation of the monetary policy, in particular, has not helped to stimulate savings and ensure it's efficient allocation for investment purposes, hence appropriate rate of investment and sustained economic growth has eluded the country. For a sustainable macroeconomic policy that will engender appropriate rate of investment and sustained economic growth, this paper therefore, recommends harmonious working relationship between monetary and fiscal authorities, effective coordination and harmonization of monetary and fiscal policies, monetary policies should focus on lowering interest rates and increasing availability of credits to productive sectors of the economy. Furthermore, the monetary authorities should strongly discourage exploitative tendencies and unethical practices of banks, banks should avoid sharp and unscrupulous practices and discipline themselves to play according to the rules of the game as well as effectively carry out their financial intermediation role.

Energy diversification is very important to the sustainable economy growth. In this paper we develop an endogenous growth model and analyze some major relationship between the energy diversification and sustainable economy growth. The dynamic optimization results of the model show that the technology progress will make great contributions to the energy diversification and the specialized energy R&D plays an important role in the energy diversification process, which can accelerates energy supply source expansion. Propelled by the specialized energy R&D, energy diversification will redistribute the labor force among different sectors, offset the adverse effects of diminishing marginal return of factors, and help economy step into sustainable growth e entually.

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.