Nexus among Regulatory Framework, Economic Growth and Sustainable Development: Insights from Structural Equation Modeling Approach

Fiaz Ahmad Sulehri and Amjad Ali

MPRA Paper from University Library of Munich, Germany

Abstract: The concept of sustainable development holds immense importance for both current and future generations. This study investigates the manner in which economic growth acts as a mediator in the relationship between sustainable development and the regulatory framework. We have utilized the structural equation modeling technique to investigate the direct and indirect impacts of exogenous and endogenous variables. We executed this investigation using a sample of 24 countries that accounted for about 65% of global greenhouse gas emissions between 2000 and 2019. According to empirical results based on direct effects, the regulatory framework hinders sustainable development and economic growth. The empirical findings indicate that the regulatory framework has a noteworthy and favorable indirect influence on sustainable development, with economic growth serving as a mediating factor. Furthermore, because of the positive indirect effect, the regulatory framework's negative direct effect on sustainable development outweighs its total adverse effect. In the end, legislators should give utmost importance to creating a balanced regulatory framework that promotes economic expansion while incorporating concepts of environmental, social, and economic sustainability to ensure the well-being of present and future generations.

Keywords: Regulatory Framework; Economic Growth; Sustainable Development; Structural Equation Model (search for similar items in EconPapers)
JEL-codes: K32 O44 Q56 (search for similar items in EconPapers)
Date: 2024
New Economics Papers: this item is included in nep-ene, nep-env and nep-gro
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/121285/1/MPRA_paper_121285.pdf original version (application/pdf)

Related works:
Journal Article: Nexus among Regulatory Framework, Economic Growth and Sustainable Development: Insights from Structural Equation Modeling Approach (2024)
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:pra:mprapa:121285

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter (winter@lmu.de).