RETHINKING SUSTAINABLE DEVELOPMENT THROUGH FREEDOM AND ANTI-CORRUPTION: EVIDENCE FROM TWO GLOBAL DEVELOPMENT TIERS
DOI:
https://doi.org/10.18623/rvd.v22.n6.3957Palabras clave:
Sustainable Development, Economic Freedom, Control of Corruption, Institutional Quality, Bayesian Analysis, Developing Countries, Developed CountriesResumen
This study examines how economic freedom and control of corruption influence sustainable development across two global development tiers, consisting of 22 developing countries and 28 developed countries during the period 2008 to 2023. Using the Sustainable Development Goal Index as a comprehensive measure of sustainability, the study applies a Bayesian regression framework to capture parameter uncertainty and improve inference in the presence of institutional diversity. The results show a clear divergence between the two groups. In developing economies, economic freedom reduces sustainable development performance, reflecting weak regulatory capacity, unequal market structures, and the expansion of pollution intensive activities. In contrast, countries with advanced institutional systems benefit from economic freedom, which promotes innovation, efficient resource allocation, and stronger environmental governance. Control of corruption also displays asymmetric effects. It does not generate immediate sustainability gains in developing countries where corruption remains systemic, but it significantly enhances sustainable development in developed countries where governance structures are more effective. The interaction effect demonstrates that stronger corruption control can reduce the negative impact of economic freedom in developing economies, while showing diminishing returns in developed economies. The findings highlight that economic freedom can support sustainable development only when supported by strong institutions and effective anti corruption strategies.
Citas
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