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Globalizing green innovation: Impact on green GDP and pathways to sustainability

Author

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  • Shabbir, Muhammad Nadir
  • Linh, Duong Thuy

Abstract

From 2009 to 2023, the study investigates in 78 developing nations the link between green innovation, Green GDP, and globalization. It finds using dynamic panel data models that green innovation greatly increases Green GDP while globalization has a beneficial moderating effect by allowing technological transfer and worldwide cooperation. Using econometric methods, an ecologically inclusive metric—green GDP—is examined to handle problems including heteroscedasticity and endogeneity. Emphasizing customized policy measures, the research also finds thresholds in the efficacy of green innovation depending on human development levels. Robustness tests validate the results and underline the need of green innovation in sustainable development as well as the combined effect of globalization. Particularly addressing issues in the framework of developing economies, this study offers insightful analysis for legislators and stakeholders to promote sustainable economic growth by means of innovation and globalization in developing countries.

Suggested Citation

  • Shabbir, Muhammad Nadir & Linh, Duong Thuy, 2025. "Globalizing green innovation: Impact on green GDP and pathways to sustainability," Research in Economics, Elsevier, vol. 79(1).
    • Handle: RePEc:eee:reecon:v:79:y:2025:i:1:s1090944325000195
    DOI: 10.1016/j.rie.2025.101042
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    Keywords

    Green GDP; Green Innovation; Globalization; Threshold; Developing countries;
    All these keywords.

    JEL classification:

    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • F02 - International Economics - - General - - - International Economic Order and Integration
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General

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