Nexus between Governance and Sustainable Development in Developing Countries: A Simultaneous Approach

Authors

  • Ayesha Siddiqa University of Management and Technology, Lahore-Pakistan
  • Muhammad Hassan Danish University of Management and Technology, Lahore-Pakistan
  • Muhammad Ashfaq IU International University of Applied Sciences

DOI:

https://doi.org/10.15408/etk.v24i2.45368

Keywords:

financial development, governance, sustainable development, developing countries, panel GMM, panel 3SLS

Abstract

Research Originality: The present research contributes a novel task in examining the simultaneous relationship between governance and sustainable development (SD), aiming to capture the endogenous relationship between these two concepts.

Research Objectives: This study examines the relationship between governance and sustainable development in 59 developing countries, utilizing annual data from 2006 to 2022.

Research Method: The study employs panel Generalized Methods of Moment (GMM) and panel three-stage least squares (3SLS) techniques by using STATA 17. Data for this study is extracted from the World Development Indicators (WDI), International Financial Statistics, and World Governance Indicators.

Empirical Results:  The findings indicate that governance, tax-to-GDP ratio, and financial development are positively related to SD. Moreover, SD also has a positive impact on governance in developing countries. Control variables, including the misery index and population, are negatively related to governance.

Implications: The study offers policy recommendations to enhance transparency and government quality, which are integrated into the development process to reduce social disparities, mitigate environmental challenges, foster economic growth, and ensure the well-being of citizens.

JEL Classification: F63, O16, Q01

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Author Biography

  • Muhammad Hassan Danish, University of Management and Technology, Lahore-Pakistan

    Dr. Muhammad Hassan Danish is currently working as an Assistant Professor of Economics at School of Commerce and Accountancy, University of Management and Technology, Lahore. He has completed his Ph.D in Economics at National College of Business Administration and Economics, Lahore-Pakistan. Additionally, he gained international research experience as a visiting Ph.D. scholar at Radboud University in the Netherlands, supported by a fully funded scholarship from the Higher Education Commission of Pakistan. He is also a chief editor of Audit and Accounting Review-UMT Journals. His major area of PhD research is Economics of Happiness. He did his Masters and MPhil in Economics from University of the Punjab, Lahore where his major part of work based on Human and Social capital, health and micro-level issues of households and individuals. He also served as an Assistant Research Fellow at Punjab Economic Research Institute (PERI) for two years, where he was involved in public policy and planning of Punjab. His major research work at PERI was on Agriculture sector and its issues and on social sector. He has published over 18 research articles in national and international journals related to his research interests—mainly on the happiness and productivity. He is also an HEC Approved PhD Supervisor. His expertise’s include micro econometrics and panel data analysis. Additionally he has excellent command of data analysis on STATA, SPSS, EXCEL especially focused on micro and survey data.

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Published

2025-09-30

Issue

Vol. 24 No. 2 (2025)

Section

Articles

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Copyright (c) 2025 Ayesha Siddiqa, Muhammad Hassan Danish, Muhammad Ashfaq

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This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

How to Cite

Nexus between Governance and Sustainable Development in Developing Countries: A Simultaneous Approach. (2025). ETIKONOMI, 24(2). https://doi.org/10.15408/etk.v24i2.45368