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Sustainability in Business Development and Economic Growth

A special issue of Sustainability (ISSN 2071-1050). This special issue belongs to the section "Economic and Business Aspects of Sustainability".

Deadline for manuscript submissions: closed (10 September 2024) | Viewed by 36968

Special Issue Editors


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Guest Editor
School of Social Sciences, University of Bradford, Bradford BD7 1DP, UK
Interests: applied econometrics; international trade and development; environmental economics
Special Issues, Collections and Topics in MDPI journals

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Guest Editor
Lincoln International Business School, University of Lincoln, Lincoln, UK
Interests: impact assessment of innovation policy; open innovation; STI and DUI innovation modes; innovation in SMEs; internationalization of innovation

Special Issue Information

Dear Colleagues,

We are pleased to invite you to contribute to this Special Issue of Sustainability, which will explore the linkages of sustainability in business development and economic growth by presenting new and innovative research.

With this Special Issue, the key issues in sustainability in business development and economic growth will be identified. Sustainability in business development and economic growth brings two important research pillars for researchers to develop new insightful and profound analyses.

Business enterprises are required to adopt new business strategies and activities for sustainable development so that the needs of the enterprise and stakeholders sustain and enhance the human and natural resources for the future.

On the other hand, sustainable economic growth refers to the pursuit of economic development that attempts to fulfil the needs of people while sustainably maintaining natural resources available for future generations.

The sustainability of business and enterprise is ultimately for the sustainable development of overall resources and the realization of the economic cycle. From this, the importance of sustainable development in terms of circular economy, optimal investment, and energy resources can be deduced.

This Special Issue of Sustainability invites researchers to present manuscripts from both perspectives of sustainability issues as well as linking research ideas.

Prof. Dr. Ferda Halicioglu
Dr. Dragana Radicic
Guest Editors

Manuscript Submission Information

Manuscripts should be submitted online at www.mdpi.com by registering and logging in to this website. Once you are registered, click here to go to the submission form. Manuscripts can be submitted until the deadline. All submissions that pass pre-check are peer-reviewed. Accepted papers will be published continuously in the journal (as soon as accepted) and will be listed together on the special issue website. Research articles, review articles as well as short communications are invited. For planned papers, a title and short abstract (about 100 words) can be sent to the Editorial Office for announcement on this website.

Submitted manuscripts should not have been published previously, nor be under consideration for publication elsewhere (except conference proceedings papers). All manuscripts are thoroughly refereed through a single-blind peer-review process. A guide for authors and other relevant information for submission of manuscripts is available on the Instructions for Authors page. Sustainability is an international peer-reviewed open access semimonthly journal published by MDPI.

Please visit the Instructions for Authors page before submitting a manuscript. The Article Processing Charge (APC) for publication in this open access journal is 2400 CHF (Swiss Francs). Submitted papers should be well formatted and use good English. Authors may use MDPI's English editing service prior to publication or during author revisions.

Keywords

  • business sustainability
  • economic sustainability
  • green finance
  • optimal investment
  • sustainability of natural resources
  • circular economy
  • sustainable
  • development
  • goals
  • energy economics
  • environmental economics

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Published Papers (13 papers)

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Research

25 pages, 1116 KiB  
Article
Network Integration as a Tool for Sustainable Business Development
by Nadezhda Shmeleva, Tatyana Tolstykh, Viktoria Krasnobaeva, Diana Boboshko and Denis Lazarenko
Sustainability 2024, 16(21), 9353; https://doi.org/10.3390/su16219353 - 28 Oct 2024
Viewed by 661
Abstract
Business enterprises are required to adopt new economic models and business strategies in line with global trends such as the green agenda, the shortening of innovation cycles, digitalization (networking platforms) and socio-economic security. The models of network integrations (clusters, industrial symbioses, innovation ecosystems, [...] Read more.
Business enterprises are required to adopt new economic models and business strategies in line with global trends such as the green agenda, the shortening of innovation cycles, digitalization (networking platforms) and socio-economic security. The models of network integrations (clusters, industrial symbioses, innovation ecosystems, etc.) are developing faster than other business models. Networking allows businesses to synergetically, based on the principles of collaboration, trust and self-organization, increase intellectual, innovative, social, and environmental values, which leads to economic growth and sustainable development. Through networking integration, the business performance of all participants in multi-company projects can be improved, regardless of their size and activities. The purpose of this study is to develop a methodological framework for assessing the synergistic effect and the level of collaborative maturity of participants in network industrial integration. This paper provides a comprehensive analysis and evaluation of network business integration efficiency. The authors’ methodology is based on the AHP hierarchy method, expert evaluation and Harrington’s level of desirability. The methodology is validated on Russian industrial integrations: industrial cluster of Nizhny Novgorod region; pipeline valve manufacturing cluster; South Ural industrial cluster producing spare parts and assembly units for roadbuilding, construction and agricultural vehicles. The results show that the level of collaborative maturity of business partners and the synergies from network integration effect the sustainability of business development. Recommendations for businesses are provided to improve their network integration and collaborative maturity. Furthermore, the findings allow the authors to define directions for further research, considering the interests of the business community, regional authorities, and financial institutions, and provide a framework for researchers to investigate the link between industrial network integration and economic growth. Full article
(This article belongs to the Special Issue Sustainability in Business Development and Economic Growth)
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26 pages, 2261 KiB  
Article
Assessing Regional Economic Performance in Romania Through Panel ARDL and Panel Quantile Regression Models
by Irina Georgescu, Ionuț Nica, Camelia Delcea, Nora Chiriță and Ștefan Ionescu
Sustainability 2024, 16(21), 9287; https://doi.org/10.3390/su16219287 - 25 Oct 2024
Viewed by 678
Abstract
This study aims to address the persistent regional economic disparities in Romania by evaluating economic performance through Panel Autoregressive Distributed Lag (pARDL) and panel quantile regression (PQR) models. The analysis focuses on the impact of key economic variables, including research and development expenditures [...] Read more.
This study aims to address the persistent regional economic disparities in Romania by evaluating economic performance through Panel Autoregressive Distributed Lag (pARDL) and panel quantile regression (PQR) models. The analysis focuses on the impact of key economic variables, including research and development expenditures (CTCRD), IT infrastructures (IT), the number of universities (FCL), and the average number of employees (NMSP), on regional gross domestic product (GDPR). Using data from the Romanian National Institute of Statistics for the period 2003–2022, this research seeks to understand how targeted investments and policy interventions can stimulate growth and reduce inequalities across regions. The findings highlight the important role of R&D, IT infrastructures, and technological advancements in driving economic growth, especially in less developed areas. The study also emphasizes the importance of region-specific strategies in fostering sustainable growth, promoting economic resilience, and bridging the gap between more and less prosperous regions. Full article
(This article belongs to the Special Issue Sustainability in Business Development and Economic Growth)
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18 pages, 1696 KiB  
Article
Simulation and Regulation of High-Quality Economic Development Based on System Dynamics and DPSIR Model
by Guomei Fu and Jiafu Tang
Sustainability 2024, 16(14), 6130; https://doi.org/10.3390/su16146130 - 18 Jul 2024
Viewed by 797
Abstract
The key to promoting high-quality economic development (HQED) is to identify the influencing factors and the complex relationships among them. Under the guidance of China’s new development concept, we systematically analyze the factors influencing the HQED based on the DPSIR (Driver-Pressure-State-Impact-Response) model. We [...] Read more.
The key to promoting high-quality economic development (HQED) is to identify the influencing factors and the complex relationships among them. Under the guidance of China’s new development concept, we systematically analyze the factors influencing the HQED based on the DPSIR (Driver-Pressure-State-Impact-Response) model. We also establish a system dynamics model and adopt Vensim PLE x64 software to simulate the impact of dynamic changes on HQED, which include innovation, coordination, green, openness, sharing systems, and their combinations. The results show that increasing green investment is the most effective, followed by enhancing regional coordination, enhancing foreign trade, and improving human capital. Among the studied factors, improving livelihood is the weakest. For multiple policy scenarios, the balanced scenario is the most efficient, followed by the environment-oriented, and the weakest is the openness-oriented scenario. Interestingly, combined policies are also more effective than single policies, which does not always apply. Furthermore, the effect of the policy combination is more obvious with the strengthening of the implementation intensity, which is important for policymakers. Full article
(This article belongs to the Special Issue Sustainability in Business Development and Economic Growth)
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23 pages, 1100 KiB  
Article
The Best of Both Worlds: How Financial Growth Can Engender Improved Sustainability for Businesses
by Ibrahim Mutambik and Abdullah Almuqrin
Sustainability 2024, 16(11), 4821; https://doi.org/10.3390/su16114821 - 5 Jun 2024
Viewed by 1843
Abstract
In recent decades, the increasingly competitive marketplace that has resulted from factors such as globalization and technological innovation has made it ever harder for businesses to deliver economic sustainability. At the same time, the pressure on businesses to achieve and maintain environmental sustainability [...] Read more.
In recent decades, the increasingly competitive marketplace that has resulted from factors such as globalization and technological innovation has made it ever harder for businesses to deliver economic sustainability. At the same time, the pressure on businesses to achieve and maintain environmental sustainability has also grown significantly. This study examines the factors that influence economic sustainability, the relationship of economic sustainability to environmental sustainability, and the extent to which these two factors ultimately affect financial growth. In order to achieve this, this study analyses the results of 342 questionnaires completed by managers of manufacturing companies within Saudi Arabia’s small and medium enterprises (SMEs) sector. This analysis, using structural equation modeling, showed that innovation inclination, customer centricity, supplier relationships, network maturity, and strategic agility all have significant effects on economic sustainability. This study also shows that economic sustainability has a significant impact on environmental sustainability and that economic sustainability and environmental sustainability positively impact financial growth. This study adds to the current literature by demonstrating an explicit association of innovation inclination, customer centricity, supplier relationships, network maturity, and strategic agility with economic sustainability, as well as a positive relationship between economic sustainability and environmental sustainability. The findings also contribute to the literature by showing the direct impact of both economic sustainability and environmental sustainability on financial growth. In practical terms, this study will help Saudi SMEs develop business strategies that drive both environmental and business performance and provide useful insights for Saudi policymakers and financial institutions looking to support the Saudi Vision 2030 aims by encouraging funding and support mechanisms that drive better business and environmental performance. Full article
(This article belongs to the Special Issue Sustainability in Business Development and Economic Growth)
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23 pages, 567 KiB  
Article
Crowdfunding in Portugal—Using the Raize Platform to Ensure the Sustainability of Companies and Projects
by Bruno Torres, Zélia Serrasqueiro and Márcio Oliveira
Sustainability 2024, 16(11), 4439; https://doi.org/10.3390/su16114439 - 23 May 2024
Cited by 1 | Viewed by 987
Abstract
This study aims to analyse the reasons why entrepreneurs choose to use collaborative financing through the Raize platform to finance their companies or projects through peer-to-peer crowdfunding (loans). This study is pertinent because it deals with an innovative, differentiated topic that presents itself [...] Read more.
This study aims to analyse the reasons why entrepreneurs choose to use collaborative financing through the Raize platform to finance their companies or projects through peer-to-peer crowdfunding (loans). This study is pertinent because it deals with an innovative, differentiated topic that presents itself as a possible disruptive form of financing and an alternative to traditional bank financing. Its use and significant take-up and the rapid and continuous growth of users on this type of crowdfunding platform is a strong sign of the need to better understand and study this phenomenon, its benefits, weaknesses, gaps and future mutations. Based on a comprehensive literature review and sound research methods such as exploratory qualitative multiple-case analysis, the aim is to gain a comprehensive understanding of the reasons why entrepreneurs and businesses choose crowdfunding through the Raize platform as a financing alternative. The aims of this study are to understand how financial accessibility, trust in the investor community, ease of use of the platform, competitiveness of fees and preference for crowdfunding over bank financing influence entrepreneurs’ decision to fund themselves through the Raize platform. The results reveal that entrepreneurs opt for the Raize platform due to a combination of factors. These reasons, clearly highlighted, provide a deeper understanding of entrepreneurs’ decision making in relation to financing their projects through crowdfunding. This study not only contributes to the literature on crowdfunding and entrepreneurship, but also offers practical pointers for entrepreneurs looking to obtain funding through a new financing system that is offered through the Raize platform, as it continues to support innovation and business growth in Portugal. Such funding contributes to and enhances the sustainability of companies in terms of their funding profile and attractive positioning in the market. Full article
(This article belongs to the Special Issue Sustainability in Business Development and Economic Growth)
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26 pages, 747 KiB  
Article
Examining the Quadratic Impact of Sovereign Environmental, Social, and Governance Practices on Firms’ Profitability: New Insights from the Financial Industry in Gulf Cooperation Council Countries
by Seyed Alireza Athari, Chafic Saliba, Elsa Abboud and Nourhan El-Bayaa
Sustainability 2024, 16(7), 2783; https://doi.org/10.3390/su16072783 - 27 Mar 2024
Cited by 6 | Viewed by 1627
Abstract
The present study particularly aims to probe the quadratic effects of the combined and individual sovereign environmental, social, and governance (ESG) activities on the banking sector’s profitability. Furthermore, we attempt to shed light on the channels through which sovereign ESG practices impact the [...] Read more.
The present study particularly aims to probe the quadratic effects of the combined and individual sovereign environmental, social, and governance (ESG) activities on the banking sector’s profitability. Furthermore, we attempt to shed light on the channels through which sovereign ESG practices impact the banking sector’s profitability. Unlike the vast majority of prior works that investigated the sustainability practice–firms’ profitability nexus from the firm level, this study originally probes this relationship from the country level by considering the sovereign ESG sustainability activities. To attain this purpose, we focus on banking sectors operating in Gulf Cooperation Council (GCC) economies and employ the panel-fixed effects and panel-corrected standard errors approaches between 2000 and 2022. Remarkably, the findings uncover that the nexus between combined sovereign ESG and profitability is a non-linear and inversed U-shape (concave), implying that investing in sovereign ESG enhances the banking sector’s profitability. However, after exceeding an inflection point (0.349), its effect turns out to be negative and it develops into activities of destruction. Furthermore, the findings underscore that the association between individual sovereign environmental responsibility and the banking sector’s profitability is a non-linear U-shape (convex), while an inversed U-shaped (concave) nexus is uncovered for the individual sovereign social and governance activities. Moreover, the significant non-linear inverted U-shape for the combined sovereign ESG–stability nexus corroborates that financial stability is a channel through which sovereign ESG significantly impacts profitability. Full article
(This article belongs to the Special Issue Sustainability in Business Development and Economic Growth)
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17 pages, 1376 KiB  
Article
Unveiling the Impacts of Corporate Environmental, Social, and Governance Disclosure
by Nguyen Thi Thanh Binh and Hung-Chang Lee
Sustainability 2024, 16(6), 2459; https://doi.org/10.3390/su16062459 - 15 Mar 2024
Cited by 1 | Viewed by 3429
Abstract
Amidst heightened scrutiny of corporate environmental, social, and governance (ESG) practices, this study employs threshold techniques combined with artificial neural networks to examine the impact of ESG disclosure on companies, emphasizing its pivotal role in promoting sustainability. Analyzing data from Taiwan’s 20 industries [...] Read more.
Amidst heightened scrutiny of corporate environmental, social, and governance (ESG) practices, this study employs threshold techniques combined with artificial neural networks to examine the impact of ESG disclosure on companies, emphasizing its pivotal role in promoting sustainability. Analyzing data from Taiwan’s 20 industries from 2012 to 2022, it finds that while ESG engagement positively influences financial performance, it also underscores the vital connection between corporate practices and sustainable development. This analysis explores the relationship between carbon emissions, operating expenses, and financial performance in the overall sample and a threshold sample based on a threshold variable. In the overall sample, carbon emissions significantly increase operating expenses, accompanied by other influential variables. Introducing a threshold value of firm size alters the dynamics, showing a positive and more pronounced impact in the threshold sample. The examination of financial performance metrics reveals significant positive associations with carbon emissions, particularly when the threshold is not met or exceeded. Intriguingly, subgroup analysis indicates a negative association between carbon emissions and financial performance within the larger-size subgroup, in stark contrast to a more pronounced positive relationship observed in the smaller-size subgroup. Furthermore, the developed ANN model exhibits robust learning capabilities, underscoring its efficacy in capturing complex patterns within the data. It suggests its potential as a reliable tool for accurately predicting carbon emissions across diverse scenarios, facilitating informed decision-making and policy formulation to mitigate environmental impact. Full article
(This article belongs to the Special Issue Sustainability in Business Development and Economic Growth)
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16 pages, 1052 KiB  
Article
Sustainability of Income Convergence in the European Union: Two Downturns—Two Different Stories
by Barbara Batóg and Jacek Batóg
Sustainability 2024, 16(3), 1339; https://doi.org/10.3390/su16031339 - 5 Feb 2024
Viewed by 1062
Abstract
The aim of this paper is to apply the concept of marginal vertical income convergence to analyze the influence of the two last economic downturns (2007 and 2020) on the sustainability of the equalization of income levels within the European Union. The methodology [...] Read more.
The aim of this paper is to apply the concept of marginal vertical income convergence to analyze the influence of the two last economic downturns (2007 and 2020) on the sustainability of the equalization of income levels within the European Union. The methodology used enables us to avoid some restrictions of the classical analysis of income convergence. Income convergence models were estimated using data from the period 1993–2022, excluding the impact of outliers. The results confirm that we can observe the progressive process of the absolute income convergence for EU members, but there are significant differences between countries’ contributions to the process. These differences are caused by different paths of economic growth, and different mean resilience to economic crises, as well as different patterns of income inequalities. Their proper recognition allows us to develop efficient policies aimed at social cohesion, reducing income inequalities (the 10th Sustainable Development Goal), and sustainable economic development. Additionally, the estimated models indicated a definite different impact of the last two economic shocks on the European process of income convergence. The first shock significantly slowed down the income convergence process, while the second one was practically neutral in this context. Full article
(This article belongs to the Special Issue Sustainability in Business Development and Economic Growth)
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14 pages, 307 KiB  
Article
How Does Corporate Innovation Affect Sustainable Business Investment?
by Jinsu Kim and Hyunchul Lee
Sustainability 2023, 15(18), 13367; https://doi.org/10.3390/su151813367 - 6 Sep 2023
Cited by 1 | Viewed by 1219
Abstract
This study examines the impact of corporate innovation on sustainable business investments of companies listed on the Korea exchange from 2011 to 2019. To this end, our study applies Hennessy’s investment model, which presents the relationship between corporate investment and Tobin’s mean Q [...] Read more.
This study examines the impact of corporate innovation on sustainable business investments of companies listed on the Korea exchange from 2011 to 2019. To this end, our study applies Hennessy’s investment model, which presents the relationship between corporate investment and Tobin’s mean Q in a probabilistic space. We find evidence of a positive relationship between corporate investment and Tobin’s average Q. Greater corporate growth opportunities lead to greater business investments, whereas the expected recovery ratio of debt capital has a negative relationship with corporate investments. The innovation performance variable is positively associated with the investments. Our results are suggestive of business investments being determined by investment outcomes, rather than the financial resource inputs for corporate innovation. Our study holds significance not only in the academic dimension, but also in policymaking. Since corporate growth is the outcome of corporate investments, the government may establish and implement economic policies that induce such investments. Full article
(This article belongs to the Special Issue Sustainability in Business Development and Economic Growth)
16 pages, 579 KiB  
Article
The Impact of Environmental Management on Labour Productivity
by Anton Nugent and Dragana Radicic
Sustainability 2023, 15(16), 12256; https://doi.org/10.3390/su151612256 - 11 Aug 2023
Viewed by 1958
Abstract
The green transition and green economic growth are policy priorities in the European Union. In this context, this study estimates the effects of environmental management on firm performance, in particular labour productivity. There is currently a lack of empirical evidence on this topic, [...] Read more.
The green transition and green economic growth are policy priorities in the European Union. In this context, this study estimates the effects of environmental management on firm performance, in particular labour productivity. There is currently a lack of empirical evidence on this topic, although it is of great importance due to the increasing need for environmental practices across the globe. Therefore, to address this gap, we explore the relationship between several environmental variables on labour productivity, through the use of cross-sectional firm-level data. These data were obtained using the sixth wave of the Business Environment and Enterprise Survey (BEEPS VI). This study focuses on ten EU countries. The results obtained from the empirical analysis reveal that firms who employ an environmental manager and firms that are subject to energy taxes or levies both have higher productivity than those who do not; thus, firms that have employed or are subject to certain environmental practices reap the benefits of higher labour productivity. Furthermore, firms that use renewable energy have higher labour productivity than those that do not. Therefore, the results obtained allowed us to draw implications for both policy makers and managers. Full article
(This article belongs to the Special Issue Sustainability in Business Development and Economic Growth)
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47 pages, 2915 KiB  
Article
Circular Business Model Value Dimension Canvas: Tool Redesign for Innovation and Validation through an Australian Case Study
by Md Tasbirul Islam and Usha Iyer-Raniga
Sustainability 2023, 15(15), 11553; https://doi.org/10.3390/su151511553 - 26 Jul 2023
Cited by 9 | Viewed by 4168
Abstract
Circular business models (CBMs) are integral to the concept of the circular economy (CE). The aims of the study are to (1) redesign a canvas for CBM and (2) validate it through a single case study. The developed canvas is called the “Circular [...] Read more.
Circular business models (CBMs) are integral to the concept of the circular economy (CE). The aims of the study are to (1) redesign a canvas for CBM and (2) validate it through a single case study. The developed canvas is called the “Circular Business Model Value Dimension Canvas”. For the validation, a semi-structured interview with a social enterprise (SE) operating in hybrid CBM (i.e., resource recovery, sharing platform, and product use extension) in Australia has been performed. Results showed that a successful hybrid CBM for a SE necessitates the integration of forward and reverse supply chains through partnerships with new product retailers and resource recovery companies. Other important factors include the presence of physical stores, an effective product return strategy, initial funding support from the government, the employment of young individuals with special needs, and the promotion of behavioral change among low-income customer segments. Although the canvas was applied to the enterprise, it can also be applied to other organizations as the canvas integrates all essential components for business modeling. The proposed canvas serves as a supportive tool for CBM innovation (CBMI) and provides a framework for researchers to investigate the CBMI process in organizations transitioning from linear to circular. Full article
(This article belongs to the Special Issue Sustainability in Business Development and Economic Growth)
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24 pages, 2054 KiB  
Article
General Fundraising Trends among University Patrons and Entrepreneurs to Promote the Sustainability of Universities
by Laila Kundzina, Baiba Rivza, Liva Grinevica and Peteris Rivza
Sustainability 2023, 15(14), 10868; https://doi.org/10.3390/su151410868 - 11 Jul 2023
Viewed by 1999
Abstract
One of the most important issues for higher education institutions is achieving financial viability and sustainability by expanding revenue sources, as the costs associated with ensuring the operation of higher education institutions is increasing. Therefore, raising funds through donations for universities means new [...] Read more.
One of the most important issues for higher education institutions is achieving financial viability and sustainability by expanding revenue sources, as the costs associated with ensuring the operation of higher education institutions is increasing. Therefore, raising funds through donations for universities means new challenges. Within the framework of this study, the authors have drawn attention to attracting funds to universities from patrons of universities and companies, providing a detailed analysis of trends in this field. The purpose of this study was to analyze the general trends in fundraising among university patrons and businessmen, and to identify possible solutions that could help in attracting donations to universities and promote their sustainability in the future. The research methodology applied in this research included analysis of the literature, conducting surveys, and analysis using statistical methods such as the correlation method, chi-squared test, and ANOVA. This study provides an insight into the situation in Latvia regarding the trends of patrons and entrepreneurs donating to universities. The results of this study show that philanthropic organizations should work on building a feedback relationship with patrons to promote as much fundraising as possible. Full article
(This article belongs to the Special Issue Sustainability in Business Development and Economic Growth)
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12 pages, 833 KiB  
Article
The Relationship between Democracy and Economic Growth in the Path of Sustainable Development
by Hosein Mohammadi, Flavio Boccia and Amirhossein Tohidi
Sustainability 2023, 15(12), 9607; https://doi.org/10.3390/su15129607 - 15 Jun 2023
Cited by 5 | Viewed by 14451
Abstract
Democracy has both a direct and an indirect relationship with sustainable development. Democracy is related to the movement toward long-term economic development directly, and indirectly, democracy can provide the means to create the institutional structures needed to create links between the political systems, [...] Read more.
Democracy has both a direct and an indirect relationship with sustainable development. Democracy is related to the movement toward long-term economic development directly, and indirectly, democracy can provide the means to create the institutional structures needed to create links between the political systems, the culture of participation, and the social values of a society. Since economic development is a multidimensional concept and one of its primary requirements is to achieve a high level of income and appropriate economic growth, knowing the relationship between democracy and economic growth is especially important for policymakers. Many important questions are raised about the relationship between democracy and economic performance. What is the relationship between democracy and economic growth? Is this relationship different in developed countries and developing countries? Considering the effects of democracy and economic growth on the welfare of communities, the main purpose of this study was to investigate the causal relationship between democracy and economic growth from 1990–2020 for the OECD and selected developing countries. The results showed that the conflict and skeptical hypotheses had been established in OECD and developing countries, respectively. It was concluded that the pattern of economic growth and development in OECD countries differed from that in developing countries. For OECD countries, real per capita GDP growth was mainly affected by previous per capita GDP growth, and the effect of democracy on per capita economic growth was negative. Moreover, the results indicated that in developing countries, democracy alone had not triggered economic growth and that real per capita GDP growth depended on other important structural variables such as social and physical infrastructure. Full article
(This article belongs to the Special Issue Sustainability in Business Development and Economic Growth)
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