The Nexus between Sustainable Development and Economic Dynamics in MENA and SSA Countries.

Abstract

The complex interplay between economic dynamics and sustainable development in Sub-Saharan Africa (SSA) and the Middle East and North Africa (MENA) remains underexplored. This thesis investigates this nexus, focusing on the roles of corruption, governance, foreign direct investment, and trade in shaping sustainable development outcomes. Additionally, it examines the relationship between energy poverty and education, as well as the hidden barriers to renewable energy transition in SSA. Findings indicate that while good governance and corruption reduction can significantly advance sustainable development in SSA and MENA nations, the region faces substantial challenges in mitigating energy poverty. Employing CS-ARDL approach to assess more robust and reliable results, the findings reveal that – contrary to existing literature – governance has a significant positive effect on sustainable development, indicating that the governance is essential to achieving sustainable development in this region. The findings also reveal that the corruption has a significant positive effect on sustainable development. Furthermore, foreign direct investment and trade were found to have an insignificant relationship with sustainable development. By uncovering the intricate connections between economic factors, energy poverty, and sustainable development, this research contributes to a deeper understanding of the barriers hindering progress in these regions. The findings underscore the urgent need for innovative policies that prioritise governance, education, and renewable energy to accelerate sustainable development in SSA and MENA.