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The Role of GDP Growth in the ESG Approach at World Level

Author

Listed:
  • Angelo Leogrande

    (LUM University Giuseppe Degennaro)

  • Alberto Costantiello

    (LUM University Giuseppe Degennaro)

Abstract

We analyze the question of GDP Growth-GDPG rate in the context of Environmental, Social and Governance-ESG framework. We use World Bank data for 193 countries in the period 2011-2020 using different econometric techniques i.e., Panel Data with Fixed Effects, Panel Data with Random Effects, Pooled Ordinary Least Squares-OLS. We found that GDPG rate is positively associated, among others, to "Government Effectiveness" and "Prevalence of Undernourishment" and negatively associated among others to "Unemployment" and "Research and Development Expenditure". Furthermore, we have applied the k-Means algorithm optimized with the Elbow method and we found the presence of four clusters in the sense of GDPG rate. Finally, we confront eight machine learning algorithms to predict the value of GDPG rate and we found that the Polynomial Regression is the best predictor. The Polynomial Regression predicts an increase of GDPG rate equal to 2.88% on average for the analysed countries.

Suggested Citation

  • Angelo Leogrande & Alberto Costantiello, 2023. "The Role of GDP Growth in the ESG Approach at World Level," Working Papers hal-04086231, HAL.
    • Handle: RePEc:hal:wpaper:hal-04086231
    Note: View the original document on HAL open archive server: https://hal.science/hal-04086231
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    References listed on IDEAS

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    1. Costantiello, Alberto & Leogrande, Angelo, 2023. "The Impact Of Research And Development Expenditures On Esg Model In The Global Economy," SocArXiv xy6ew, Center for Open Science.
    2. Costantiello, Alberto & Leogrande, Angelo, 2023. "The Determinants of CO2 Emissions in the Context of ESG Models at World Level," MPRA Paper 117110, University Library of Munich, Germany.
    3. Gil Cohen, 2023. "ESG risks and corporate survival," Environment Systems and Decisions, Springer, vol. 43(1), pages 16-21, March.
    4. Ho, Sy-Hoa & OUEGHLISSI, Rim & EL FERKTAJI, Riadh, 2019. "The dynamic causality between ESG and economic growth: Evidence from panel causality analysis," MPRA Paper 95390, University Library of Munich, Germany.
    5. Cherkasova, Victoria & Nenuzhenko, Irina, 2022. "Investment in ESG Projects and Corporate Performance of Multinational Companies," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 37(1), pages 54-92.
    6. Costantiello, Alberto & Leogrande, Angelo, 2023. "The Regulatory Quality and ESG Model at World Level," MPRA Paper 116663, University Library of Munich, Germany.
    7. Costantiello, Alberto & Leogrande, Angelo, 2023. "The Ease of Doing Business in the ESG Framework at World Level," MPRA Paper 117086, University Library of Munich, Germany.
    8. Laureti, Lucio & Costantiello, Alberto & Leogrande, Angelo, 2022. "The Role of Renewable Energy Consumption in Promoting Sustainability and Circular Economy. A Data-Driven Analysis," MPRA Paper 115763, University Library of Munich, Germany, revised 25 Dec 2022.
    9. Costantiello, Alberto & Leogrande, Angelo, 2023. "The Role of Political Stability in the Context of ESG Models at World Level," MPRA Paper 116887, University Library of Munich, Germany.
    10. Maha Alandejani & Habiba Al-Shaer, 2023. "Macro Uncertainty Impacts on ESG Performance and Carbon Emission Reduction Targets," Sustainability, MDPI, vol. 15(5), pages 1-15, February.
    11. Laureti, Lucio & Costantiello, Alberto & Leogrande, Angelo, 2023. "The Role of Government Effectiveness in the Light of ESG Data at Global Level," MPRA Paper 115998, University Library of Munich, Germany.
    12. Alberto Costantiello & Angelo Leogrande, 2023. "The Impact of Voice and Accountability in the ESG Framework in a Global Perspective," Working Papers hal-04043775, HAL.
    13. Giovanni Ferri & Angelo Leogrande, 2015. "Was the Crisis Due to a Shift from Stakeholder to Shareholder Finance? Surveying the Debate," Euricse Working Papers 1576, Euricse (European Research Institute on Cooperative and Social Enterprises).
    14. Ferri Giovanni & Leogrande Angelo, 2021. "Stakeholder Management, Cooperatives, and Selfish-Individualism," Journal for Markets and Ethics, Sciendo, vol. 9(2), pages 61-75, December.
    15. Lucio Laureti & Alessandro Massaro & Alberto Costantiello & Angelo Leogrande, 2023. "The Impact of Renewable Electricity Output on Sustainability in the Context of Circular Economy: A Global Perspective," Sustainability, MDPI, vol. 15(3), pages 1-29, January.
    16. Leogrande, Angelo, 2023. "The Rule of Law in the ESG Framework in the World Economy," MPRA Paper 116293, University Library of Munich, Germany.
    17. Giuliana Birindelli & Stefano Dell’Atti & Antonia Patrizia Iannuzzi & Marco Savioli, 2018. "Composition and Activity of the Board of Directors: Impact on ESG Performance in the Banking System," Sustainability, MDPI, vol. 10(12), pages 1-20, December.
    18. Tuan-Hock Ng & Chun-Teck Lye & Kar-Hoong Chan & Ying-Zhee Lim & Ying-San Lim, 2020. "Sustainability in Asia: The Roles of Financial Development in Environmental, Social and Governance (ESG) Performance," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 150(1), pages 17-44, July.
    19. Laureti, Lucio & Costantiello, Alberto & Leogrande, Angelo, 2022. "The fight against corruption at global level. A metric approach," MPRA Paper 115837, University Library of Munich, Germany.
    20. Christian Morgenstern & Guillaume Coqueret & James Kelly, 2022. "International market exposure to sovereign ESG," Post-Print hal-04325654, HAL.
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    Cited by:

    1. Leogrande, Angelo & Leogrande, Domenico & Costantiello, Alberto, 2023. "The Impact of Patent Applications in the Context of the ESG Model at World Level," EconStor Preprints 273495, ZBW - Leibniz Information Centre for Economics.
    2. Angelo Leogrande & Domenico Leogrande & Alberto Costantiello, 2023. "The Role of Unemployment in the ESG Model at World Level," Working Papers hal-04154793, HAL.

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    More about this item

    Keywords

    Analysis of Collective Decision-Making; General; Political Processes: Rent-Seeking; Lobbying; Elections; Legislatures and Voting Behaviour; Bureaucracy; Administrative Processes in Public Organizations; Corruption; Positive Analysis of Policy Formulation; Implementation;
    All these keywords.

    JEL classification:

    • D7 - Microeconomics - - Analysis of Collective Decision-Making
    • D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation

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