Trade-offs and synergies when balancing economic growth and globalization for sustainable development goals achievement

Abstract

This study investigates the complex relationships between globalization, economic growth, urbanization, and ecological footprint in the context of advancing the United Nations Sustainable Development Goals (SDGs). Employing a club convergence framework, we evaluate global SDG Index from 2000 to 2023 for 149 countries with 3212 observations, identifying five converging clubs and one non-converging group. Our analysis demonstrates that higher GDP per capita and various dimensions of globalization positively impact SDG outcomes, whereas rapid urbanization and expansive ecological footprints exert negative influences. This research highlights the critical need for tailored policy interventions that address the distinct challenges encountered by different country clusters to bolster sustainable development efforts. Our findings reveal the multifaceted nature of sustainable development, indicating that economic growth and globalization can support SDG advancement if their detrimental effects are effectively mitigated. The study offers valuable insights for crafting national and global strategies to expedite progress towards the SDGs, emphasizing the importance of harmonizing economic, social, and environmental priorities.