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<p>This study utilizes annual data from 2009 to 2023 across 78 developing countries to examine the impact of innovation on Green GDP and how institutional quality moderates this effect. Both static and dynamic regression models indicate that innovation enhances green growth, while institutional quality negatively moderates this relationship. The findings reveal that innovation plays a more significant role in upper-middle-income nations, whereas institutional quality is more critical in lower-middle-income countries. Additional robustness checks and Quantitative Comparative Analysis (QCA) support the notion that effective institutional frameworks can enhance Green GDP through innovation. The study concludes that enhancing institutional quality is crucial for attaining sustainable green growth in developing nations. Furthermore, it suggests that institutional reform can enhance the positive impact of innovation on Green GDP, thereby contributing to the existing literature. The study employs a robust empirical methodology, providing policymakers with crucial insights to align innovation with environmental sustainability objectives.</p>

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Pathways to sustainable development: an examination of innovation and institutional quality’s role in green GDP Outcomes Using QCA

  • 期刊论文

  • 发表日期：

    2026年7月4日

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  • Muhammad Nadir Shabbir,
  • Kainat Iftikhar,
  • Mirza Muhammad Naseer

摘要

This study utilizes annual data from 2009 to 2023 across 78 developing countries to examine the impact of innovation on Green GDP and how institutional quality moderates this effect. Both static and dynamic regression models indicate that innovation enhances green growth, while institutional quality negatively moderates this relationship. The findings reveal that innovation plays a more significant role in upper-middle-income nations, whereas institutional quality is more critical in lower-middle-income countries. Additional robustness checks and Quantitative Comparative Analysis (QCA) support the notion that effective institutional frameworks can enhance Green GDP through innovation. The study concludes that enhancing institutional quality is crucial for attaining sustainable green growth in developing nations. Furthermore, it suggests that institutional reform can enhance the positive impact of innovation on Green GDP, thereby contributing to the existing literature. The study employs a robust empirical methodology, providing policymakers with crucial insights to align innovation with environmental sustainability objectives.