Investigating the Impact of Economic Vulnerability and the Quality of Governance on Sustainable Development

Document Type : Original Article

Authors

1 PhD Candidate in Economics, Faculty of Economics and Management, Urmia University, Urmia, Iran

2 Associate Professor of Economics, Faculty of Economics and Management, Urmia University, Urmia, Iran

10.48308/jem.2024.236682.1938

Abstract

In recent decades, achieving sustainable development goals has become a central policy objective for many countries. Consequently, numerous studies have examined the factors influencing sustainable development, with economic vulnerability emerging as a significant but previously overlooked factor. This study investigates the impact of economic vulnerability on sustainable development goals using data of 48 emerging economies over the period 2007-2021. Employing a Panel Smooth Transition Regression (PSTR) approach, the study analyzes the nonlinear effects of the variables and the moderating role of governance quality. The results indicate that economic vulnerability negatively affects sustainable development goals in emerging economies. However, improvements in governance quality can mitigate this adverse effect to some extent. The study further reveals that economic openness and human development have positive effects on sustainable development goals, while natural resource abundance, industrialization intensity, and energy intensity have negative effects. Policy recommendations include implementing measures to reduce economic vulnerability and enhance economic resilience, establishing independent funds to manage natural resource revenues and directing them towards infrastructure investments, reforming production structures and implementing standards to reduce energy intensity, lowering trade barriers, and promoting industrialization processes that consider environmental sustainability.

Keywords

Main Subjects

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