IDEAS home Printed from https://ideas.repec.org/a/rfh/bbejor/v13y2024i1p110-117.html
   My bibliography  Save this article

Nexus among Regulatory Framework, Economic Growth and Sustainable Development: Insights from Structural Equation Modeling Approach

Author

Listed:
  • Fiaz Ahmad Sulehri

    (PhD Scholar, Lahore School of Accountancy and Finance, The University of Lahore, Pakistan)

  • Amjad Ali

    (Associate Professor, Lahore School of Accountancy and Finance, The University of Lahore, Pakista)

Abstract

The concept of sustainable development holds immense importance for both current and future generations. This study investigates the manner in which economic growth acts as a mediator in the relationship between sustainable development and the regulatory framework. We have utilized the structural equation modeling technique to investigate the direct and indirect impacts of exogenous and endogenous variables. We executed this investigation using a sample of 24 countries that accounted for about 65% of global greenhouse gas emissions between 2000 and 2019. According to empirical results based on direct effects, the regulatory framework hinders sustainable development and economic growth. The empirical findings indicate that the regulatory framework has a noteworthy and favorable indirect influence on sustainable development, with economic growth serving as a mediating factor. Furthermore, because of the positive indirect effect, the regulatory framework's negative direct effect on sustainable development outweighs its total adverse effect. In the end, legislators should give utmost importance to creating a balanced regulatory framework that promotes economic expansion while incorporating concepts of environmental, social, and economic sustainability to ensure the well-being of present and future generations.

Suggested Citation

  • Fiaz Ahmad Sulehri & Amjad Ali, 2024. "Nexus among Regulatory Framework, Economic Growth and Sustainable Development: Insights from Structural Equation Modeling Approach," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 13(1), pages 110-117.
    • Handle: RePEc:rfh:bbejor:v:13:y:2024:i:1:p:110-117
    DOI: https://doi.org/10.61506/01.00200
    as

    Download full text from publisher

    File URL: https://bbejournal.com/BBE/article/view/754/690
    Download Restriction: no
    File URL: https://bbejournal.com/BBE/article/view/754
    Download Restriction: no
    File URL: https://libkey.io/https://doi.org/10.61506/01.00200?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Sulehri, Fiaz Ahmad & Ali, Amjad, 2020. "Impact of Political Uncertainty on Pakistan Stock Exchange (1990-1999): An Event Study Approach," MPRA Paper 104623, University Library of Munich, Germany.
    2. Marc Audi & Amjad Ali, 2023. "The Role of Environmental Conditions and Purchasing Power Parity in Determining Quality of Life among Big Asian Cities," International Journal of Energy Economics and Policy, Econjournals, vol. 13(3), pages 292-305, May.
    3. Marc Audi & Amjad Ali, 2023. "Public Policy and Economic Misery Nexus: A Comparative Analysis of Developed and Developing World," International Journal of Economics and Financial Issues, Econjournals, vol. 13(3), pages 56-73, May.
    4. Marc Audi & Marc Poulin & Amjad Ali, 2024. "Environmental Impact of Business Freedom and Renewable Energy: A Global Perspective," International Journal of Energy Economics and Policy, Econjournals, vol. 14(3), pages 672-683, May.
    5. Amjad Ali & Marc Audi, 2018. "Macroeconomic Environment and Taxes Revenues in Pakistan: An Application of ARDL Approach," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 7(1), pages 30-39, March.
    6. Marc Audi & Amjad Ali & Mohamad Kassem, 2020. "Greenhouse Gases: A Review of Losses and Benefits," International Journal of Energy Economics and Policy, Econjournals, vol. 10(1), pages 403-418.
    7. Juan Dempere & Muhammad Qamar & Hesham Allam & Sabir Malik, 2023. "The Impact of Innovation on Economic Growth, Foreign Direct Investment, and Self-Employment: A Global Perspective," Economies, MDPI, vol. 11(7), pages 1-22, July.
    8. Amjad Ali & Marc Audi, 2016. "The Impact of Income Inequality, Environmental Degradation and Globalization on Life Expectancy in Pakistan: An Empirical Analysis," International Journal of Economics and Empirical Research (IJEER), The Economics and Social Development Organization (TESDO), vol. 4(4), pages 182-193, April.
    9. Marc Audi & Amjad Ali, 2023. "Unveiling the Role of Business Freedom to Determine Environmental Degradation in Developing Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 13(5), pages 157-164, September.
    10. Ali, Amjad & Audi, Marc, 2023. "Analyzing the Impact of Foreign Capital Inflows on the Current Account Balance in Developing Economies: A Panel Data Approach," MPRA Paper 118173, University Library of Munich, Germany.
    11. Ali, Amjad, 2022. "Foreign Debt, Financial Stability, Exchange Rate Volatility and Economic Growth in South Asian Countries," MPRA Paper 116328, University Library of Munich, Germany, revised 2022.
    12. Ali, Amjad & Ehsan, Rehan & Audi, Marc & Hamadeh, Hani Fayad, 2022. "Does Globalization Promote Financial Integration in South Asian Economies? Unveiling the Role of Monetary and Fiscal Performance in Internationalization," MPRA Paper 115304, University Library of Munich, Germany.
    13. Ali, Amjad, 2022. "Financial Liberalization, Institutional Quality and Economic Growth Nexus: Panel Analysis of African Countries," MPRA Paper 116329, University Library of Munich, Germany, revised 2022.
    14. Sulehri, Fiaz Ahmad & Ali, Amjad, 2024. "Country Risk and Sustainable Development: Mediating Role of Economic Growth," MPRA Paper 121290, University Library of Munich, Germany.
    15. Eric Joel Caro, 2017. "Effects of Macroeconomic Factors in the Performance of Micro Finance Institutions in Ecuador," International Journal of Economics and Financial Issues, Econjournals, vol. 7(5), pages 547-551.
    16. Ali, Amjad, 2022. "Determining Pakistan's Financial Dependency: The Role of Financial Globalization and Corruption," MPRA Paper 116097, University Library of Munich, Germany.
    17. Hickel, Jason, 2020. "The sustainable development index: Measuring the ecological efficiency of human development in the anthropocene," Ecological Economics, Elsevier, vol. 167(C).
    18. Audi, Marc & Ali, Amjad & Fayad Hamadeh, Hani, 2022. "Nexus among innovations, financial development and economic growth in developing countries," MPRA Paper 115220, University Library of Munich, Germany.
    19. Sulehri, Fiaz Ahmad & Ali, Amjad, 2024. "Assessing the Pathways of Sustainable Development: A Structural Equation Modeling Investigation of Regulatory Framework, Innovation, and Economic Indicators," MPRA Paper 121286, University Library of Munich, Germany.
    20. Ali, Amjad & Khokhar, Bilal & Sulehri, Fiaz Ahmad, 2023. "Financial Dimensions of Inflationary Pressure in Developing Countries: An In-depth Analysis of Policy Mix," MPRA Paper 119364, University Library of Munich, Germany.
    21. Marc Audi & Fiaz Ahmad Sulehri & Amjad Ali & Razan Al-Masri, 2022. "An Event Based Analysis of Stock Return and Political Uncertainty in Pakistan: Revisited," International Journal of Economics and Financial Issues, Econjournals, vol. 12(5), pages 39-56, September.
    22. Thomas Pogge, 2004. "The First United Nations Millennium Development Goal: A cause for celebration?," Journal of Human Development and Capabilities, Taylor & Francis Journals, vol. 5(3), pages 377-397.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Fiaz Ahmad Sulehri & Marc Audi & Marc Poulin & Amjad Ali, 2024. "Nexus between Innovation and Ecological Impact: A Moderated Mediation Investigation through Structural Equation Modeling Approach," International Journal of Energy Economics and Policy, Econjournals, vol. 14(4), pages 509-518, July.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Fiaz Ahmad Sulehri & Marc Audi & Marc Poulin & Amjad Ali, 2024. "Nexus between Innovation and Ecological Impact: A Moderated Mediation Investigation through Structural Equation Modeling Approach," International Journal of Energy Economics and Policy, Econjournals, vol. 14(4), pages 509-518, July.
    2. Fiaz Ahmad Sulehri & Sana Sarwar Sulehri & Rubina Fiaz Sulehri, 2023. "Unveiling Economic Distress In South Asia: Does Stock Market Performance Matter?," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 12(2), pages 447-456.
    3. Sulehri, Fiaz Ahmad & Ali, Amjad, 2024. "Assessing the Pathways of Sustainable Development: A Structural Equation Modeling Investigation of Regulatory Framework, Innovation, and Economic Indicators," MPRA Paper 121286, University Library of Munich, Germany.
    4. Sulehri, Fiaz Ahmad & Ali, Amjad, 2024. "Country Risk and Sustainable Development: Mediating Role of Economic Growth," MPRA Paper 121290, University Library of Munich, Germany.
    5. Marc Audi & Marc Poulin & Amjad Ali, 2024. "Determinants of Business Freedom in Developing Countries: The Role of Institutional Development and Policy Mix," International Journal of Economics and Financial Issues, Econjournals, vol. 14(4), pages 188-199, July.
    6. Ali, Amjad, 2022. "Financial Liberalization, Institutional Quality and Economic Growth Nexus: Panel Analysis of African Countries," MPRA Paper 116101, University Library of Munich, Germany.
    7. Ali, Amjad, 2022. "Foreign Debt, Financial Stability, Exchange Rate Volatility and Economic Growth in South Asian Countries," MPRA Paper 116099, University Library of Munich, Germany.
    8. Amjad Ali & Zohaib Ul Hasan & Qasim Abbasi & Fiaz Ahmad Sulehri, 2023. "Business Or Politics: Exploring The Determinants Of Policy Mix In South Asia," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 12(3), pages 114-123.
    9. Ali, Amjad, 2022. "Determining Pakistan's Financial Dependency: The Role of Financial Globalization and Corruption," MPRA Paper 116097, University Library of Munich, Germany.
    10. Ullah, Asad & Ali, Amjad, 2024. "Investigating Corruption, Income Inequality, and Environmental Degradation in Pakistan: A Time Series Analysis," MPRA Paper 121291, University Library of Munich, Germany.
    11. Maria Bano & Dr. Muhammad Nawaz & Touseef Ahmad & Fatima Ejaz, 2023. "The Performance of Small and Medium Sized Enterprises (SMEs) in Punjab: A Moderating Role of Corporate Image," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 12(3), pages 650-666.
    12. Ahsan Pervaiz, 2023. "Internationalization of Traditional and E-Business in Finance: A Comparative Study," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 12(3), pages 612-628.
    13. Roussel, Yannick & Audi, Marc, 2024. "Exploring the Nexus of Economic Expansion, Tourist Inflows, and Environmental Sustainability in Europe," MPRA Paper 121529, University Library of Munich, Germany.
    14. Muhammad Waleed Khalid & Aqueel Imtiaz Wahga & Muhammad Gulzaib Chaudhary & Safyan Majid & Muhammad Awais, 2023. "Impact of Financial Literacy on Access to Finance and Firm Performance: An Analysis of Growing Industry Cluster in Pakistan," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 12(4), pages 45-53.
    15. Ali, Amjad & Audi, Marc, 2023. "Analyzing the Impact of Foreign Capital Inflows on the Current Account Balance in Developing Economies: A Panel Data Approach," MPRA Paper 118173, University Library of Munich, Germany.
    16. Marc Audi & Fiaz Ahmad Sulehri & Amjad Ali & Razan Al-Masri, 2022. "An Event Based Analysis of Stock Return and Political Uncertainty in Pakistan: Revisited," International Journal of Economics and Financial Issues, Econjournals, vol. 12(5), pages 39-56, September.
    17. Asad Abbas & Mamoona Sayyeda Gul Zarrin, 2023. "Brain Drain and Economic Growth: An ARDL Analysis," Journal of Policy Research (JPR), Research Foundation for Humanity (RFH), vol. 9(1), pages 528-537.
    18. Fiaz Ahmad Sulehri & Mohammad Ahmed & Amjad Ali, 2022. "Proprietorship Structure and Firm Performance in the Context of Tunneling: An Empirical Analysis of Non-Financial Firms in Pakistan," Journal of Policy Research (JPR), Research Foundation for Humanity (RFH), vol. 8(4), pages 115-124, December.
    19. Abdul Hai Rathore & Abdullah Sahi, 2022. "The impact of Corporate Governance on voluntary disclosure of R&D expenditure of USA Pharmaceutical firms," Journal of Policy Research (JPR), Research Foundation for Humanity (RFH), vol. 8(2), pages 34-53, August.
    20. Shahid Manzoor Shah & Amjad Ali, 2022. "A Survey on Financial Inclusion: Theoretical and Empirical Literature Review," Journal of Policy Research (JPR), Research Foundation for Humanity (RFH), vol. 8(4), pages 310-330, December.

    More about this item

    Keywords

    Regulatory Framework; Economic Growth; Sustainable Development; Structural Equation Model;
    All these keywords.

    JEL classification:

    • K32 - Law and Economics - - Other Substantive Areas of Law - - - Energy, Environmental, Health, and Safety Law
    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
    • 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

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rfh:bbejor:v:13:y:2024:i:1:p:110-117. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dr. Muhammad Irfan Chani (email available below). General contact details of provider: https://edirc.repec.org/data/rffhlpk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.