Socioeconomic Determinants of Sustainable Development Goal Performance: A Global Perspective

Abstract

This study empirically investigates the socioeconomic determinants of national performance on the Sustainable Development Goals through an extensive analysis covering 148 countries from 2001 to 2023. Employing panel data methodologies, including panel least squares and the generalized method of moments estimation to address endogeneity and autocorrelation, the research examines the influence of gross domestic product per capita, inflation measured by the consumer price index, the human development index, and unemployment rates on national sustainable development goal index scores. The findings reveal that the human development index exerts the most substantial positive impact on sustainable development goal achievement, underscoring the critical role of investments in health, education, and income equality in advancing sustainability. The relationship between gross domestic product per capita and sustainable development goal performance exhibits a negative sign in PLS but becomes insignificant in GMM, suggesting nuanced dynamics. Persistent unemployment emerges as a key barrier, consistently hindering progress on decent work and social stability goals. Inflation exhibits a context-dependent influence, manifesting as a negative factor once broader macroeconomic dynamics are considered. The results identify human development as the principal catalyst for sustainable progress while also highlighting the complex interdependencies within economic variables. The study advocates for integrated policy approaches that prioritize human capital development and implement targeted economic reforms aimed at addressing labor market volatility and inflationary challenges, thereby fostering inclusive momentum toward the realization of the 2030 Agenda.

Keywords: Sustainable Development Goals, GDP Per Capita, Unemployment, Inflation