Editorials: 2025 Vol: 26 Issue: 2S
Tom Klarl, University of Science and Technology, China
Citation Information: Klarl, T. (2025). Driving forces behind sustainable economic growth in developing economies. Journal of Economics and Economic Education Research, 26(S2), 1-3
Sustainable economic growth is a critical goal for developing economies aiming to reduce poverty, improve living standards, and build resilient societies. This article explores the primary drivers that contribute to long-term, inclusive, and environmentally conscious growth. It emphasizes the importance of institutional quality, infrastructure development, education and human capital, technological innovation, foreign direct investment, and sound economic policies. By analyzing the interplay between these factors, the article provides insight into how developing countries can design strategies that promote sustainable growth while minimizing environmental degradation and social inequalities.
Sustainable Growth, Developing Economies, Infrastructure, Human Capital, Innovation, Foreign Investment, Policy Reform, Economic Development.
Economic growth is essential for developing nations seeking to reduce poverty and enhance the quality of life for their citizens. However, growth that comes at the cost of environmental degradation, inequality, or long-term instability is ultimately counterproductive. Thus, the focus has shifted toward sustainable economic growth—a model that balances economic advancement with social equity and environmental preservation (Abro et al., 2023).
Effective institutions form the backbone of sustainable growth. Transparent legal systems, anti-corruption measures, property rights, and efficient bureaucracies help create a stable environment for investment and innovation. Without strong governance, even the most well-planned economic strategies may fail to reach their full potential (Armeanu et al., 2017).
Infrastructure—transportation, energy, telecommunications, and sanitation—is a key driver of economic productivity. It reduces transaction costs, facilitates trade, and connects rural areas to larger markets. For example, investments in roads and electricity can empower local businesses, encourage entrepreneurship, and improve access to education and healthcare (Awan, 2012).
A well-educated workforce is essential for productivity and innovation. Countries that invest in education, particularly in STEM fields and vocational training, are better positioned to adapt to global economic shifts. Education also empowers individuals to make informed decisions, participate in civic life, and contribute meaningfully to economic development (Dao, 2014).
Technology enables developing economies to leapfrog traditional development stages. Mobile banking, e-commerce, and digital services have transformed sectors in Africa, Southeast Asia, and Latin America. Supporting digital infrastructure and fostering innovation ecosystems can drive long-term growth and create high-value jobs (Famiyeh et al., 2021).
FDI provides not just capital but also access to global markets, management expertise, and new technologies. When paired with local capacity building and regulatory oversight, FDI can catalyze industrialization and technological upgrading. Host countries must, however, ensure that investment agreements align with national development goals (Groumpos, 2013).
Participating in regional and global trade networks allows countries to scale industries and diversify exports. Trade agreements like the African Continental Free Trade Area (AfCFTA) open new opportunities for businesses, lower tariffs, and promote regional value chains. Balanced trade policies can also protect emerging industries during their infancy (Kuznets, 1980).
Sustainable growth cannot ignore the environment. Climate change, deforestation, and resource depletion disproportionately affect developing nations. Green technologies, renewable energy, and sustainable agriculture practices can ensure that economic progress does not undermine ecological resilience (Li et al., 2021).
Economic growth must be inclusive to be sustainable. Policies that promote gender equality, rural development, and small and medium-sized enterprises (SMEs) ensure that benefits are widely shared. Social protection programs and targeted subsidies can support vulnerable populations during periods of economic transition (Radmehr et al., 2022).
Stable fiscal and monetary policies create a conducive environment for investment and long-term planning. Controlling inflation, managing public debt, and maintaining a competitive exchange rate help build investor confidence and ensure macroeconomic stability (Rahman & Alam, 2021).
Sustainable economic growth in developing economies is multifaceted, requiring coordinated efforts across various sectors. While each country faces unique challenges, the core drivers—good governance, infrastructure, education, technology, FDI, trade, and inclusivity—remain universally applicable. With strategic planning and a long-term vision, developing nations can achieve growth that is not only robust but also resilient and equitable.
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Received: 01-April-2025, Manuscript No. jeeer-25-15868; Editor assigned: 04-April-2025, PreQC No. jeeer-25-15868(PQ); Reviewed: 17-April-2025, QC No. jeeer-25-15868; Revised: 24-April-2025, Manuscript No. jeeer-25-15868(R); Published: 30-April-2025