THE ROLE OF ECONOMIC STRUCTURES AND POLICY DRIVERS IN SUSTAINABLE ECONOMIC GROWTH ACROSS EMERGING ECONOMIES

Abstract

This study examines the interplay between economic structures and policy drivers in fostering sustainable economic growth across 20 emerging economies from 1991 to 2020. The Dynamic Common Correlated Effects (DCCE) estimation model analyzes the impacts of six key variables: agricultural value-added, industrial value-added, gross savings, energy transition index, quality of trade infrastructure, and human capital development. The findings reveal that each factor significantly contributes to sustainable economic growth in both the short and long term, emphasizing the critical role of modernization, infrastructure enhancement, and strategic policy interventions. The study highlights agriculture and industry as pivotal for economic diversification, while gross savings mitigate foreign debt reliance and bolster investments. Renewable energy adoption, trade infrastructure, and human capital development emerge as essential for economic resilience and innovation. By addressing methodological gaps in prior research, this work provides robust empirical evidence to guide policymakers in integrating structural reforms and sustainable practices, thereby balancing economic progress and environmental stewardship.

Keywords: Agricultural Value-Added, Industrial Value-Added, Gross Savings, Energy Transition Index, Human Capital Development, Sustainable Economic Growth