The role of economy servitisation and governance effectiveness in the interconnections between environmental, social and economic development: a spatial approach

Mateusz Jankiewicz

Discussion Papers from Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy

Abstract: The paper aims to assess the simultaneous relationships among three dimensions of sustainable development, while accounting for modifications to the economic structure and governance quality. The study was conducted across 149 selected countries from 2012 to 2023. To ensure spatial homogeneity, countries are divided into five clusters based on their geographic location. The linkages between the sustainable development pillars are verified using a spatial vector autoregressive (spVAR) model, in which performance in each sustainability dimension is calculated using Sustainable Development Goals (SDGs) indices. Moreover, the connections between countries are defined in two ways: (1) as the nearest neighbourhood in the geographical space, (2) as the governance quality level similarity. The results show a significant relationship between sustainable development achievement for individual dimensions in almost all established clusters. The economic and environmental situations are rather negatively related, unlike economic and social sustainability and social and environmental sustainability. Additionally, except for African economies, the sustainability achievement is driven by the ongoing servitisation process. Moreover, the significance of the government quality level for sustainable development performance is concluded.

Keywords: geographical proximity; governance quality; economy servitisation; spatial VAR model; sustainable development (search for similar items in EconPapers)
JEL-codes: C51 O14 Q56 (search for similar items in EconPapers)
Date: 2026-04-01
New Economics Papers: this item is included in nep-geo
Note: ISSN 2039-1854
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Persistent link: https://EconPapers.repec.org/RePEc:pie:dsedps:2026/330

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