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Profound Impact of Economic Openness and Digital Economy towards a Sustainable Development: A New Look at RCEP Economies

Author

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  • Feilan Wang

    (Institute of international Economy and Trade, Fujian Business University, Fuzhou 350001, China)

  • Mengmeng Jin

    (Graduate School of Cavite State University, Indang, Cavite 4100, Philippines)

  • Jianfeng Li

    (Faculty of Engineering, China University of Geosciences (Wuhan), Wuhan 430000, China
    Zhongjiao Yuanzhou Transportation Technology Group Co., Ltd., Fujian Branch, Fuzhou 350001, China)

  • Yushuo Zhang

    (Faculty of Social Sciences, Graduate School of Lingnan University, Hongkong 999077, China)

  • Junbo Chen

    (Wenzhou City Taiwan Research Center, Zhejiang Industry &Trade Vocational College, Wenzhou 325000, China)

Abstract

Sustainable development has become a serious challenge for the globe. Therefore, globalization and the digital economy are considered crucial factors for sustainable development (SD). The current study tries to estimate the link between trade openness and information and communication technology (ICT) with sustainable growth via a linear function in which economic growth, urbanization, and human capital are taken as independent variables. The study employs the Interactive Fixed Effect (IFE) and Dynamic Common Correlated Effect (D-CCE) to quantify the long-term association among variables in a multiplicative framework. The obtained outcomes show a significant contribution of globalization and the digital economy to sustainable growth. Likewise, economic growth and human capital cause a decline in sustainable growth. Moreover, the empirical outcomes show the discouraging role of urbanization in sustainable development. Additionally, a bi-directional association exists between sustainable development and trade openness and economic growth, trade openness and economic growth, urbanization and human capital, and economic growth and urbanization. Such findings further strengthen policymakers’ belief in other nations to promote sustainable development. Moreover, to alleviate the economic growth losses, we suggest setting up a sustainable development sharing mechanism among regions.

Suggested Citation

  • Feilan Wang & Mengmeng Jin & Jianfeng Li & Yushuo Zhang & Junbo Chen, 2022. "Profound Impact of Economic Openness and Digital Economy towards a Sustainable Development: A New Look at RCEP Economies," Sustainability, MDPI, vol. 14(21), pages 1-21, October.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:21:p:13922-:d:954092
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