Influence of Industrialization on Sustainable Development: Evidence from Asian and European Developing Countries
DOI:
https://doi.org/10.31674/ijrtbt.2024.v08i04.001Abstract
The purpose of this study is to examine the impact of industrialisation on sustainable development in developing Asian and European nations between 1990 and 2022. To accomplish this, the study employed a panel dataset and a variety of econometric models, including panel unit root, cointegration, and an autoregressive distributed lag (ARDL) model, to estimate the short-run and long-run dynamics between the variables. Moreover, the dynamic least squares (DOLS) model is used for confirming the robustness of the study’s findings. The cointegration result verifies that there is one-way cointegration between the concerned variables. The Panel ARDL's findings reveal that industrialisation has a long-run positive influence on sustainable development (as expressed by SDI) in developing nations in both Asia and Europe. However, compared to developing nations in Europe, industrialisation has a greater influence on sustainable development in Asian developing nations. However, industrialisation has a short-term detrimental impact on sustainable development in developing nations in both Asia and Europe. Therefore, the present study's statistical findings support the incidence of the Environmental Kuznets Curve (EKC) hypothesis in developing Asian and European nations, highlighting the idea that industrialisation initially undermines sustainability (especially environmental sustainability) but eventually promotes sustainable development. These results offer compelling evidence that, on the long-term horizon, one of the major driving forces ensuring sustainable development in developing Asian and European countries is industrialisation.
Keywords:
Industrialization, Sustainable Development, Asian and European Developing Countries, Panel ARDLDownloads
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