Unraveling the Dynamics of Economic Complexity, Clean Energy, Globalization, and Natural Resource Use for Sustainable Development: Insights from “Next 11” Countries

Sustainable development is significantly influenced by various factors, including natural resource rents (NARR), economic complexity (ECCP), globalization (GLBL), economic growth (ENG), renewable energy consumption (RNEC), and institutional quality (INTQ). This study examines the relationships between these factors and sustainable development in the “Next 11” (N-11) countries, from 1996 to 2021. The results of the cross-sectional dependence and co-integration tests reveal significant long-term relationships between these factors. The outcomes of pooled mean group autoregressive distributed lag (PMG-ARDL) analyses show that ECCP, ENG, RNEC, GLBL, INTQ and NARR significantly improve the sustainable development of the N-11 countries in the long run. Furthermore, the results show that ENG, INTQ, and NARR deteriorate, while ECCP, RNEC, and GLBL improve the sustainable development of the N-11 countries in the short run. To further analyze the complex relationships in the dataset, an artificial neural network (ANN) was applied. The results show a linear prediction with an overall R value of 0.987, indicating a robust correlation between the variables. This study provides valuable policy implications for the N-11, highlighting opportunities to enhance long-term ecological sustainability. The findings suggest that policymakers can promote sustainable development by leveraging economic complexity, renewable energy consumption, and institutional quality, while minimizing the negative impacts of globalization and ecological footprints.