Green Trade and Globalization as Drivers of Sustainable Development in Emerging Economies

Sustainable development has become a crucial objective for emerging economies as they navigate globalization and trade liberalization. This study examines the relationship between green trade, globalization, and sustainable development in 27 emerging economies from 2000 to 2019 using Bayesian regression analysis. The results indicate that green trade positively influences sustainable development, with a mean parameter of 0.0131 and a posterior probability of 89.05%. Similarly, globalization has a positive effect, with a mean parameter of 0.0007 and a probability of 81.67%. Additionally, the study identifies an inverted U-shaped relationship between per capita income and sustainable development, suggesting that while income growth initially enhances sustainability, excessive levels may hinder it. A similar nonlinear pattern is observed for financial development. Institutional quality also plays a positive role in promoting sustainable development, with a probability of influence exceeding 80%. These findings highlight the importance of green trade, globalization, and institutional quality in fostering sustainable development in emerging economies.