AI Readiness, Renewable Energy, and Industrial Development: Structural Approach to Sustainable Growth

This study examines the determinants of economic growth in the 27 countries with the highest GDP during the period 2008–2020. The analysis employs new-generation panel data methods that account for cross-country common shocks, spillover effects, and structural differences. In this context, the relationship between economic growth and artificial intelligence readiness, renewable energy use, the level of industrialisation, and the unemployment rate has been tested. The findings indicate that technological capacity and advancements in artificial intelligence support growth through the channels of productivity, innovation, and total factor productivity. The use of renewable energy, meanwhile, contributes to growth by reducing production costs, strengthening energy security and encouraging environmentally sustainable investments. Whilst industrialisation emerges as one of the key drivers of growth through economies of scale and increased value added, unemployment constrains growth due to idle labour and weak domestic demand. The results indicate that R&D, digital transformation, renewable energy infrastructure, industrial policies and inclusive employment strategies must be strengthened in tandem to ensure long-term stability.