Do Emerging Market Economies Have Sustainable Development?: A Panel Vector Autoregression Analysis
Social Sector Spending, Governance and Economic Development: Perspectives from across the World, Taylor & Francis Ltd, ss.140-157, 2023
- Yayın Türü: Kitapta Bölüm / Araştırma Kitabı
- Basım Tarihi: 2023
- Doi Numarası: 10.4324/9781003245797-10
- Yayınevi: Taylor & Francis Ltd
- Sayfa Sayıları: ss.140-157
- Kırklareli Üniversitesi Adresli: Evet
Özet
The negative impact of economic growth in most and least developed nations is less ambiguous compared to emerging market economies. Since the emerging nature of market economies might be understood to stem from sustainability, the same has been empirically tested in this chapter to understand the developmental choices in this particular country group. The prevalence of sustainable development in emerging market economies has been analyzed in this chapter over the period of 1996–2017 using panel vector autoregression analysis. The study brings forth a theoretical perspective that a country or a country group has sustainable development if it meets three hypotheses simultaneously. First, development should be self-reinforcing, that is, that past levels of development should be a positive significant determinant of the current level of development due to the strategic complementarity. Second, lower income inequality, better governance quality and higher environmental quality should increase the level of development. Third, an increase in the level of development should reduce income inequality and improve governance and environmental quality. Results show that although Hypothesis 1 is valid for emerging market economies, Hypotheses 2 and 3 are not valid. Based on this, it is concluded that development is not sustainable for emerging market economies. As policy implications, it is recommended that emerging market economies re-establish their governance structures since their inefficiencies lead to unsustainable development and build renewable energy sources since the improvement in CO2 emissions from fossil fuels does not contribute to development.