Sustainable Development Spillover in MENA and Europe: Regional Interactions of Social, Environment and Economy

Document Type : Research Paper

Authors

1 Department of Economic Development and Planning, Faculty of Management and Economics, Tarbiat Modares University, Tehran, Iran; Chair of Growth Economics, Structural Change, and Trade, Faculty of Law and Economics, Greifswald University, Greifswald, Germany.

2 Department of Economic Development and Planning, Faculty of Management and Economics, Tarbiat Modares University, Tehran, Iran.

3 Chair of Growth Economics, Structural Change, and Trade, Faculty of Law and Economics, Greifswald University, Greifswald, Germany.

4 Economic Research Institute, Tarbiat Modares University, Tehran, Iran.

Abstract

In 2015, the United Nations (UN) launched a unique platform, including 17 Sustainable Development Goals (SDGs) for improving global sustainability. However, it remains ambiguous whether globalization as a result of the UN agenda is beneficial for (or detrimental to) global sustainability. This study aims to investigate if globalization and openness are helpful for sustainability. To this aim, our research estimates the elasticities of sustainable development pillars between two regions of MENA and Europe as a case study from 1971 to 2016. It uses the econometric methodology to develop the SEY model which includes a simultaneous equations system, Granger causality, and VAR. The results show that the spatial sustainability elasticities are mostly positive between MENA and Europe, confirming the constructive role of globalization and openness on sustainability. The policymakers are advised to follow flow-based governance to tackle sustainable development issues. Thus, the unique global agenda of the UN has sufficient capability to improve sustainable development in the world. 

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Main Subjects

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Iranian Economic Review
Volume 27, Issue 2
July 2023
Pages 471-503

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