Government expenditure and sustainable development in emerging markets: The role of institutional quality
In a contemporary era, fostering economic growth, social inclusion and environmental performance are crucial global objectives. While the dynamics among government spending, institutional quality and each of the aforementioned pillars of sustainable development have been widely examined, gaps remain...
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| Format: | Article |
| Language: | English |
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Elsevier
2025-06-01
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| Series: | Journal of Open Innovation: Technology, Market and Complexity |
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| Online Access: | http://www.sciencedirect.com/science/article/pii/S2199853125000939 |
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| author | Hoang Phong Le Thanh Huu Phu Nguyen Ho Hoang Gia Bao |
| author_facet | Hoang Phong Le Thanh Huu Phu Nguyen Ho Hoang Gia Bao |
| author_sort | Hoang Phong Le |
| collection | DOAJ |
| description | In a contemporary era, fostering economic growth, social inclusion and environmental performance are crucial global objectives. While the dynamics among government spending, institutional quality and each of the aforementioned pillars of sustainable development have been widely examined, gaps remain in how public spending and quality of governance shape sustainable development in a holistic approach. The gaps, however, become more significant in emerging markets where inherent structural challenges and sustainability objectives coexist. Therefore, the study investigates the dynamics among government expenditure, institutional quality and sustainable development in 46 emerging market economies from 1990 to 2022. The tests for cross-sectional dependence, slope homogeneity and panel cointegration confirm the coexistence of cross-sectional dependence, slope heterogeneity and cointegration in the panel data. Consequently, the CS-ARDL, CS-DL and AMG models are used to analyze the variables due to the inherent panel characteristics. The findings, which remain stable under different econometric specifications, suggest that the individual effects of government spending and institutional quality on sustainable development may be negative in the long run. However, these effects are conditional and context specific. Public spending contributes positively to sustainable development when implemented within a strong institutional framework, highlighting the importance of policy coherence. The study, therefore, suggests the need for integrated fiscal and institutional strategies to effectively advance sustainable development in emerging economies. |
| format | Article |
| id | doaj-art-b6e8b46db34e4d33b84f53f00752c963 |
| institution | OA Journals |
| issn | 2199-8531 |
| language | English |
| publishDate | 2025-06-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Journal of Open Innovation: Technology, Market and Complexity |
| spelling | doaj-art-b6e8b46db34e4d33b84f53f00752c9632025-08-20T02:02:24ZengElsevierJournal of Open Innovation: Technology, Market and Complexity2199-85312025-06-0111210055810.1016/j.joitmc.2025.100558Government expenditure and sustainable development in emerging markets: The role of institutional qualityHoang Phong Le0Thanh Huu Phu Nguyen1Ho Hoang Gia Bao2School of Public Finance, College of Economics, Law and Government, University of Economics Ho Chi Minh City (UEH), Ho Chi Minh City, Vietnam; Department of Finance and Accounting Management, Ho Chi Minh City University of Law, Ho Chi Minh City, Vietnam; Correspondence to: Ho Chi Minh City University of Law, 02 Nguyen Tat Thanh Street, District 4, Ho Chi Minh City, Viet Nam.Department of Finance and Accounting Management, Ho Chi Minh City University of Law, Ho Chi Minh City, VietnamDepartment of Finance and Accounting Management, Ho Chi Minh City University of Law, Ho Chi Minh City, VietnamIn a contemporary era, fostering economic growth, social inclusion and environmental performance are crucial global objectives. While the dynamics among government spending, institutional quality and each of the aforementioned pillars of sustainable development have been widely examined, gaps remain in how public spending and quality of governance shape sustainable development in a holistic approach. The gaps, however, become more significant in emerging markets where inherent structural challenges and sustainability objectives coexist. Therefore, the study investigates the dynamics among government expenditure, institutional quality and sustainable development in 46 emerging market economies from 1990 to 2022. The tests for cross-sectional dependence, slope homogeneity and panel cointegration confirm the coexistence of cross-sectional dependence, slope heterogeneity and cointegration in the panel data. Consequently, the CS-ARDL, CS-DL and AMG models are used to analyze the variables due to the inherent panel characteristics. The findings, which remain stable under different econometric specifications, suggest that the individual effects of government spending and institutional quality on sustainable development may be negative in the long run. However, these effects are conditional and context specific. Public spending contributes positively to sustainable development when implemented within a strong institutional framework, highlighting the importance of policy coherence. The study, therefore, suggests the need for integrated fiscal and institutional strategies to effectively advance sustainable development in emerging economies.http://www.sciencedirect.com/science/article/pii/S2199853125000939Sustainable developmentGovernment expenditureInstitutional qualityEmerging marketsCS-ARDLDCCEMG |
| spellingShingle | Hoang Phong Le Thanh Huu Phu Nguyen Ho Hoang Gia Bao Government expenditure and sustainable development in emerging markets: The role of institutional quality Journal of Open Innovation: Technology, Market and Complexity Sustainable development Government expenditure Institutional quality Emerging markets CS-ARDL DCCEMG |
| title | Government expenditure and sustainable development in emerging markets: The role of institutional quality |
| title_full | Government expenditure and sustainable development in emerging markets: The role of institutional quality |
| title_fullStr | Government expenditure and sustainable development in emerging markets: The role of institutional quality |
| title_full_unstemmed | Government expenditure and sustainable development in emerging markets: The role of institutional quality |
| title_short | Government expenditure and sustainable development in emerging markets: The role of institutional quality |
| title_sort | government expenditure and sustainable development in emerging markets the role of institutional quality |
| topic | Sustainable development Government expenditure Institutional quality Emerging markets CS-ARDL DCCEMG |
| url | http://www.sciencedirect.com/science/article/pii/S2199853125000939 |
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