Do market-supporting institutions promote sustainable development? Evidence from developing economies
|
Accepted Version
(PDF 371kB)
122625594. Available under License Creative Commons Attribution Non-commercial No Derivatives 2.5. |
Description
An institutional structure may affect traditional drivers of development, such as foreign direct investment and economic growth, and emerging economies’ ability to achieve sustainable development. This study expands on this literature by assessing the role of market-supporting institutions in achieving sustainable development goals in 42 developing economies. Using various measures of market-supporting institutions and a dynamic panel data approach, we find that all institutions play an important role in achieving sustainable development. Furthermore, we show that foreign direct investment and economic growth have a positive indirect effect on sustainable development by promoting the quality of market-supporting institutions and adopting renewable power generation. Our results suggest that policymakers in developing countries should focus on the robustness of their market-supporting institutions to achieve sustainable development.
Impact and interest:
Citation counts are sourced monthly from Scopus and Web of Science® citation databases.
These databases contain citations from different subsets of available publications and different time periods and thus the citation count from each is usually different. Some works are not in either database and no count is displayed. Scopus includes citations from articles published in 1996 onwards, and Web of Science® generally from 1980 onwards.
Citations counts from the Google Scholar™ indexing service can be viewed at the linked Google Scholar™ search.
Full-text downloads:
Full-text downloads displays the total number of times this work’s files (e.g., a PDF) have been downloaded from QUT ePrints as well as the number of downloads in the previous 365 days. The count includes downloads for all files if a work has more than one.
| ID Code: | 237403 | ||
|---|---|---|---|
| Item Type: | Contribution to Journal (Journal Article) | ||
| Refereed: | Yes | ||
| ORCID iD: |
|
||
| Measurements or Duration: | 11 pages | ||
| Keywords: | Market institutions, Renewable energy generation, Sustainable development | ||
| DOI: | 10.1016/j.econmod.2022.106023 | ||
| ISSN: | 0264-9993 | ||
| Pure ID: | 122625594 | ||
| Divisions: | Current > QUT Faculties and Divisions > Faculty of Business & Law Current > Schools > School of Economics & Finance |
||
| Funding Information: | For our panel of 42 developing countries from 1990 to 2018, we show that all types of market-supporting institutions are directly linked to sustainable development. Furthermore, we discover that foreign direct investment (FDI) and economic growth have a positive indirect effect on sustainable development by promoting market-supporting institutions and renewable power generation. Our results suggest that policymakers in developing countries should focus on the robustness of their market-supporting institutions to achieve sustainable development.To check the robustness of our empirical results, we conduct additional analysis by replacing the dynamic SYS-GMM method with the static cross-sectional time-series FGLS regression method, which does not allow for the inclusion of a lagged dependent variable among the set of predictors. Tables 8–10 show the estimation results. The signs and significance of the coefficients of the market-supporting institution variables are consistent with the SYS-GMM results. Furthermore, the coefficient of the interaction terms of FDI and GDP with all market-supporting institutions remains positive. RPG is positively associated with sustainable development in most specifications. To summarize, our findings indicate that our GMM results are largely robust with this alternative estimation method. | ||
| Copyright Owner: | 2022 Elsevier B.V. | ||
| Copyright Statement: | This work is covered by copyright. Unless the document is being made available under a Creative Commons Licence, you must assume that re-use is limited to personal use and that permission from the copyright owner must be obtained for all other uses. If the document is available under a Creative Commons License (or other specified license) then refer to the Licence for details of permitted re-use. It is a condition of access that users recognise and abide by the legal requirements associated with these rights. If you believe that this work infringes copyright please provide details by email to qut.copyright@qut.edu.au | ||
| Deposited On: | 23 Jan 2023 07:20 | ||
| Last Modified: | 28 Mar 2024 18:23 |
Export: EndNote | Dublin Core | BibTeX
Repository Staff Only: item control page
CORE (COnnecting REpositories)
CORE (COnnecting REpositories)