Drivers of Environmental Sustainability, Economic Growth, and Inequality: A Study of Economic Complexity, FDI, and Human Development Role in BRICS+ Nations

Parveen Kumar, Rajbeer Kaur, Magdalena Radulescu (), Branimir Kalaš and Alina Hagiu
Additional contact information
Parveen Kumar: Department of Humanities and Social Sciences, National Institute of Technology, Kurukshetra 136119, India
Rajbeer Kaur: Department of Finance, New Delhi Institute of Management, New Delhi 110062, India
Magdalena Radulescu: Department of Finance, Accounting and Economics, National University of Science and Technology Politehnica Bucharest, Pitesti University Centre, Str. Targu din Vale, No. 1, 110040 Pitesti, Romania
Branimir Kalaš: Department of Economics, Faculty of Economics in Subotica, University of Novi Sad, 24000 Subotica, Serbia
Alina Hagiu: Department of Finance, Accounting and Economics, National University of Science and Technology Politehnica Bucharest, Pitesti University Centre, Str. Targu din Vale, No. 1, 110040 Pitesti, Romania

Sustainability, 2025, vol. 17, issue 9, 1-28

Abstract: This study investigates the intricate relationships among CO 2 emissions, income inequality, the Economic Complexity Index (ECI), foreign direct investment (FDI), the Human Development Index (HDI), and the economic growth across countries. Three distinct models are developed: the first examines their effects on economic growth, the second analyzes their impact on income inequality, and the third explores their influence on CO 2 emissions. Advanced econometric methods, including Fully Modified Ordinary Least Squares (FMOLS) and Dynamic Ordinary Least Squares (DOLS), are employed to ensure robust and reliable results. The findings indicate that income inequality impedes economic growth, whereas economic growth and greater economic complexity help reduce inequality. While FDI significantly boosts GDP growth, it also widens the income disparities and intensifies environmental degradation, raising questions about the sustainability and quality of foreign investments. In contrast, human development emerges as a vital driver of economic growth and a critical factor in reducing CO 2 emissions, highlighting the value of investing in education, healthcare, and living standards to achieve sustainable development. These insights underscore the necessity for carefully designed policies that harmonize economic progress, social equity, and environmental sustainability.

Keywords: economic inequality; economic growth; carbon emissions; human development; FDI; economic complexity; BRICS (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.mdpi.com/2071-1050/17/9/4180/pdf (application/pdf)
https://www.mdpi.com/2071-1050/17/9/4180/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:17:y:2025:i:9:p:4180-:d:1649764

Access Statistics for this article

Sustainability is currently edited by Ms. Alexandra Wu

More articles in Sustainability from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().