Encirclement of productive capacities and institutions in context of sustainable development

Abstract

The question of whether productive capacities and institutional quality facilitate or impede progress towards sustainable development is a significant issue that has not been extensively explored in prior literature. Despite their importance, these variables are often overlooked in the literature on sustainable development, yet they play a crucial role in enabling efforts to achieve sustainable development. In this study, we examined how productive capacities affect sustainable development, with a moderating impact of institutional quality. The sample was comprised of 44 Belt and Road Initiative (BRI) economies, covering the period from 2000 to 2018. Using a two-step system GMM, we found that the relation between productive capacities and sustainable development is dynamic, positive, and significant. Additionally, institutional quality played a moderating role in achieving sustainable development, especially among regionally connected countries. Our findings suggest that sustainable development is strongly linked to a country’s productive capacities. Therefore, improving productive capacities and institutional quality may lead to long-term development and sustainability. These results are valuable to academia as they provide new thought regarding the influence of productive capacities and institutional quality on sustainable development, and policymakers may benefit from the suggestions presented regarding productive capacities and institutional quality.

Role of scientific and technological innovations on industrial upgradation in China: A spatial econometric analysis

“…While China has made significant strides in informatization, there are some challenges and these challenges can limit the extent to which informatization contributes to industrial upgradation. China’s approach to openness has often prioritized attracting foreign investment and expanding exports, sometimes at the expense of focusing on the quality and innovation of domestic industries [ 52 , 53 ]. This focus on quantity over quality can limit the impact of openness on industrial upgradation.…”