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Sustainable development spillover effects of China and the US on Iran: analysis of integrated sustainability perspective

Author

Listed:
  • Ebrahim Afshari

    (Islamic Azad University)

  • Mhrzad Ebrahimi

    (Islamic Azad University)

  • Hashem Zare

    (Islamic Azad University)

Abstract

This paper aims to estimate sustainability elasticities to investigate how the sustainable development pillars in Iran should interact with those of the greatest economies in the west and east of the world, i.e., the US and China, respectively. For this estimation, this research uses SEY model including simultaneous equations system and Granger causality within 1972–2019 via two approaches of limited and full information. The results show high elasticities of sustainability among these countries, implying their considerable spillover effects and confirming the integrated sustainability perspective. In addition, the results show that the sustainability spillover effects of China are more massive than those the US on Iran sustainable development pillars. This result has two implications. The first one accepts the considerable flow of spillover effects between Iran and China. The second one shows that Iran has been unsuccessful in employing and activating the potential flows of sustainability spillover effects from the US as the greatest global economy. Therefore, policy-makers in Iran should consider a peaceful and collaborative relationship with the global community to improve and accelerate its sustainable development progress. Also, they should keep their relationship with China as the second biggest economy in the world while improving the relationship with the US to activate the potential spillover effects between the sustainability pillars of Iran and those of the US.

Suggested Citation

  • Ebrahim Afshari & Mhrzad Ebrahimi & Hashem Zare, 2024. "Sustainable development spillover effects of China and the US on Iran: analysis of integrated sustainability perspective," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(6), pages 15163-15175, June.
    • Handle: RePEc:spr:endesu:v:26:y:2024:i:6:d:10.1007_s10668-023-03243-8
    DOI: 10.1007/s10668-023-03243-8
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