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Institutions as a Fundamental Cause for Long-Run Sustainability

Author

Listed:
  • Soukaina El Maachi

    (Intelligent Systems and Sensor Networks (SIRC), Hassania School of Public Works, Km 7 Route D’El Jadida, Casablanca BP 8108, Morocco)

  • Rachid Saadane

    (Intelligent Systems and Sensor Networks (SIRC), Hassania School of Public Works, Km 7 Route D’El Jadida, Casablanca BP 8108, Morocco)

  • Abdellah Chehri

    (Department of Mathematics and Computer Science, Royal Military College of Canada, Kingston, ON K7K 7B4, Canada)

Abstract

The development of sustainable societies relies upon the institutional structures that govern the relationship between economic systems and environmental leadership. In this study, we engage with the juxtaposition between inclusive and extractive institutions as potential molders of the trajectory of sustainability. Featuring governance indicators and economic metrics, we explore the impact of institutional inclusiveness and extractiveness on sustainability outcomes. Inclusiveness, which enables the prosperity of collective well-being through democratic governance, legal integrity, and innovation, is posited as an affirmative force for sustainability. In contrast, extractive institutions, which concentrate power and resources, hinder the realization of sustainable development by perpetuating inequality and exploitation. This paper suggests a statistic pipeline, comprised of econometric regression, machine learning models, and clustering analysis, to assess the impact of governance and economic performance on sustainability indices. We posit that inclusiveness serves as a potent driver for sustainability, particularly when coupled with economic resources, whereas extractiveness leads to the attenuation of sustainable progress. Through this work, we aim to gauge how institutions can either hinder or propel the material conditions necessary for the achievement of sustainability.

Suggested Citation

  • Soukaina El Maachi & Rachid Saadane & Abdellah Chehri, 2025. "Institutions as a Fundamental Cause for Long-Run Sustainability," JRFM, MDPI, vol. 18(3), pages 1-24, February.
    • Handle: RePEc:gam:jjrfmx:v:18:y:2025:i:3:p:114-:d:1597314
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    References listed on IDEAS

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    1. Alice Klettner & Thomas Clarke & Martijn Boersma, 2014. "The Governance of Corporate Sustainability: Empirical Insights into the Development, Leadership and Implementation of Responsible Business Strategy," Journal of Business Ethics, Springer, vol. 122(1), pages 145-165, June.
    2. Natkhov, T. & Polishchuk, L., 2017. "Political Economy of Institutions and Development: The Importance of Being Inclusive. Reflection on "Why Nations Fail" by D. Acemoglu and J. Robinson. Part II. Institutional Change and Implications for Russia," Journal of the New Economic Association, New Economic Association, vol. 35(3), pages 12-32.
    3. Hong, Yongmiao & Liu, Yanhui & Wang, Shouyang, 2009. "Granger causality in risk and detection of extreme risk spillover between financial markets," Journal of Econometrics, Elsevier, vol. 150(2), pages 271-287, June.
    4. Natkhov, T. & Polishchuk, L., 2017. "Political Economy of Institutions and Development: The Importance of Being Inclusive. Reflection on "Why Nations Fail" by D. Acemoglu and J. Robinson. Part I. Institutions and Economic Development. Institutional Choice," Journal of the New Economic Association, New Economic Association, vol. 34(2), pages 12-38.
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