The path to sustainability: exploring the dynamic influences of ESG factors and economic growth in the GCC region

Mohsen Ayyash

International Journal of Sustainable Economy, 2026, vol. 18, issue 3, 248-271

Abstract: Sustainable development requires a balanced approach integrating environmental, social, and governance (ESG) factors with economic growth (GDPG). This study investigates the impact of ESG indicators and economic growth on the sustainable development goals index (SDGI) in Gulf Cooperation Council (GCC) countries. Given the region's economic dependence on fossil fuels and rapid development, understanding these dynamics is crucial for informed policymaking. Using panel data from the GCC countries between 2002 and 2022, the study employs the pooled mean group autoregressive distributed lag (PMG-ARDL) model to examine short- and long-run relationships. Key findings indicate the positive effects of social factors (SOCF), governance factors (GOVF), and GDPG on SDGI, whereas environmental factors (ENVF) exert a negative influence. These findings highlight the need for policies that mitigate environmental trade-offs while leveraging economic and social development and governance improvements to enhance sustainable development in the region.

Keywords: sustainability; environmental, social, and governance factors; ESG factors; economic growth; gulf cooperation council region; GCC region. (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:ids:ijsuse:v:18:y:2026:i:3:p:248-271

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