Fostering human development: do institutional environment quality and overall UN-SDGs attainment matter?

Akrum Helfaya, Nadeesha Muthuthantrige and Geyi Xu

Sustainability Accounting, Management and Policy Journal, 2025, vol. 17, issue 2, 615-641

Abstract: PurposeThis study aims to uniquely combines institutional environment quality (IEQ) and United Nations Sustainable Development Goals (UNSDGs) metrics within a global panel framework to explore their individual and joint impacts on human development (HD). It offers a novel contribution by empirically testing how these two institutional dimensions interact to shape HD outcomes across 154 countries from 2002 to 2021.Design/methodology/approachDrawing on neo-institutional theory, this study uses fixed-effects panel regression, principal component analysis and dynamic panel estimation using the instrumental variable-Lewbel model. Robustness checks include alternative HD measures and distinguish between impacts in developing and developed economies.FindingsResults show that both IEQ and UN-SDGs progress significantly and positively impact HD. Their joint impact is stronger than either factor alone. Key IEQ elements − such as voice and accountability, government effectiveness and control of corruption − are critical, while political stability shows a positive but statistically insignificant relationship with HD.Research limitations/implicationsThe analysis is constrained by data availability and does not address potential reverse causality.Practical implicationsPolicymakers, especially in developing countries, can improve HD by strengthening IEQ and aligning governance with UN-SDGs targets.Social implicationsEnhancing institutional governance and achieving UN-SDGs milestones can help reduce inequality, improve public trust and support long-term societal well-being.Originality/valueThis study presents new global empirical evidence on how IEQ and UN-SDGs jointly influence HD, with implications for both theory and policy.

Keywords: Institutional environment quality; Neo-institutional theory; Human development; United Nations Sustainable Development Goals (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eme:sampjp:sampj-09-2024-0960

DOI: 10.1108/SAMPJ-09-2024-0960

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