Research

UNIVERSITY LOGO
Master Degree in
Environmental Economics
“Correlation between SDGs and

Economic Growth (looking for EKCs),
departing from Easterly's "Life during
growth.”
Supervisor
Professor
Name SURNAME
Candidate
Professor
Name SURNAME Name SURNAME
ID: 909090
Academic Year 2017/2018

Dedication/Acknowledgements
(optional)
1
Abstract
Economic growth has been associated with excessive resource

utilization to achieve a high quality of life. This has, in turn, led to severe
ecological problems, which have made the present development patterns
unsustainable. Some of the problems include poverty, political instability,
environmental aspects, inequality among others remain the critical
challenges confronted by the ever-increasing population living under a
dollar on a daily basis. Through the United Nations, the indicators were
introduced to address the sustainability concept. However, empirical
evidence have indicated various inconsistencies related to the
interpretation as well as the use of a sole SDG indicator. Therefore, this
quantitative study seeks to examine the correlation between SDGs and
economic growth from the perspective of developing and developed
nations during the period 1990 to 2016. The SDG indicators will be limited
to some categories namely inequality, transportation and communication,
democracy, political, poverty, environmental, and socio-economic
indicators. Using a correlational quantitative design, the study examines
these selected indicators using various statistical instruments. Most of the
indicators appear to be positively correlated with economic growth.
Additionally, socio-economic aspects among the nations were attributed
for the uneven implementation of the SDG indicators. The outcome of this
study is expected to inform existing literature on the relationship between
economic development and the cross-nation fixed elements representing
the SDGs among nations.
3
Table of contents
Table of contents 5
Chapter 1. Introduction 1
1.1. Introduction 1
1.2. Background of the study 2
1.3. Problem Statement 5
1.4. Purpose of the study 6
1.5. Research Questions 6
1.6. Nature of the Study 8
1.7. Significance 9
Chapter 2. Literature Review 11
2.1. Introduction 11
2.2. Economic Growth and Environmental Impact 11
2.3. Impact of Economic Growth on Inequality 12
2.4. Impact of Economic Growth on Health, Education,
Transport and Communications 14
2.5. Impact of Economic Growth on Political Instability
and War 16
2.6. Impact of Economic Growth on Democracy and
Individual Rights 16
2.7. Summary of Review 17
Chapter 3. Research Methodology 18
3.2. Research Method and Design 24
3.3. Sample 26
5
3.4. Materials/Instruments 26
3.5. Operational Definition of Variables 27
3.6. Data Collection, Processing, and Analysis 31
3.7. Assumptions 31
3.8. Limitations 32
3.9. Delimitations 33
3.10. Ethical issues 35
3.11. Summary 36
Chapter 4. Results 36
4.2. Characteristics of the variables 37
4.2.1. Socio-economic aspects 37
4.2.2. Environmental aspects 41
4.2.3. Inequality 42
4.2.4. Poverty 43
4.2.5. Freedom 44
4.2.6. Democracy 45
4.2.7. Income level 47
4.2.8. Reliability analysis 48
4.3. Hypothesis testing 49
4.3.1. The relationship between economic growth and
environment 49
inequality 51
socio-economic issues 53
6
4.3.4. Relationship between economic growth and
political stability 56
4.3.5. Relationship between economic growth and
democracy 57
4.4. Uneven implementation of SDGs 59
4.5. Summary 61
Chapter 5. Discussion 62
5.2. Socio-economic aspects 62
5.3. Political instability 64
5.4. Democracy 64
5.5. Environment 64
5.6. Inequalities 65
Chapter 6. Conclusion 65
7
List of Acronyms
EKCs Environmental Kuznets Curves
GDP Gross Domestic Product
MDGs Millennium Development Goals
SDGs Sustainable Development Goals
UN United Nations
UNCED
UNCTAD
WDI World Bank's World Development Indicators
9
Chapter 1. Introduction
1.1. Introduction
Many nations have embraced social development goals (SDGs) proposed by the
United Nations (UN) as a new paradigm for achieving economic growth and improving
the quality of life. Actually numerous indicators were previously been used to evaluate
how the SDGs contribute to economic growth across countries.
No definition that clearly explains what the SDGs entails has been offered. Most
previous studies on SDGs have appraised them in terms of goals, indicators, and
targets to comprehensively indicate how this novel tool assess the impacts of
economic growth. Sustainable development goals (SDGs) surfaced in the social circle
of economic development after the collapse of the goal-oriented Millennium
Development Goals (MDGs).
For instance, Kates classified aspects that are addressed by the SDGs into three
main areas namely the environment, the existing community, and the life support.1
Drawing its strength from the environment, life support is associated with the
provision of essential services that tend to support the survival of humankind. This
definition was further expanded by the World Summit of 2002 for Sustainable
Development in which the attendees sub-divided the main areas into three key pillars
2
namely financial, social and ecological pillars of sustainable development. By doing
this, the World Summit widened the spectrum encompassed by SDGs with respect to
MDHs to include both environmental and social aspects. On the other hand, the World
Summit development expressed all development as part of economic growth. A
majority of the authors within the realms of sustainable development have found this
definition difficult to understand concerning inequality, social injustice, and human
development.
The SDGs have been examined in terms of the goals, which it intends to
accomplish. According to Nunes, Lee, and O'Riordan, the SDGs consist of 17 goals and
169 targets that were initially proposed by the United Nations General Assembly (UN-
1
Kates, Robert W. "What is sustainable development?." (2018).
2
Singh, Ms Vineeta. "An Impact and Challenges of Sustainable Development in Global
Era." Journal of Economics 2, no. 2 (2014): 327-337.
1
GA).3 The goals have been classified into three groups based on the proposed
attainable timescale.4 These three groups of SDG goals include short-term goals that
were drawn from the 2015 Millennium Development Goals (MDGs) of the UN, two-
generational goals that are supposed to be fulfilled by 2050 and the long-term goals
that are meant to support economic development beyond 2050. Regarding the targets,
the goals were sub-divided into specific targets to improve the quality of life such as
reducing the level of poverty, by 50 percent, improve access to universal primary
education by the year 2015. Additionally, evaluation of these specific targets was
assigned to several international bodies. To assess the attainment of each and every
subgoal, a set of 330 indicators were formulated after years of negotiations and
consultations with various governments.
The encompassing nature of the SDG concept offers a political perspective of

the current challenges faced by the global population within the field of sustainable
developments that is associated with some flaws. Some of the aspects that have
inhibited the potential benefits of SDGs include a partial view of poverty, inequality,
dreadful environmental conditions, ambiguity regarding the role of economic
development and sustainability.
1.2. Background of the study
From a historical perspective, sustainable development was initially created

under the umbrella of the United Nations (UN) summit that was in charge of
environment and development. This was after approximately three decades that the
sustainability concept was recognized by the UN and the international agencies, with
the aim of addressing multple disparate as well as providing practical ways of
managing them. The summit was meant to come up with actionable plans and
approaches that can be used to shift towards more sustainable ways of development.
Additionally, the umbrella term sustainability provided numerous solutions, which can
be used to solve most of the environmental and developmental issues around the globe
5
that were presented in the Brundtland report of 1987. The Brundtland report also
provides a common path that was intended to support sustainability from a global
3
Nunes, Ana Raquel, Kelley Lee, and Tim O'Riordan. "The importance of an integrating framework for achieving the Sustainable
Development Goals: the example of health and well-being." BMJ global health 1, no. 3 (2016): e000068.
4
Kates, What is sustainable development, 2018.
5
Keeble, Brian R. "The Brundtland report:‘Our common future’." Medicine and War 4, no. 1
(1988): 17-25.
2
perspective. Some of the problems highlighted by the report included human activities
that were detrimental to the environment. If these activities were allowed to continue
unchecked, they would lead to unsustainable trends of development. The Commission
report stated that the summit supported “development that currently meets the
needs of the present generation while taking into consideration the capacity of future
generation as well to meet their needs”.
The formulation of SDGs was followed by international recognition of some

principles. For instance, the freedom of the nations to pursue their preferred socio-
economic policies that best solves their problems was guaranteed in Agenda 21 of the
UNCED.6 Other achievements include a political declaration, Kyoto climate agreement
among others. Despite the benefits which are associated with sustainability, numerous
challenges affect the progress of solving some of the problems facing the globe. Some
of the challenges include poverty, environmental exploitation using less-sustainable
approaches among others which forms the scope of the aspects being examined.The
tenets of neoliberal economic agenda such as deregulation, privatization and cuts in
the government budget have undermined the achievement of sustainable development
by increasing poverty, inequality, exploitation of the environment, political issues,
communication and transportation issues.7 These aspects are examined in relation to
economic growth while considering if they meet the Kuznets curve. The Kuznets curve
has increased been used to illustrate the association between economic growth and
environmental quality. Research has depicted the Kuznets curve in terms of an
continuous increase in economic growth as well as the environmental degradation.8
However, the environmental quality tends to improve as economic growth becomes
more sustainable for a nation.
Numerous studies have examined the contribution of social development goals

(SDGs) towards economic development from a nation’s perspective. Most of these
studies have relied on a diverse set of indicators to measure the extent to which the
inserimento of SDGs in national policies contributes to improved economic
6
Keeble, The Brundtland report, pp. 18.
7
Hassan, M. Kabir. "An integrated poverty alleviation model combining zakat, awqaf and micro-
finance." In Seventh International Conference–The Tawhidic Epistemology: Zakat and Waqf
Economy, Bangi, Malaysia, pp. 261-281. 2010.
8
Ahmet Atıl Aşıcı. "Economic growth and its impact on environment: A panel data
analysis." Ecological indicators 24 (2013): 324-333.
3
development, yielding inconsistent resultd regarding the interpretation of the
different indicators used to measure economic growth.9
Rather than assessing how economic growth contributes to SDGs since their
creation, recent literature has instead focused on the association between economic
development and SDGs from a cross-national perspective in which they relied on some
fixed factors. The use of nation ﬁxed elements implies that econometric approaches
have the capacity to control the effects associated with fixed elements as well as the
variations arising. However, cross-sectional outcome remains a critical areas of
interest.
Models based on nation’s ﬁxed elements found only a weak association between
the level of income attained and its contributes to various aspects of the SDGs such as
inequality, reduction in poverty among others, with inconsistent results or they have
been associated with varying interpretations for the diverse indicators used.
Scholars of economic growth and sustainable development have till now

restricted their studies to a limited number of indicators, besides a single study from
the World Health Organisation.10 Moreover, previous studies have examined the
association between economic growth and a specific indicator while other indicators
are held constant using cross-sectional designs. So previous literaturehas not
addressed the question posed by the present study, that is, whether the interrelation
among several SDGs adds to the interpretation of the impact of economic development
on sustainability. For instance, Veisi suggested that a nation’s geopraphical location,
its access to natural resources,and the sea, are the main explanatory indicators that
are linked to economic growth.11 Easterly also considered ethnolinguistic segmentation
as the primary indicator, which coherently described different development rates
based on ethnolinguistic borders in Africa’s economy.12 These indicators can influence
the relationship between SDGs and economic growth. However, this study will
categorize the indicators into three main groups to determine its relation to economic
growth namely inequality, socio-economic, political, and environmental indicators.
9
Easterly, William. "Life during growth." Journal of economic growth 4, no. 3 (1999): 239-276
10
World Health Organization. World health statistics 2016: monitoring health for the SDGs
sustainable development goals. World Health Organization, 2016.
11
Veisi, Mohsen. "Essays on the links between Natural Resources, Corruption, Taxation and
Economic Growth." PhD diss., The University of Manchester, 2017.
12
Easterly, William. "Life during growth." Journal of economic growth 4, no. 3 (1999): 239-276.
4
Therefore, this current study examines the correlation between sustainable
development goals (SDGs) and economic growth from the perspective of a nation
based on the Kuznet curve with a focus on environmental, and socio-economic
indicators.
1.3. Problem Statement
Despite being a relatively new policy, economic growth is considered a concern

for most nations not only at not only at the governmental level but also for
intercontinental trading agreements, large firms, and individuals around the globe.
The focus of SDGs as an innovative measure of economic progress has been censured
for some reasons. This despite the fact that it still assumes a critical role in policy
decisions performed by economists.
The fundamental problem addressed by this quantitative study is the association

of economic growth with excessive resource utilization. This has, in turn, led to severe
ecological problems, which have made the present development patterns
environmentally unsustainable. A study conducted by Motesharrei et al., highlights that the
current world population is relying on more resources than it should and estimates
that the Earth needs to regenerate at a rate of 150 percent in order to maintain
mankind’s annual production and utilization of goods and services levels.13 As a result
of stretching the environmental limits, there has been increased changes to the
climatic conditions such as enhanced emission of carbon dioxide from industries,
increased global warming among others.
The rise in income levels, poverty and inequality, remain the critical challenges
confronted by the ever-increasing population living under a dollar on a daily basis. A
report presented by Alexandratos and Jelle suggested that the current world
population is projected to rise to 9 billion by the year 2050, while approximately 4
billion people are anticipated to join the middle-class consumption levels.14 This will
exert more pressure on the current resources.
13
Motesharrei, Safa, Jorge Rivas, Eugenia Kalnay, Ghassem R. Asrar, Antonio J. Busalacchi,
Robert F. Cahalan, Mark A. Cane et al. "Modeling sustainability: population, inequality,
consumption, and bidirectional coupling of the Earth and Human Systems." National Science
Review 3, no. 4 (2016): 470-494.
14
Alexandratos, Nikos, and Jelle Bruinsma. World agriculture towards 2030/2050: the 2012
revision. Vol. 12, no. 3. FAO, Rome: ESA Working paper, 2012.
5
During the last two decades, income inequality has widened with rapid wealth
accumulation witnessed in the last few years. Additionally, the few rich and affluent
members of the society have acquired more wealth.
Given the colossal challenges that are confronted by nations in their efforts to
achieve economic growth, it is critical to examine the correlations that exist between
SDGs and economic growth based on the post-2015 development goals and indicators.
The indicators of the SDGs play a crucial role in the growth and sustainability of an
economy. Therefore, this study seeks to examine the relationship between SDGs and
economic growth. To establish the correlation between SDGs and economic growth
using development goals and indicators, this study will concentrate on several
indicators namely inequality, transportation and communication, poverty,
environmental, and socio-economic aspects.
1.4. Purpose of the study
The purpose of this quantitative study is to examine the correlation between SDGs and
economic growth across nations based on the EKCs curve.
1.5. Research Questions
This study addressed the following research inquiries as follows.
1. What is the relationship between the SDGs and economic growth across nations
in terms of environmental, inequality, socio-economic, political, and
democratic dimensions?
2. What is the relationship between the implementation of SDGs andb the level
of income across nations?
1.6. Theoretical framework
The theoretical foundation of this study is built on Kuznets’ environmental

Kuznets curve (EKC) theory and Solow and Swan’s neoclassical theory of economic
growth. The theory of economic growth was developed on the basis of accumulating
resources in an economy as well as the resources are utilized by people to achieve
economic development.15 On the other hand, the environmental Kuznets curve (EKC)
15
Model, Harrod-Domar. "Selected Theories of Economic Growth."
6
hypothesizes that during the early stages of economic development, there is an
increased rate of the environmental degradation. Most of the researchers has assumed
that a nation’s economy need to concentrate on its development as well as the
elimination of any environmental issues that arise. 16
After a specific limit of economic growth has been realized, the co-movement
is expected to reverse gradually with continuous growth of the economy. Research has
indicated that for a nation to achieve a higher growth, it needs to utilize it natural
resources, which will unconsciously have an impact on the environment. The changes
are expected to represent the achievement of protracted and sustainable
development.The study anticipated that is true for the various indicators of SDGs such
as inequality, socio-economic asppects, political and democratic elements. The theory
ascertain the existence of an inverted U-shaped relationship between income and the
rate of environmental degradation as illustrated in Figure 1 below.
Figure 1: Relationship between environmental degration and per capita income as

illustrated by Usenata.17
From a theoretical perspective, the EKC has been used in various studies, which
has caused a considerable number of changes with different authors contributing to
16
Kaika, Dimitra, and Efthimios Zervas. "The Environmental Kuznets Curve (EKC) theory—Part
A: Concept, causes and the CO2 emissions case." Energy Policy 62 (2013): 1392-1402.
17
Usenata, Nnyeneime. "Environmental Kuznets Curve (EKC): A Review of Theoretical and
Empirical literature." (2018).
7
the existing literature. For example, Kaika and Efthimios 18 presented a detailed view
of the critical aspects based on the normal distribution of the income, environmental
degradation, pollution, among others. The results of their study indicateed the
original Kuznets theory did not provide solutions for inequality issues faced.
Galor and Tsiddon in Usenata19 discovered that there was decline in inequality
when income continued to increase using the EKCs. Studies have also examined
political and democratic liberties have been exogenously established suggesting
that various demographic elements affect the relationship between income,
inequality, environmental, and socio-economic aspects.
1.7. Nature of the Study
This study is a quantitative correlational study. The use of a qualitative

approach would have been deemed appropriate had the main purpose of the study
been to develop a new theory based on the empirical data or observations (grounded
theory).Quantitative approaches are preferred over the qualitative approaches since
this study intends to contribute to the trans-disciplinary approach of integrating
economics and EKC theory using empirical data. Additionally, this study will contribute
to redefine the EKC theory as far as the correlation between SDGs and economic
growth is concerned as well as how they are related in terms of the various indicators
of the SDG.
Since the scope of this study is limited to a sample of countries as opposed to a

single nation, a case study would be considered as not the most appropriate research
design. Case studies have concentrated on examining the extent to which the SDGs
have been achieved within a particular developing nation.20
The results from different nations regarding the correlation between several
indicators of SDGs and economic growth have been varied in terms of the outcomes
and interpretations. Therefore, it will be essential to address the reasons for the
18
Kaika, Dimitra, and Efthimios Zervas. "The environmental Kuznets curve (EKC) theory. Part B:
Critical issues." Energy Policy 62 (2013): 1403-1411.
19
Usenata, Nnyeneime. "Environmental Kuznets Curve (EKC): A Review of Theoretical and
Empirical literature." (2018).
20
Holm, Rochelle, Philip Wandschneider, Allan Felsot, and Golden Msilimba. "Achieving the
sustainable development goals: a case study of the complexity of water quality health risks in
Malawi." Journal of Health, Population and Nutrition 35, no. 1 (2016): 20.
8
differences in the relationships between cross-country fixed set of indicators and
economic growth.
Cross-sectional studies are most preferred to examine the relationship between

economic development and some of the indicators of SDGs. These cross-sectional
studies have been used to disclose the frequency of occurrence within a specific
phenomenon and establish if there are any changes. Some of the key cases in which
cross-sectional studies was employed include studies conducted by Mainali et al.21,
Ram 22 , and Pradhan et al.23
Although the correlational quantitative study design is favored over other

research designs, one of the major drawbacks is that it does not provide support to
determine the cause-effect relationships. This is despite the fact that the presence of
empirical data and its analysis permit an examination into the relationship that exist
between the independent and dependent variables. Independent variables in this
study are represented by several categories of the SDGs indicators namely
environmental, socio-economic, and physical indicators while economic growth
constitutes the dependent variable in which the associations between these variables
are expressed numerically.
1.8. Significance
This quantitative study argument the current body of literature by examining the
relationship between SDGs and economic growth limited to various indicators that
affect the quality of life. Additionally, this study offers a better comprehension of how
socio-economic growth has contributed to the existing inequalities, which are being
witnesses such as unequal distribution of resources among others that are related the
indicator-based SDGs.
Although a significant portion of the previous studies has examined SDGs as an

indicator-based tool that is related to the transdisciplinary approach of integrating
economics and EKC theory, more research is needed on the correlation between SDGs
21
Mainali, Brijesh, Jyrki Luukkanen, Semida Silveira, and Jari Kaivo-oja. "Evaluating Synergies and Trade-Offs among Sustainable
Development Goals (SDGs): Explorative Analyses of Development Paths in South Asia and Sub-Saharan Africa." Sustainability 10, no. 3
(2018): 815.
22
Ram, Rati. "Income and Multidimensional Poverty in Developing Countries: A Cross-Sectional
Perspective." Journal of Social Economics 3, no. 4 (2016): 198-202.
23
Pradhan, Prajal, Luís Costa, Diego Rybski, Wolfgang Lucht, and Jürgen P. Kropp. "A systematic study of sustainable development goal
(SDG) interactions." Earth's Future 5, no. 11 (2017): 1169-1179.
9
and economic growth from the perspective of a nation to understand how it
contributes to the uneven implementation of SDG indicators.24
The use of economics and Environmental Kuznets Curve (EKCs) theory will be
used to explain the relationship between economic development and the cross-nation
fixed elements representing the SDGs among nations. The EKC theory informs the
research on how fixed elements differ across nations. Additionally, the research will
examine indicators and goals of the SDGs and how they are related to the economic
growth of nations. This is attributed to various studies that have provided divergent
results and different interpretation on the association between economic development
and SDGs.
Moreover, this study aims to address why there are differences in the
implementations of SDGs despite the rising levels of income between different nations
to provide further insight into the correlation between SDGs and economic growth.
This could be used more efficiently in most nations and what guidelines could be
drawn for policymakers that support greater economic growth.
The rest of this research is structured as follows. Chapter 2 presents a review of

existing studies related to SDGs and economic development. The study will examine
the impact of economic growth on a range of indicators that can be used to evaluate
the quality of life. These aspects can be classified into three main categories namely
environmental, social, and physical indicators. Chapter 3 presents the methods and
procedures that will be utilized to examine secondary data gathered based on a wide
range of indicators. Chapter 4 provides a detailed account of the results obtained from
the analysis of the data. In the last Chapter, the study presents a critical discussion of
the correlation between SDGs and economic growth highlighting the role of each
indicator, the consequence of the outcomes, and some of the pronounced limitations
that were encountered.
24
Hedström, Helena. "Economic Growth in the UN Post-2015 Development Agenda: A Critical
Analysis." (2016).
10
Chapter 2. Literature Review
2.1. Introduction
The purpose of the section is to review scholarly studies in relation to the

impact of economic growth on life. The section focuses on reviewing past related
studies in order to come up with a meaningful section. Different scholarly studies will
be obtained from some academic databases including Google Scholar, Emerald,
EBSCOhost, ResearchGate, and ProQuest. An iterative search strategy was adopted to
ensure the completeness of the search for relevant studies.
2.2. Economic Growth and Environmental Impact
Das Neves et al. noted that the conflict between economic growth and the
environment has emerged to be complicated. The link between economic growth and
a sustainable ecosystem has been broadly explored. The authors examined whether
the Environmental Kuznets Curve (EKC) was sufficiently mirrored in the association
between economic growth and environmental damages. The theory is founded on the
assumption that economic growth results in environmental degradation. However, the
environmental quality tends to improve as economic growth becomes sustainable. This
means that, at some point, the correlation between the two variables is likely to
change. The results failed to prove the EKC hypothesis. The authors further concluded
that economic growth is not adequate to enhance the quality of the environment. 25
Similarly, Aşıcı explored the link between economic growth and sustainability
of the environment. The authors found that there is a positive connection between
increased income and pressure on the environment. For instance, an increase in
income tends to increase mineral extraction which, in turn, increases pressure on the
environment.26
Gumeni and colleagues postulated that EKC assumes that the quality of the
environment tends to worsen during the initial phases of economic development and
25
Ahmet Atıl Aşıcı. "Economic growth and its impact on environment: A panel
data analysis." Ecological indicators 24 (2013): 324-333.
26
Ahmet Atıl Aşıcı. "Economic growth and its impact on environment: A panel
data analysis." Ecological indicators 24 (2013): 324-333.
11
at some point, the environmental degradation starts to decline based on the economic
growth. Some economic activities might increase the pollution levels or the
degradation of the environment. The authors established that a positive correlation
between the economic growth and the emission of carbon dioxide. The effect of
economic growth on these emissions was found to be short term. This aligns with the
assumption of EKC.27 Similarly, Wolde confirmed the existence of EKC. The author
associated the decline in the adverse effect of the economic growth on the
environmental degradation on the possible introduction of environmental policies. 28
This results concurred with the findings of Soumyananda when he illustrated the
reduction of environmental degradation during the later stages as income increased
relative to the GDP. 29 Pradhan et al. also discovered that the synergy in the SDG
indicators was more significant as compared to the trade-offs across nation. 30
McCollum et al. discovered that the positive aspects outweighed the negative aspects
in the relationship between SDGs and economic development when they concentrated
on the various indicators in the energy sector. 31
2.3. Impact of Economic Growth on Inequality
According to Easterly, the quality of life across states is positively correlated

with per capita income. The study utilized a panel data of 81 indicators covering
between 1960 and 1990. The indicators covered seven (7) themes including political
instability and war, health, education, transport and communications, democracy, and
individual rights as well as inequality in gender and class. The global socioeconomic
growth was considered critical when compared with home-nation growth for several
quality-of-life indicators. There have been attempts to reject or confirm the Kuznets
27 Anita Gumeni, Klodiana Gorica, and Ornela Shalari. "Economic development and environmental quality
in Albania: An econometric approach." International Journal of Economics, Commerce and Management 3,
no. 3 (2015): 1-15.
28 Endeg Tekalegn Wolde. "Economic growth and environmental degradation in Ethiopia: An environmental
Kuznets curve analysis approach." Journal of Economics and International Finance 7, no. 4 (2015): 72-87.
29
Soumyananda, Dinda. “Environmental Kuznets Curve Hypothesis.” Ecological Economies 49, no. 4, pp
431-455, (2004): 15.
30
Pradhan, P., Costa, L., Rybski, D., Lucht, W., & Kropp, J. P. (2017), “A systematic study of
sustainable development goal (SDG) interactions,” Earth's Future, 5(11), 1169-1179.
31
McCollum, D. L., Echeverri, L. G., Busch, S., Pachauri, S., Parkinson, S., Rogelj, J., ... &
Riahi, K. (2018) “Connecting the sustainable development goals by their energy inter-
linkages,” Environmental Research Letters, 13(3), 033006.
12
curve when considering the relationship between inequality and per capita income. 32
Furthermore, Ganaie Aadil, and Bandi Kamaiah noted that Kuznets curve holds that
capitalist industrialization tends to contribute to increased inequality. The authors
also noted that inequality tends to be initially low as a nation experiences rapid
economic growth.33
A study by Niyimbanira aimed to estimate the effect of economic growth on

inequality as well as poverty across South Africa. The results revealed that the
economic growth tends to minimize poverty but not income inequality. This implies
that as a country experiences economic growth, only a section of individuals tends to
reap the benefits. As such, it is possible for a nation to record economic growth
without necessarily reducing income inequality. This is further an indication that
nations with higher levels of inequality are likely to experience prolonged poverty
levels.34
In their study, Wahiba and Malek postulated that Kuznets curve brought about
the debate on the relationship between the economic growth and inequality. Kuznets
curve linked the gross domestic product (GDP) per capita and the level of inequality
when it comes to income distribution. In line with this, unequal distribution of income
is considered to be endogenous to the overall development process. Initially, economic
growth increases inequality. Nevertheless, the trend tends to be reversed with time
and inequality stabilizes. It continues to decreases till it reaches the lowest levels
which can be witnessed among some of the industrialized economies. During the first
stages, some citizens are likely to accrue benefits when compared with other
members of the population. This results in a clear trend when it comes to the
inequality between the different classes. Following the Kuznets curve, different
mechanisms are likely to be reversed with time, and the rest of the population also
32 William Easterly. "Life during growth." Journal of economic growth 4, no. 3 (1999): 239-276.
33
Aadil Ganaie and Bandi Kamaiah. "Kuznets Inverted U Hypothesis of Income
Inequality: Looking Inside the Available Economic Literature." Journal of Poverty,
Investment and Development 9, no.1 (2015): 138-148.
34
Ferdinand Niyimbanira. "Analysis of the Impact of Economic Growth on Income
Inequality and Poverty in South Africa: The Case of Mpumalanga
Province." International Journal of Economics and Financial Issues 7, no. 4 (2017): 254-
261.
13
experiences economic growth gains. Nevertheless, unequal distribution of income is
high in developing nations when compared to developed states.35
2.4. Impact of Economic Growth on Health, Education, Transport and
Communications
Lange and Sebastian postulated that the economic growth serves as a key
determinant of the health of the members of the population. The authors used various
studies related to the impact of the economic development on health outcomes. The
study used data published from 2010 for the indicators of the population health. The
study established that there is a positive correlation between incomes or wealth and
several indicators of the population health. The primary indicators of health include
life expectancy during birth and mortality rates among others. The findings revealed
that the economic growth has the potential of influencing the consumption of health-
related commodities. Furthermore, the economic growth might enhance nutrition
through increased consumption of nutritious diets. In turn, well-nourished individuals
are likely to become resistant to bacterial diseases and also have high chances of
recovering from different illnesses. Additionally, increased income is considered to be
beneficial in that it can boost the intake of micronutrients and calories for better
health outcomes across developing nations.36
It is further likely that individuals would invest towards curative and

preventative health products due to higher incomes. Besides, the economic growth has
the potential of influencing the supply side of the health sector. It is further possible
to experience increased spending towards effective health services. Nevertheless, the
economic growth can as well be associated with adverse health outcomes of the
members of the population. A high income can result in the increased demand for
health risks products that pose health at risk, e.g., alcohol and smoking. Moreover, the
economic growth can result in a sedentary lifestyle as well as unhealthy eating habits.
This may lead to increase in chronic non-communicable diseases including diabetes
35
Nasfi Fkili Wahiba and Malek El Weriemmi. "The relationship between
economic growth and income inequality." International Journal of Economics and
Financial Issues 4, no. 1 (2014): 135-145
36
Simon Lange and Sebastian Vollmer. "The effect of economic development on
population health: a review of the empirical evidence." British Medical Bulletin 121, no.
1 (2017): 47-60.
14
and obesity.37 Furthermore, Thoa and colleagues asserted that the economic growth
tends to widen the gap between the poor and the rich in aspects such as healthcare.
The economic growth is, therefore, likely to cause health inequalities between high
and low-income earners. This suggests that members of the population enjoying the
benefits of economic growth are better off when it comes to health service
utilization.38
Easterly indicated that the link between income and education across nations
has been well-documented. The positive impact of economic growth on average
schooling years to the members of the population, secondary enrolment, and college
enrolment fails to hold under fixed effects.39 A study by Zivengwa et al. found that the
economic growth and education have a causality relationship. The economic growth
tends to increase a country’s per capita income which, in turn, reduces the levels of
poverty. Additionally, the economic growth is likely to significantly and positively
related with education. For instance, economic growth has the potential of improving
overall school enrolment. Further, a reverse causality revealed that the increased
educational enrolment tends to contribute to the economic growth of any given nation
significantly.40 According to Easterly, transport (railroads and roads) and
communication (telegrams, telephones, TVs, and radios) tend to go up considerably as
income increases. This serves as indicators of how the given government has mobilized
resources towards the development of communication and transport infrastructures.41
37 Ibid 5
38
Nguyen Thi Minh Thoa, Nguyen Xuan Thanh, Nguyen Thi Kim Chuc, and Lars
Lindholm. "The impact of economic growth on health care utilization: a longitudinal
study in rural Vietnam." International Journal for Equity in Health 12, no. 1 (2013): 19-
27.
39 Ibid 5
40
Tichaona Zivengwa, Fanuel Hazvina, Desmond Ndedzu, and Ithiel M. Mavesere.
"Investigating the causal relationship between education and economic growth in
Zimbabwe." Asian Journal of Humanities and Social Studies (ISSN: 2321-2799)1, no. 05
(2013):399-410.
41 Ibid 4
15
2.5. Impact of Economic Growth on Political Instability and War
According to Blanco and Robin, the income inequality brought about by

economic growth has a considerable impact on the political instability of any given
nation. The authors revealed that the increase in income inequality tends to raise the
likelihood of political instability. This is an indication that income disparity as a result
of the initial economic growth can threaten the stability of nations. Also, most of the
politically stable nations experience the least income inequality. Under income
inequality, individuals tend to find incentives to quit productive activities and join
protests as well as insurrections. A weak economic status further raises deprivation
which, in turn, tends to fuel political instability and war.42 Similarly, Knutsen found
that a low short-term economic growth has the potential of resulting in either
successful or attempted revolution. Higher levels of income due to economic growth
was found to reduce the likelihood of revolutions attempts across democratic nations
as opposed to dictatorial environments.43 Furthermore, Easterly found out that
political instability characterized by war, coups, and revolutions tends to improve with
income considerably.44
2.6. Impact of Economic Growth on Democracy and Individual Rights
The impact of economic growth on democracy is controversial. According to

Arif et al., there has a debate on the effect of economic growth on democracy and
individual rights. There are claims from some quarters that economic growth improves
democracy while other claims that it hinders democracy. Besides, some are of the
opinion that economic growth and democracy are unrelated. The authors further
found that economic growth has an indirect impact on democracy and individual
rights. For example, economic growth is associated with the attainment of a higher
level of education. This tends to increase the awareness of civil rights and liberties
hence improving the degree of democracy. Furthermore, economic growth influences
42
Luisa Blanco and Robin Grier. "Long live democracy: the determinants of
political instability in Latin America." The Journal of Development Studies 45, no. 1
(2009): 76-95.
43
Carl Henrik Knutsen. "Income growth and revolutions." Social Science
Quarterly 95, no. 4 (2014): 920-937.
44 Ibid 4
16
democracy through investment. This is linked to the fact that it encourages
investment hence providing more jobs to the members of the population, which result
in increased income. As income increases, the members of the population tend to
increase their demand such as improved individual rights and participation in political
matters. This has the potential of fostering resulting in the emergence of democratic
processes within the society.45 Further, a study by Landman argued that economic
growth predicts as well as explains the existence of democracy. Economic growth is
further considered to be a key underlying aspect when generating the wave of
democratic evolutions. The study also suggested that some economic growth variables
are related to democracy. This includes changing trends of employment and income
distribution. Nevertheless, the author cautioned that economic growth that enhances
citizen expectations could be founded on the false equivalence of economic freedom
as well as political freedom. The causal link that ignores political factors might
threaten the democratic consolidation of members of the population.46
2.7. Summary of Review
The literature review has revealed that economic growth has an impact on
different indicators of life. The primary indicators included the environment, health
and education, political stability and war, inequality and transport and
communications. The review revealed that the economic growth has both a negative
and positive effect on the varying indicators of life. The review confirmed the
existence of the Kuznets curve when it comes to the environment and inequality.
45
Babur Wasim Arif, Farrukh Nawaz Kayani, and Mr Umar Nawaz Kayani. "The
interrelationship between democracy and economic growth: Theories and
empirics." Pakistan Journal of Social Sciences (PJSS) 32, no. 1 (2012): 199-208.
46
Todd Landman. "Economic development and democracy: The view from Latin
America." Political Studies 47, no. 4 (1999): 607-626.
17
Chapter 3. Research Methodology
3.1. Introduction
This study examines the relationships between different dependent and

independent variables in developed and developing nations and its relation to the EKCs
theory. The research also endeavors to establish if there is a variation in the
relationship between SDGs and economic growth exist across nations. A quantitative
correlational research design was employed to examine the empirical data collected
from the World Bank.
Griggs et al. 47
discovered that each nation adopts a pragmatic methodology,
which entails the use of a vast set of policy measures customized to their peculiar
conditions. In this case, the main challenges that face economic development need to
be identified solely per nation. Additionally, various policies need to be formulated
while taking into consideration the varying social, economic, environmental and
political aspects. Therefore, this research will examine the relationship between SDGs
and economic growth in developing and developed nations during the period 1990 -
2009.
This section of the study presents the methods and procedures that are used in
conducting this quantitative correlational study. Other sections of the chapter will
address the population, sample size, materials and instruments utilized, the
operational definition of variables, and data collection, processing, and analysis. The
chapter will then finish with assumptions, limitations, delimitations, and ethical
assurances regarding the proposed study and finally will conclude with a summary.
3.2. Hypotheses proposition
The following research inquiries will form the focus of this study with the aim
of examining the correlation between SDGs and economic growth in developing
countries. They include: (1) How the indicators of the SDGs are related to economic
47
Griggs, David, Mark Stafford-Smith, Owen Gaffney, Johan Rockström, Marcus C. Öhman, Priya
Shyamsundar, Will Steffen, Gisbert Glaser, Norichika Kanie, and Ian Noble. "Policy: Sustainable
development goals for people and planet." Nature 495, no. 7441 (2013): 305.
18
growth and (2) Why there is an uneven implementation of indicators and goals of the
SDGs despite the increased level of income?
The study will be addressing two research questions and hypotheses as stated
above using quantitative approaches. There is an element of causality in this case, and
this is to indicate which factors affect economic growth. The implementation of the
SDGs is closely associated with the economic growth of the nations. Therefore, the
researcher’s initial thinking is that the leading indicators of the SDGs and economic
growth. The proposition constitutes the formulation of relevant null hypotheses. In
this case, the null hypotheses are presented as follows.
HO1: There is a negative correlation between SDGs and economic growth
This study holds that there is a negative relationship between the indicators of
SDGs and economic growth. Among the selected nations, the study intends to examine
the relationship that exists between SDGs and economic growth by relying on the
cross-fixed elements.
Various studies have examined the relationship between SDGs and economic
growth among developing nations. Most of the studies have provided divergent results.
48
For instance, Pradhan et al. discovered that the synergy was more significant than
the trade-offs using a correlation analysis on two sets of data that permitted the
identification of global trends. One possible explanation was related to the approach
in which the interaction of the SDG indicators was effective. McCollum et al.
recommended the need for more precise methods that can be used to interpret the
SDGs findings when they discovered that the positive aspects outweighed the negative
aspects in the relationship between SDGs and economic development.49 These
approaches are also expected to assist in the reduction of negative aspects which
affect economic development and sustainability.
48
Pradhan, P., Costa, L., Rybski, D., Lucht, W., & Kropp, J. P. (2017), “A systematic study of
sustainable development goal (SDG) interactions,” Earth's Future, 5(11), 1169-1179.
49
McCollum, D. L., Echeverri, L. G., Busch, S., Pachauri, S., Parkinson, S., Rogelj, J., ... &
Riahi, K. (2018) “Connecting the sustainable development goals by their energy inter-
19
Based on the null hypothesis, the data being collected is meant to show that
there is no relationship SDGs and economic growth. If there is enough data to show
that such a relationship is lacking, the null hypothesis will be accepted. It will be
rejected if the opposite is the case.
Since the test involves more than two variables, and because it is likely to test
their mean effects, the hypothesis being proposed will be tested using the correlation
tests to evaluate the relationship of these indicators with the ability to achieve higher
economic development.
H02: There is a negative correlation between economic growth and environmental

aspects across nations.
The study holds the position that an increase in the economic growth of a
nation can lead to the reduction in environmental degradation. This implies that the
deterioration of the environment tends to reduce with an increase in economic
development. From the review of existing, that was conducted, it was noted that most
of the scholars had presented divergent views regarding the association between
economic growth and the environment. Soumyananda submitted a methodological
review that indicated a reduction in environmental degradation during the later stages
when the income level increased in relative to the GDP. 50
Across nations, David has provided an approach which can be used to examine
the methodological differences arising regarding the relationship between economic
51
growth and environmental aspects. He suggested that developing nations rely on
standard measures obtained from developed countries to deal with environmental
aspects in a faster and effective way. The outcome of the study was an efficient
model that can aid in resolving issues related to the association between economic
development and the environment.
Based on the null hypothesis, the data being collected is meant to examine if
an increase in the per capita income leads to a reduction in the environmental
degradation in the selected nations. If there is enough data to show that such a
50
Soumyananda, Dinda. “Environmental Kuznets Curve Hypothesis.” Ecological Economies 49,
no. 4, pp 431-455, (2004): 15.
51
David, I Stern. “The Rise and Fall of the Environmental Kuznets Curve.” World Development 32, no. 8,
pp 1419-1439, (2004).
20
relationship is lacking, the null hypothesis will be accepted. It will be rejected if the
opposite is the case. Since the test involves more than two variables, and because it is
likely to test their mean effects, the hypothesis being proposed will be examined
through Pearson’s correlation.
H03: There is a negative correlation between economic growth and inequality across
nations
The research holds that there is a negative relationship between inequality and
economic growth across countries. The presence of disparities across nations has been
attributed to existing income differences in the global populace to achieve the SDG
goals.
Numerous works that have employed different methods have been presented in
an attempt to re-examine the Kuznets curve concerning inequality and economic
growth. These methodological differences have led to divergent results. For instance,
Heng and Liutang demonstrated that the Kuznets curve holds in the association
between income and inequality concerning public spending.52 On the contrary, Ganaie
and Bandi held the view that capitalist industrialization contributes quantitatively to
an increase of inequalities based on the Kuznets curve.53 Josephsen explored
methodological aspects which are related to the association between numerous SDG
54
indicators and targets. This was also meant to enhance the understanding of the
relationship between the distribution of resources and economic growth across
nations. The findings from these studies have relied on the use of public or
government expenditure to determine if there is a relationship between income level
and inequality. The implementation of SDGs indicates there is a high probability of
causing a spark in economic growth which can reduce disparities. Therefore, there is a
need to establish if there is a relationship between income level and inequality while
considering other factors apart from public spending.
52
Heng,Y. and Liutang, G. "Income inequality, and economic growth- the Kuznets curve revisited."
Frontiers of Economics in China, 1, no. 2, pp 196-206, (June 2006).
53
Aadil Ganaie and Bandi Kamaiah, Kuznets Inverted U Hypothesis of Income
Inequality, pp. 139.
54
Josephsen, Lars. "Approaches to the implementation of the Sustainable Development Goals–
some considerations on the theoretical underpinnings of the 2030 Agenda. Economics
Discussion Papers, No 2017-60." Kiel Institute for the World Economy. http://www. economics-
ejournal. org/economics/discussionpapers/2017-60 Page 2 (2017).
21
an increase in per capita income is expected to lead to a decrease in inequality among
developing and developed nations. If there is enough data to show that such a
opposite is the case. Since the test is more likely to test their mean effects, the
assumption being proposed will be tested using Pearson's correlation.
HO4: There is a negative correlation between economic growth and socio-economic

aspects across nations.
The research holds that there is a negative relationship between economic

growth and various socio-economic aspects such as education, health and transport,
and communication. Different studies have presented methodological differences
regarding the relationship between economic growth and these socio-economic
aspects to achieve the Kuznets curve. Most of these studies have provided varying
results.
Lange and Sebastian discovered that there is a high probability of reducing

health problems due to increased income through inferences such as good eating
habits, healthy foods, and other health-related commodities. 55 This is despite the fact
that access to health care can lead to increased inequalities among different social
classes. Similarly, Zahra and Zafer discovered that the Kuznets curve shifted based on
the methodological differences and variables suggesting that there was no specific
health Kuznets curve.56 The presence of effective health policies that assume the
adverse effects of pollution across nations could support equitable health care.
Easterly discovered various methodological differences that affected the

relationship between economic growth and various socio-economic aspects over time.
57
These socio-economic aspects included school enrolment, transportation, and
communication, welfare among others. This is despite the fact that there was a
positive relationship between economic growth and education and transport and
55
Simon Lange and Sebastian Vollmer. "The effect of economic development on
population health: a review of the empirical evidence." British Medical Bulletin 121, no.
1 (2017): 47-60.
56
Zahra, F. and Zafer, C. “Is it Possible to Describe A Kuznets Curve for Health Outcomes?An Empirical
Investigation,” Panoeconomicus 65, no.2, pp 227 - 238, (2018).
57 Ibid 5
22
communication. On the contrary, Brant found no methodological differences between
income and transport and communication through the Kuznets curve.58
economic growth does not lead to a reduction in socio-economic aspects among the
selected nations. If there is enough data to show that such a relationship is lacking,
the null hypothesis will be accepted. It will be rejected if the opposite is the case.
Since the test is more likely to test their mean effects, the hypothesis being proposed
will be tested using Pearson's correlation.
HO5: There is a negative correlation between economic growth and political stability
across nations.
The research holds the view that there is a negative relationship between
economic growth and political stability. This is based on the different financial
framework that is employed across nations. Various studies have presented
methodological differences regarding the relationship between economic growth and
political instability in line with the Kuznets curve. Most of the studies have also
concentrated in developing or less-developed nations that have mostly indicated a
positive association between economic growth and political instability from a national
perspective. However, Henry found not methodological differences between economic
growth and political instability across nations that did not conform to the Kuznets
curve. 59 Similarly, Galianto and Galianto held the view that the political environment
contributed significantly to an increase in political instability and wars based on the
Kuznets curve.60
Based on the null hypothesis, the outcome is expected to explain that an

increase in the level of income is expected to increased political instability and the
presence of wars in the selected nations. If there is enough data to show that such a
58
Brant Liddle. "Urban transport Pollution: Revisiting the Environmental Kuznets Curve," International
Journal for Sustainable Transportation, 9, pp 502 - 508, (2015).
59
Henry Tim, "An economic or political Kuznets curve?" Political Choice 134, (2008):
367-389.
60
Galianto, G. and Galianto, S. “The Effects of Corruption Control and Political
Stability on the Environmental Kuznets Curve of Deforestation-Induced Carbon Dioxide
Emissions,” Working Papers 9, (2010).
23
opposite is the case. Since the test is more likely to test their mean effects, the
hypothesis being proposed will be tested using Pearson's correlation.
HO6: There is a negative correlation between economic growth and democracy across
nations.
The study holds that there is a negative relationship between economic growth
and democracy across nations. This is based on different ideologies and systems that
exist across countries and support the freedom of an individual. Previous studies have
noted that there are methodological differences that exist in the relationship between
economic growth and democracy and individual rights based on the Kuznets curve.
Most of these studies have perceived these methodological differences regardinfg a
favorable environment that can support growth. Clas and Joakim endorsed the notion
that increased democracy significantly impacts on the economy.61 They suggested that
an increase in the income level is more likely to enhance the demand for better
services as well as public participation in most political activities. Similarly, Landman
held the view that economic growth can anticipate the existing democracy.62
an increase in the level of income is supposed to reduce the existing democracy in the
selected nations. If there is enough data to show that such a relationship is lacking,
the null hypothesis will be accepted. It will be rejected if the opposite is the case.
Since the test is more likely to test their mean effects, the hypothesis being proposed
will be tested using Pearson's correlation.
3.3. Research Method and Design
In this study, a quantitative approach is preferred over qualitative approach

since this study intends to contribute to the relationship between the realms of
economics and the EKC theory using empirical data. This is as far as the correlation
between SDGs, and economic growth is concerned, and why there is an uneven
distribution of resources despite the increase in income level.
61
Clas, E. and Joakim, P. “Democracy, income and pollution,” Environ Econ Policy Stud, 2013.
62
Todd Landman, Economic development and democracy, pp 608.
24
In chapter 1, the Nature of the Study, it was outlined why correlational
quantitative study design is favored over other research designs. Although the
significant drawback of this applied design is that cause-effect relationships cannot be
established, it is preferred because empirical data and the analysis of such data allows
for the investigation of relationships between independent and dependent variables.
Independent variables in this study will mainly consist of SDGs indicators categorized
into communication and transportation, environment, inequality, and socio-economic
aspects while economic growth constitutes the dependent variable. The relationship
between these two categories of variables was expressed numerically.
Panel data analysis will be used to analyze the data regarding the relationship
between SDGs and economic growth. Panel data analysis is chosen since it can model
the relationship between cross-sectional data of different variables over time.
Moreover, panel data analysis permits the identification of relationships between a
large number of indicators (independent variables) and the dependent variable spread
over a long period. The general formula in panel data analysis is:
𝑦𝑖𝑡 = ∝𝑜 + ∝1 ∗ 𝑋1𝑖,𝑡 + ∝2 ∗ 𝑋2𝑖,𝑡 + … +∝𝑛 ∗ 𝑋𝑛𝑖,𝑡 + 𝜇𝑖𝑡 equation (1)
Where i represents each cross-fixed nation factors, t is time, y is the dependent

variable (economic growth), x1, 2...n are independent variables, 0, 1, 2...n are constants,
and µ represents the statistical error.
In panel data analysis, data can be processed using different estimations such as
ordinary least square and weighted least squares. These two approaches are
considered as part of the linear model of evaluations. A weakness associated with
these models is linked with the endogeneity of the results. Therefore, dynamic panel
models are preferred to establish the association between the variables. This
estimation method is suitable for data with large variables that change over a specific
timeframe, for example, five years. Roodman pointed out that panel data models can
support lagged dependent variables including autocorrelation between cross-national
fixed elements.63
Study Population.
63
Roodman, David. "Estimating fully observed recursive mixed-process models with cmp."
(2009).
25
The population of this study consist of both developing and developed nations
around the globe. In this case, the developing countries include nations that have an
aggregate national income of not more than US$ 12,746 while developed nations are
higher than this.64 However, studies that have incorporated the entire population have
not provided significant relationships between variables but rather illustrated a
positive association between SDGs and economic growth.65 Additionally, recent studies
have focused on less-developed nations that are always faced with numerous political,
socio-economic and environmental aspects. Therefore, this study intends to
concentrate on ten nations that include five developed and five developing nations.
These ten countries are the samples size.
3.4. Sample
The sample size of the dataset was not established using probabilistic methods
to provide an appropriate level of significance for the selected responses. This was
attributed to the fact that the nations were chosen based on their geographic
location, economic status, and current political situation.
3.5. Materials/Instruments
In this quantitative correlational research, the correlation between SDGs and

economic growth in developing nations is investigated. For this purpose, the study will
focus on selected categories of indicators. Data that will be used in this study will be
66
gathered from the World Development Indicator (WDI) databases , which contains
statistical data (base for evaluating SDGs). The data from this database are freely
available through the open access API.
The data will be gathered from the World Bank through joint efforts among
numerous partners whose details are listed in World Bank.67 Moreover, statistical
offices from approximately 200 nations and other key institutions have a chance of
64
World Bank Group. World development indicators 2014. World Bank Publications, 2014.
65
Patole, Manohar. "Localization of SDGs through Disaggregation of KPIs." Economies 6, no. 1
(2018): 15.
66
67
26
contributing data as well. After gathering the data from the WDI databases, the data
will be cleaned to reduce the effects of inappropriate data that may affect the
outcomes. Additionally, the data was closely examined through the support of the
staff working at the World Bank's networks to improve on the consistency of the data.
Additionally, aid was provided from external entities that were listed in detail
in the World Bank.68 Data obtained from the UNCTAD are solicited from numerous
national and worldwide sources that are cautiously compiled, validated, and
processed.
3.6. Operational Definition of Variables
To identify possible relationships between SDGs and economic growth as a

function of inequality, transportation, and communication, poverty, environmental,
and socio-economic, political stability indicators. The analysis of these data employs
an empirical model that follows the practical principles of panel data analysis. The
operational variables and their sources for the applied empirical model are
summarized in Table 1 below.
Based on the arguments presented by Easterly, the following proposed

operational variables were selected as illustrated in Table 1 below. A discussion on the
selected variables in the models needs to consider its meaning. This is associated with
SDGs in diverse ways. Firstly, SDGs is evaluated regarding the indicators which are
related to meeting the needs of the current populace. SDGs could also be represented
regarding the level of income varies from one nation to another that includes the
extent of prosperity in all sphere as opposed to the well-known model of economic
growth that is mostly evaluated using the gross domestic product (GDP). In this study,
the focus is placed on how these factors contribute to the relationship between SDGs
and economic growth. This emphasis is placed on the level of SDGs based on the
impact of SDG on economic growth of a nation. The factors used in determining the
SDGs indicators offer a measure in which the additional revenue is considered as part
of the economic growth.
The indicators of the SDGs in the empirical model include index representing
environmental, poverty, inequality, health, education, social, income, transport,
68
27
communication, and freedom. The freedom index is logged to capture the political
stability and wars in the selected nations.
Das Neves et al. clearly emphasized the role of the environmental aspect
towards achieving SDGS.69 They emphasized the need for achieving the Environmental
Kuznets Curve (EKC) in the relationship between economic growth and the resulting
damages to the environment. Inequality index was perceived regarding the distribution
of resources, the aspect of gender among others. These were compared against the
per capita income received. The study also considered the relationship between
inequality and per capita income as indicated in the Kuznets curve.
Poverty was examined regarding the amount of money used by an individual per
day that was less than 2 USD. This was compared to the gross domestic product (GDP)
to determine the extent to which the nations have managed to improve their
economic development. Other socio-economic factors such as health, education,
social, income, transport, communication had different means of measuring them.
The freedom index is considered an institutional element in the model. This

was developed by the Freedom House as a way of evaluating the freedom concerning
political stability and wars in the selected nations. The dataset rates the freedom
index based on a scale of 1 to 6 in which 1 represents the highest and 6 represents the
lowest freedom index.
69
Almeida das Neves, Economic growth and environmental impacts, pp. 121.
28
Table 1. Operational definitions of variables.
Operational Description Level of Variation of

variable measurement variable
Inequality Resource distribution index per cluster (%) interval 1-100 %

transferred into
1 (low) to 5
(high)
Poverty This is based on the headcount proportion in the interval 1-100 %

populace based on nation-specific poverty threshold.
(%)
Income Growth in the real gross domestic product (GDP) per interval 1-100 %
capita (%)
Health The percentage of access to health care services and interval 1-100 %
facilities (%) transferred to transferred into
ordinal 1 (low) to 5
(high)
School School enrollment proportion of both primary and interval 1-100 %

enrollment secondary (%) transferred to transferred into
ordinal 1 (low) to 5
(high)
Communication Percent of the commercial services using computer- interval 1-100 %

based communications (%).
29
Transport Percent of Transport services against the commercial interval 1-100 %
service exports (%).
Social The inclusion of various policies to support social and interval (1=low to
equitable distribution 6=high)
Environmental The rating of the environmental regulatory Interval (1=low to

6=high)
Freedom index Index evaluating political stability and war Ordinal (1=low to
6=high)
30
3.7. Data Collection, Processing, and Analysis
This study will follow a correlational research design in which the

SDGs will rely on some indicators that are classified into inequality,
transportation, and communication, poverty, environmental, socio-
economic, and economic growth. The present research adopts this
approach by examining the correlation between SDGs and economic growth
in 10 developing and developed nations during the period starting from
1981 to 2016. Cross-nation fixed elements for an average of five years will
be considered in the analysis of data.
Secondary data will be sourced from the World Bank's World

Development Indicators (WDI) online database and UNCTAD. The economic
growth will be represented by per capita income of the selected nations.
The data used in this study are collected from 1981 to 2016 for ten
developing include inequality, transportation, and communication,
poverty, environmental, and socio-economic indicators (see also Table 1
above ). Data collected from the World Bank are further described in Table
A1 of the Appendix regarding source, aggregation method, statistical
concept and methodology, and limitations and expectations.
3.8. Assumptions
The Kuznets curve assumes that an increase in economic growth

tends to support a reduction of the aspects affecting SDG indicators. The
assumption is that there is there are variations in the achievements of SDG
indicators based on cross-national perspective. Some have argued that
these variations have not been adequately accounted for especially from
cross-fixed elements. Additionally, the differences have not been
examined with increased economic growth. This implies that the outcome
of this is expected to assist the economy afloat on the long-term basis.
31
Various models suggest that SDGs can promote growth in the long run,
primarily through the reduction of multiple aspects affecting the SDG
indicators. The assumption is that this is possible through an increase in
the income levels over a long period.
The research does also assume that the alternative organizational

arrangements, as well as managerial practices, which are introduced by
the SDGs, facilitate economic growth. It is by this argument that
inequalities, poverty, democracy, political stability, and socio-economic
aspects have been selected as independent variables; while economic
growth becomes the dependent variable.
Reforms initiated by the United Nations to introduce the SDGs have

improved the economies of most nations. There has been improved access
to services by the global populace as well as an increased net income.
Classical economists have anchored their forecasts on the argument that
many developing nations are naturally abundant, and this is mainly with
the resources which need to be refined to facilitate growth and
development. Even though the citizens have low income, there is still a
relatively high desire to increase their earnings. The resultant scenario is
that the present and future generation can meet their needs without
adversely affecting any particular group. Indeed, some nations have
concluded that encouraging an increased implementation of SDG indicators
could solve this.
3.9. Limitations
There are various constraints and bias that is associated with every
single dataset collected. Sometimes, there is an inadequate number of
data representation from the specific nations being examined. The current
phenomenon leads to a scenario where there is a need to adopt some
assumptions. Furthermore, data collected is limited to the period 1981 –
2016 during which some nations concentrated could not provide reliable
32
data. Therefore, the study focuses on ten nations to gather data namely
Kenya, Ethiopia, Japan, Iraq, Germany, Italy, Australia, Mexico, Syria, and
Malaysia.
It is essential to appreciate that in most cases, related primary data

may not be accessible. At least it is not always possible to get all the data
one needs to establish relationships. Additionally, it is quite difficult to
comprehend the context of the phenomena in question, and this is
probably the reason why quantitative methodology is much more
advantageous than just using the qualitative technique. In any case, not
every piece (or a set of) of data tends to be robust enough to facilitate the
explanation of the most complex issues.
Many factors influence the implementation of SDGs to eradicate or

reduce some of the aspects encountered in the nation-specific situation.
Simply because there is an increase in the level of income received over
time, this does not necessarily translate into improved economic growth
and the implementation of SDGs indicators. It is valuable to appreciate this
since some of the developing nations with significantly low economic
growth have been associated with higher level of implementing SDG
indicators as compared to the developed nations with stable economic
growth. There are a couple of sensitive aspects that are difficult to
capture through structured data instruments such as level of income and
inequality, yet they are crucial in the current phenomenon. In some
instances, there are fewer contextual factors that can help with the
interpretation of the results. The correlation that is produced does also
mask some of the underlying realities and causes.
3.10. Delimitations
This study will examine the correlation between the economic

growth and the indicators of SDGs which are categorized into various
groups namely inequality, transportation, and communication, poverty,
33
environmental, and socio-economic indicators. In this case, the study will
concentrate on cross-fixed elements in approximately ten nations to
determine the correlation between the key variables. The study will be
limited to ten nations which include Kenya, Ethiopia, Japan, Iraq,
Germany, Italy, Australia, Mexico, Syria, and Malaysia.
The issue of reducing bias is practical when a quantitative research

study is performed. One of the best approaches to ensuring that the data is
conclusive is to provide the researcher with both the government
policymakers and the management of the multinational organizations as
much as possible. There are a couple of instances where adequate data is
available, even from the World Bank. In case there is not any, or in cases
where the data available is inadequate, it would be essential to take time
to interact with the relevant authorities to fill the gaps.
At times, it tends to be easy to generalize the findings. This is

mainly in situations where the selection process happens to be
appropriately designed as well as where the samples are representative of
the population in question. Therefore, even if there is a specific selection
criterion, there will be decisive attempts to make the sample as
representative as possible; but this will have to be explicitly explained to
ensure that the findings are not misleading. With appropriate planning,
data may end up being not only precise, reliable and consistent but also
relatively easy to analyze.
Eliminating errors during the evaluation of the hypothesis and

research question aids in getting reliable and relevant data. The
determination of statistical significance will be in a manner that no critical
information will be lost and that standardized approaches will allow
replication in a variety of areas. Comparability of findings will be
emphasized since, in any case, these are ten different countries being
investigated, it will be essential to establish if there are variations in these
nations.
34
3.11. Ethical issues
There are various ethical issues which face the current study. These
ethical issues can be categorized into several groups such as confidentiality
and privacy, reduction of bias, and the role of the researcher. The ethical
aspects are experienced as earlier as during the formulation of the
research hypothesis, selection of the appropriate methodology, data
collection, analysis and presentation of the results obtained.
The role of the researcher is influenced by the biases and the

ability to uphold the privacy and confidentiality of the data. Preferences
of the data are affected by the ideological position that is taken by the
researcher and the socio-economical and political context in which the
study is performed. This could be attributed to pressure from various
agencies, trends, and situations which the cross-fixed indicators affected
the nations. In this case, quantitative research approaches were meant to
evaluate the proposed hypotheses as well as determine causality concept.
This forms the basis of comprehending the degree of the influence.
Additionally, this is expected to aid the researcher in coming up with an
appropriate research design, which can reduce autocorrelation and other
modeling errors.
Data collection was accomplished through the use of appropriate

instruments. Additionally, the sample size was adopted to address the
specific situation in the selected nations. The researcher endeavors not to
delude them while undertaking this study, even if an issue is an apparent
conventional knowledge. This is a study based on statistical data, and
conclusions are derived from those analyses.
Since there are specific statistical tools to be used, such as SPSS,

the researcher has sought to acquire adequate technical skills, especially
those that are analytical. Indeed, efforts are underway to learn the
appropriate designs of the various scientific experiments. The goal is to
35
ensure that during the data analysis, there will be a healthy skepticism,
and there will also be a sense of understanding of the limitations of the
associated studies. With these measures in place, there is a clear
indication that the results will be reliable and valid.
3.12. Summary
This study will investigate the relationship between SDGs and

economic growth as a function of inequality, transportation, and
communication, poverty, environmental, and socio-economic, political
stability indicators in ten developed and developing nations. The
quantitative correlational research will be used to investigate the cross-
sectional developments within the selected developing nations. As a
statistical tool, panel data analysis will be applied to the archival data
collected from the World Bank's World Development Indicators (WDI) online
database during the period 1990-2016.
Chapter 4. Results
4.1. Introduction
This chapter provides the summary of the secondary data collected

from the World Bank's World Development Indicators and analysis of the
results obtained using statistical tools. This was based on the intent of the
study to examine the relation between SDGs and economic growth. The To
be able to determine the appropriate solutions for the research inquiries,
the study categorized the SDG indicators into several groups namely
inequality, transportation, and communication, poverty, environmental,
and socio-economic, political stability indicators. Some of the indicators
were based on a Likert scale ranging from 1 (low) to 6 (high) such as
inequality, health, education, social, environmental, and freedom index.
36
On the other hand, continuous variables formed part of the data collected
which were expressed in percent forms such as poverty, income, and
transport. Further characteristics, summary statistics and relativity
analysis of the indicators are presented in the demographic features as
follows.
4.2. Characteristics of the variables
4.2.1. Socio-economic aspects
In the socio-economic aspects, the study examined three aspects

namely school enrolment, transportation, communication, and health.
Each of these aspects significantly contributed to the achievement of the
SDGs. In school enrollment, the study relied on the primary education and
gender difference index to examine how school enrollment had influenced
the achievement of SDGs. The results are presented in Table 2 below.
Table 2: Summary statistics of school enrollment for both genders
N Mean Std. Deviation
Algeria 27 .8759 .17753

Australia 27 .9315 .26867
Bolivia 27 .8967 .25901
Ethiopia 27 .6678 .26991
Germany 27 .8856 .31910
Iraq 27 .2822 .40678
Italy 27 .9215 .26589
Japan 27 .9259 .26688
Kenya 27 .7593 .41384
Malaysia 27 .9267 .26716
Mexico 27 .9081 .26193
Syria 27 .8356 .30212
Valid N (listwise) 27
37
The data revealed that developed nations had achieved a higher level
of success in terms of school enrollment for both boys and girls as
compared to the undeveloped and developing nations. For instance, Italy
(.9215 ± .26589), Japan (.9259 ±.26688), Australia(.9267±.26867), Malaysia
(.9267± .26716), and Mexico (.9081 ± .26193) had a higher mean score as
compared to Iraq(.2822 ±.40678), Kenya(.7593 ± .41384) and
Ethiopia(.6678 ±.26991). Most of the selected nations with higher mean
score suggested that they formed part of the developed nations while the
ones with a lower mean score were developing, undeveloped or were raved
with constant conflicts.
This was attributed to a few instances where there were no data

collected. In this case, the study compared the primary school enrollment
rate in two genders namely males and females among the selected nations.
The results indicated that there were no significant enrollment differences
in the two genders in each particular nation. However, variations were
noted across nations where some had a higher enrollment while others
were relatively low.
The study also examined the health and welfare. In this case, the
study relied on the percentage of access to health care services and
facilities such ass clean water and sanitation. A summary of the results of
the ten selected developed and developing nations are presented in Table
3 below.
Table 3: Summary statistics on the health care services in the selected

nations
Algeria 27 81.0963 16.37621

Australia 27 96.2963 19.24501
Bolivia 27 38.4000 10.19442
Ethiopia 27 12.2926 8.93945
Germany 27 95.5259 19.09105
38
Iraq 27 72.2074 21.39182
Italy 27 95.8148 19.14878
Japan 27 96.2963 19.24501
Kenya 27 26.4370 5.55380
Malaysia 27 88.5667 17.97997
Mexico 27 73.6000 15.81917
Syria 27 86.7778 17.81329
The data revealed that Australia (96.2963 ±19.24501) and

Japan(96.2963 ±19.24501) had the highest mean score followed by
Germany(95.5259 ± 19.09105) and Italy(95.8148 ±19.14878). On the other
hand, Ethiopia (12.2926 ± 8.93945 )and Kenya (26.4370 ± 5.55380) had
the lowest mean scores. This suggests that developed nations such as
Australia, Japan, Germany, and Italy have established a robust health
framework that can support its current populace as compared to the
developing nations. This could be attributed to the fact that most of the
economic growth in developing nations is focused on developing the
infrastructure and very little is set aside for healthcare. This implies that
the level of achieving SDG regarding health is not readily achievable.
In the transport and communication, the study relied on the net

factors of the two elements obtained from the WDI database namely a
percentage of the commercial services in terms of computer and
communications, and transportation services. The results are presented in
Table 4 below.
Table 4: Summary statistics of the net transportation and communication

services offered by the selected nations.
Algeria 36 39.4630 41.79248
39
Australia 36 25.4780 8.86834
Bolivia 36 23.9332 13.49773
Ethiopia 36 19.4349 10.96925
Germany 36 41.5106 5.33388
Iraq 36 4.1020 9.09856
Italy 36 31.4161 27.06595
Japan 36 9.6841 5.98989
Kenya 36 12.9356 9.81713
Malaysia 36 20.1208 16.66946
Mexico 36 21.0422 6.83854
Syria 0
The data revealed that Germany had the highest mean score of
41.5106 ± 5.33388 followed by Algeria (39.4630 ± 41.79248) and Australia
(25.4780 ± 8.86834). On the other hand, Iraq (4.1020 ± 9.09856) offered
the least transportation and communication services followed by Japan
(9.6841 ± 5.98989). This suggests that some of the developed nations have
a better infrastructure. Despite this, some of the developed nations are
still faced with problems, which affect communication and transportation
such as earthquakes, floods among others. A vital example of a nation that
faces these problems in Japan, which had a lower mean score of 9.6841 ±
5.98989. A graphical representation of transportation and communication
services indicated that there had been continuous improvement in
Germany, Afghanistan, Malaysia, and Australia as shown in Figure 1 below.
Developing and undeveloped nations indicated a slight improvement
suggesting that other elements could be attributed to low communication
and transportation services such as a high level of corruption.
40
Figure 1: Relationship between communication and transport from 1981 to
2016
4.2.2. Environmental aspects
There were several aspects which represented the environmental

aspects of the SDGs. These included the CO 2 emissions, forest cover, the
existing water resources, air pollution among others. In this case, the
research looked at the net effect of these environmental factors that
contributed significantly to the achievement of the SDGs. The results are
presented in Table 5 below.
Table 5: Summary statistics of the environment factors of the selected

nations.
Algeria 27 .3128 .14071

Australia 27 .5480 .24817
Bolivia 27 .3113 .12356
Ethiopia 27 .0969 .04250
Germany 27 .2992 .15972
Iraq 27 .4250 .26216
41
Italy 27 .2493 .11054
Japan 27 .3044 .12576
Kenya 27 .1295 .05544
Malaysia 27 .3789 .14902
Mexico 27 .3312 .15416
Syria 0
The data revealed that Australia (.5480 ± .24817 ) had the highest
mean score followed by Iraq (.4250 ± .26216)and Malaysia (.3789 ± .14902).
The least mean score was obtained by Ethiopia (.0969 ± .04250) and Kenya
(.1295 ± .05544 ). This variation between these nations suggests some
nations have robust environment framework that helps to resolve most of
the environmental aspects. Additionally, they are keen on environmental
aspects and its ability to meet the present populace’s needs while taking
the concerns of the future generation. It should be noted that the political
situation of any nation does not severely affect the environment except
the various agencies in-charge.
4.2.3. Inequality
Inequality can be perceived in many forms. These include resource

distribution across the nation such as jobs, forests, foods among others and
gender-based representation in leadership roles. Based on availability, the
study relied on gender-based representation in the parliamentary position
since no relevant data on resource distribution was provided in the dataset
collected from WDI. A summary of the statistics of the dataset
representing inequality is provided in Table 6 below.
Table 6: Summary statistics of the existing inequality in the selected

nations.
Algeria 27 9.1333 11.25488

Australia 27 17.3852 11.41563
42
Bolivia 27 16.6926 16.04127
Ethiopia 27 13.7074 13.13659
Germany 27 23.9667 14.65120
Iraq 27 12.3667 11.55142
Italy 27 13.9889 10.27051
Japan 27 6.1111 3.97118
Kenya 27 6.8148 6.33851
Malaysia 27 7.1370 4.45992
Mexico 27 19.4074 13.31563
Syria 27 8.9333 4.96883
The data revealed that Germany (23.9667 ± 14.65120) had the highest
mean score followed by Mexico (19.4074 ± 13.31563) and Australia
(17.3852 ± 11.41563). The least mean score was obtained by Japan (6.1111
± 3.97118) and Kenya (6.8148 ± 6.33851). The results suggest that the
developed nations have made considerable strides in promoting equitable
distribution of resources as well as employing both genders through
leadership positions. On the other hand, the developing and undeveloped
are still faced with problems of inequality in terms of unequal distribution
of resources and gender equality.
4.2.4. Poverty
The study examined the reduction of poverty as one of the critical

factors of SDG to understand the variation among the selected nations. In
this case, poverty was perceived in terms of the spent by a household per
day as compared to the gross domestic product. The proportion of poverty
among the selected was expressed in percent (1 – 100). A summary of the
statistics representing poverty level obtained from WDI database is
provided in Table 7 below.
Table 7: Summary statistics of the poverty level of the selected nations.
43
Algeria 27 .4370 2.27091

Australia 27 .0000 .00000
Bolivia 27 13.5074 23.47630
Ethiopia 27 21.8815 37.93167
Germany 27 .0000 .00000
Iraq 27 9.4926 18.62095
Italy 27 .0000 .00000
Japan 27 .0000 .00000
Kenya 27 14.2519 24.54991
Malaysia 27 .0000 .00000
Mexico 27 3.8667 7.66139
Syria 27 1.9370 5.84309
The data revealed that Ethiopia (21.8815 ± 37.93167) had the

highest mean score followed by Kenya (14.2519 ± 24.54991) and Bolivia
(13.5074 ± 23.47630). On the other hand, developed nations such as
Germany, Japan, Australia , Malalysia, and Italy had a mean score of
zero.This suggested that most of the developed nations had achieved the
goal of reducing poverty in the populace while the developing and under-
developed nations were presently being affected by high poverty level.
4.2.5. Freedom
The study examined the freedom of the selected nations as one the
key factors of SDG that contributes to its achievement. In this case,
freedom was perceived in terms of the political status and the presents of
war in the selected nations. The proportition of political stability and war
among the selected nations was expressed using a Likert scale ranging
from 1 (highest) to 7(lowest). A summary of the statistics representing
political stability was obtained from the UNCTAD database is provided in
Table 8 below.
44
Table 8: Summary statistics of the freedom in the selected nations.
Descriptive Statistics
Algeria 27 6.2222 .75107

Australia 27 1.0000 .00000
Bolivia 27 2.3333 .78446
Ethiopia 27 5.3704 .83887
Germany 27 1.0000 .00000
Iraq 27 6.3333 .83205
Italy 27 1.0370 .19245
Japan 27 1.0741 .26688
Kenya 27 4.7037 1.26536
Malaysia 27 4.3333 .48038
Mexico 27 2.8889 .80064
Syria 27 7.0000 .00000
The data revealed that Australia (1.0000 ± .0000) and Germany

(1.0000 ± .0000) had the highest mean score followed by Japan (1.0370 ±
.19245) and Japan (1.0741 ± .26688). The nations with least mean score
included Syria (7.0000 ± .00000), Iraq (6.3333 ± .83205) and Algeria
(6.2222 ± .75107). This suggests that the developed nations have a high
political stability as compared to the developing and under-developing
nations. The developing and under-developed nations are more likely to be
faced with conflicts and wars.
4.2.6. Democracy
The study examined the democracy of the selected nations as one

of the crucial factors affecting the achievement of the SDGs. In this case,
democracy of the selected nations was expressed using a Likert scale
45
ranging from 1 (highest) to 7 (lowest). A summary of the statistics
representing the income level obtained from WDI database is provided in
Table 9 below.
Table 9: Summary statistics of the income level of the selected nations.
Algeria 27 6.2963 .66880

Australia 27 1.0000 .00000
Bolivia 27 3.0370 .19245
Ethiopia 27 5.2593 .65590
Germany 27 1.4444 .50637
Iraq 27 6.3704 .68770
Italy 27 1.5185 .57981
Japan 27 1.8148 .39585
Kenya 27 4.4074 1.18514
Malaysia 27 4.3704 .49210
Mexico 27 3.1481 .66238
Syria 27 6.8148 .39585
The data revealed that Australia (1.0000 ± .0000) had the highest
mean score followed by Germany (1.4444 ± .50637) and Italy (1.5185 ±
.57981). The nations with least mean score included Syria (6.8148 ±
.39585),Iraq (6.3704 ± .68770) and Algeria (6.2963 ± .66880).This suggested
that the developed nations had the highest democracy while the under-
developed and developing nations had the least democracy. This suggests
that there is a high probability for the indicators of SDG to be achieved in
developed nations as compared to developing nations. Thus, the capacity
to achieve the goals and targets of SDG indicators is based on increased
democracy.
46
4.2.7. Income level
The income level of the selected nations forms the indepedent

variable that is used in the study. In this case, the income level of the
selected was perceived in terms of the gross per capita income, that is
expressed as a proportion of the GDP. The income level of the selected
nations was expressed using a Likert scale ranging from 1 (highest) to 7
(lowest). A summary of the statistics representing the income level
obtained from WDI database is provided in Table 10 below.
Table 10: Summary statistics of the income level of the selected nations.

Algeria 27 1.0717 2.35211
Australia 27 1.6640 1.36803
Bolivia 27 2.2281 1.54986
Ethiopia 27 4.3658 6.20194
Germany 27 1.4356 2.18777
Iraq 27 5.5118 22.71762
Italy 27 .4394 2.00741
Japan 27 1.0205 1.99015
Kenya 27 3.7970 2.39650
Malaysia 27 1.6239 3.80467
Mexico 27 1.1663 2.83236
Syria 27 1.6850 2.95733
The data revealed that Iraq (5.5118 ± 22.71762) had the highest
mean score followed by Ethiopia (4.3658 ± 6.20194), (Kenya (3.7970 ±
2.39650 ) and Bolivia (2.2281 ± 1.54986). On the other hand, Italy (.4394 ±
2.00741) had the lowest mean score. These results suggest that most of
the developed nations had a higher economic growth as compared to the
under-developed or developing nations. A high level of income received by
47
some of the nations significantly contributed to the achievement of SDG
indicators in the developed nations as compared to the developing nations.
4.2.8. Reliability analysis
The study also examined the reliability analysis of the data

collected from the WDI database using the Cronbach's alpha. This was
performed to establish the consistency of the data collected. The results
of the reliability tests are presented in Table 10 below.
Table 10: Reliability analysis of the selected SDG indicators.
Variable Cronbach's Alpha value

Poverty .309
Inequality .720
Environment .892
Communication and transport .730
School enrollment .691
Health .834
Income level .878
Freedom .887
Democracy .738
The results indicated that environment, freedom index, and income

level were considered to have the highest reliability coefficient with a
Cronbach’s value of .892, 0.887, and 0.878 respectively. The least
Cronbach’s value was obtained by poverty. Research has suggested that a
variable with a reliability coefficient over 0.7 is considered to be highly
reliable. On the other hand, a lower reliability coefficient means that the
data is considered to be unreliable. Thus, it gives a high-reliability
coefficient for all the selected factors in the study.
48
4.3. Hypothesis testing
In order to determine the relationship between the SDG and

economic growth, the study relied on some cross-nation fixed factors,
which include environmental, poverty, inequality, freedom index, and
socioeconomic factors that comprise of school enrollment, transport,
communication, and health. The study sought to test the proposed
hypotheses using statistical tools to answer the research questions as
follows.
environment
The study hypothesized that a reduction in the economic growth of

a nation tends to increase environmental issues that are encountered
significantly. To establish the relationship between economic growth and
the environment, the study relied on the use of Pearson correlation and
graphical representation to examined the dataset from the WDI database.
The study began by using the graphical representation of the relationship
between economic growth and the environment as shown in Figure 2
below.
49
Figure 2: A representation of the Kuznets Curve between income and
environment
The relationship between these variables indicates an increase in
environmental issues up to a certain point (approximately income = 3.5)
when it starts to reduce steadily. This suggests that environmental issues
tend to increase during the early stages, but reduces at the later stages as
illustrated in the classical EKC. After the graphical interpretation, the
study also examined the relationship between environmental issues and
economic growth using the Pearson’s Correlation. The results are
presented in Table 12 below.
Table 12: Correlation between Income and environment
Income Environment
Income Pearson Correlation 1 .135
Sig. (2-tailed) .675
N 12 12
50
Environment Pearson Correlation .135 1
N 12 12
The data revealed that there was a weak, positive correlation

between economic growth and environment with a coefficient of 𝜏 = 0.135.
It was also noted that this relationship was not significant 𝜌 > 0.001, in all
the selected nations. These results suggest that an increase in income
level has contributed towards reducing environmental issues faced by this
nations. However, there is still needa for more to be done. Therefore, the
study rejected the null hypothesis and support the alternate hypothesis
which purport that an increase in the economic development of a nation
tends to reduce environmental issues at a certain point.
4.3.2. The relationship between economic growth and inequality
The study hypothesized that there is a negative relationship

between a reduction in the level of income and increased inequalities
experienced by the selected nations. To examine the relationship that
exists between income and inequality, the study relied on the use of the
Pearson correlation and graphical representation to examined the dataset
from the WDI database. The study began by providing a graphical
representation of the relationship between economic growth and the
inequality as shown in Figure 4 below.
51
Figure4: A representation of the Kuznets Curve between income and
inequality
Figure 4 above indicates that an increase in the level of income

over time could imply a relative reduction in the inequalities experienced
by the selected nations. This slightly corresponds to the Kuznets curve in
which there is a reduction in the inequalities experienced as the economic
growth increases gradually. The study then examined the extent to which
the relationship between income level and inequality were correlated
using Pearson’s Correlation. The results are presented in Table 13 below.
Table 13: Coefficient between income level and inequalities among the
selected nations
52
Income Inequality
Income Pearson Correlation 1 -.007
N 12 12
Inequality Pearson Correlation -.007 1
N 12 12
The data revealed that there was a weak negative correlation

between income and inequality with a coefficient of τ = -.007.
Additionally, it was noted that there was no significant relationship
between income and inequality among the selected nations, ρ > 0.001.
Despite the increase in income level, these results suggest that there is
still a high level of inequalities experienced in the selected nations in
terms of the distribution of resources as well as the participation of both
genders in leadership roles. Therefore, the study accepted the null
hypothesis, which indicates that there is a negative relationship between
the income level and inequality.
4.3.3. The relationship between economic growth and socio-
economic issues
The study hypothesized that there is a negative association

between the level of income and socio-economic aspects among the
selected nations. To examine the relationship that exists between income
and socio-economic aspects, the study concentrated on the effects of
three main aspects namely health-care, school enrollment, and
communication and transport. The study used from Pearson correlation to
determine if there was a relationship between these variables and
graphical representation to determine if the data was in line with the
Kuznets curve. The study began by presenting the graphical representation
of income and the three variables representing socio-economic aspect.
53
Figure 5 below represents the relationship between income and socio-
economic aspects.
Figure 5: The relationship between income and socio-economic aspects.
Figure 5 above indicated that only healthcare tends to assume the Kuznets
curve while communication, transport, and education are not persistent in
the Kuznets curve. This suggests that an increase in the level of income
assist in addressing some of the healthcare problems that rise. The study
also examined the results of the correlation between income and socio-
economic aspects. The results are presented in Table 14 below.
Table 14: Coefficient between income level and socio-economic aspects

among the selected nations
Communication School
Income and transport enrollment health
54
Income Pearson Correlation 1 -.454 .219 .395
Sig. (2-tailed) .161 .517 .000
N 12 11 11 12
Communication Pearson Correlation -.454 1 .467 .211
and transport Sig. (2-tailed) .161 .148 .003
N 11 11 11 11
School Pearson Correlation .219 .467 1 .233
enrollment Sig. (2-tailed) .517 .148 .001
N 11 11 11 11
Health Pearson Correlation .395 .211 .233 1
Sig. (2-tailed) .000 .003 .001
N 12 11 11 12
The data revealed that only the health care aspect was weak,
strong and positively correlated to income level with a coefficient of 𝜏 =
.395. Additionally, the data revealed that there was a significant
relationship between income level and health care, 𝜌 < 0.001. The
relationship between Communication, transportation and the income level
indicated a negative strong correlation with a coefficient of 𝜏 = -0.454, 𝜌 >
0.001. Lastly, the association between school enrollment and income level
indicated a strong positive correlation with a coefficient of 𝜏 =0.219, that
was not significant, 𝜌 > 0.001.
Based on these results, an increase in the level of income leads to
more access to health care. Additionally, a higher increase in the income
level than what is used in the study could provide more support for
education, communication, and transport. Therefore, this study rejects
the null hypothesis and supports the alternate hypothesis that suggests
that there is a positive association between the level of income and socio-
economic aspects among the selected nations.
55
4.3.4. The relationship between economic growth and political
stability
The study hypothesized that there was a negative association

between the level of income and political stability among the selected
nations. In this case, the political stability was represented by the freedom
index in the dataset. To examine the relationship that exists between
income and political stability, the study relied on the use of the Pearson
correlation to determine if there was a relationship between these
variables and graphical representation to determine if the data was in line
with the Kuznets curve. It began by examining if the graph between
income level and political stability was similar to the Kuznets curve. Figure
6 below illustrates a pictorial representation of the relationship between
income level and political stability.
Figure 6: A representation of the relationship between income level and

political stability among the selected nations.
The figure indicated that there is an increase in the income level as
well as political stability. However, political stability starts to reduce when
it reaches optimum (income > 7), increasing the likelihood of political
instability and wars. There is a high possibility that the curve will assume
56
the Kuznets curve as income increases. The study also examines the
relationship between income level and political stability among the
selected nations using Pearson’s correlation. The results are displayed in
Table 15 below.
Table 15: Coefficient between income level and political stability and wars
among the selected nations
Income Freedom
N 12 12
Freedom Pearson Correlation .532 1
N 12 12
The data revealed that there was a strong positive correlation

between income level and political stability and wars among the selected
nations with a coefficient of 𝜏 = 0.532, 𝜌 > 0.001. This suggests that an
increase in the income levels implies more political stability and the
capacity to transact freely. Based on the results obtained, it can be noted
that an increase in the income levels suggests a reduction in political
instability and war. Therefore, the study rejected the null hypothesis and
supported the alternate hypothesis, which suggests that there is a positive
association between the level of income and political stability among the
selected nations.
4.3.5. The relationship between economic growth and democracy
The study hypothesized that there was a negative association

between economic growth and democracy. In this case, democracy was
represented by the civil liberties and rights in the data collected. The
study relied on the use of the Pearson correlation and graphical
57
representation to examine the correlation between these two variables.
The study began by examining the graphical representation of the
relationship as shown in Figure 7 below.
Figure 7: A representation of the relationship between income level and

democracy among the selected nations.
The Figure above indicates that an increase in income level implies
an increase in democracy up to the optimum (income = 6) when it starts to
reduce. This is in line with the Kuznets curve, which indicates an increase
during the initial stages and a drop after an increase in income level. The
study also examined the relationship between income level and democracy
using Pearson’s correlation. The results are presented in Table 16 below.
Table 16: Coefficient between income level and democracy among the
selected nations
Income Democracy
58
N 12 12
Democracy Pearson Correlation .541 1
N 12 12
The data revealed that there was a strong positive correlation

between income level and democracy with a coefficient of τ = 0.541, ρ >
0.001. The data also indicated that there was a significant difference
between the nations selected. This suggests that an increase in income
level supports the civil liberties of the global populace.
Based on the results obtained, it can be noted that there is a
positive relationship between income level and democracy. An increase in
the income implies more democracy and accountability. Therefore, this
rejects the null hypothesis and supports the alternate hypothesis, which
suggests that there is a positive relationship between income level and
democracy.
4.4. Uneven implementation of SDGs
The study examined the overall relationship between SDGs and

economic growth to understand why there were variations in the
achievements among the selected nations. This was meant to provide a
solution to the second research inquiry which stated that “Why is there an
uneven implementation of indicators and goals of the SDGs despite the
increased level of income?” In order to determine the overall relationship,
income constituted of the dependent variable while the independent
variables were the elements of the SDGs such as inequality, political
stability, environmental aspects, democracy, and socio-economic
elements.
59
The study relied on the use of generalized linear models to examine
the data. The results are presented in Table 17 and 18 below.
Table 17: A model summary of the dataset
The data indicate that the can explain approximately 74 percent of

the relationship between SDGs and economic growth (ℛ 2 = .736). In
addition, the data revealed that there was no significant difference
between SDGs and economic growth among the selected nations, 𝜌 >
0.001. The study also examined the coefficients of each element used to
evaluate SDG. The results are presented on Table 18 below.
Table 18: Coefficients of the indicators representing the SDGs
The data revealed that the relationship between SDG and economic
growth was associated with a negative gradient. The data also indicated
60
that the socio-economic elements have a negative beta value of -0.129
suggesting there are wide variations among the selected nations. On the
other hand, inequality, environment, political stability and democracy had
positive beta values of 0.086, 0.264, 2.791, and 0.883 respectively. From
the data, it can be observed that political stability had the highest beta
value while socio-economic aspects have the least. This suggests that
uneven implementation of SDG indicators can be attributed to the existing
differences in the socio-economic aspects among the selected nations. The
model equation that can explain the relationship between SDGs and
economic growth is illustrated as follows
Income = -2.448 + 0.086 Inequality + 0.264 Environment - 0.129 Socio-

economic + 2.791 political stability + 0.883 democracy.
4.5. Summary
The study has critically examined the data from the WDI online
database and UNCTAD to determine the correlation between SDGs and
economic growth. The study relied on six hypotheses in which all of them
were supported. The present variation in the implementation was
attributed socio-economic aspects in the different nations. Regarding the
relationship between SDGs and economic growth, the study discovered
that all the indicators assumed the Kuznets curve except for some socio-
economic elements such as education, communication, and transportation.
61
Chapter 5. Discussion
5.1. Introduction
From the onset, this study set out to examine the correlation
between SDGs and economic growth in which the main factors
included environmental, poverty, inequality, health, education, social,
income, transport, communication, and freedom. The correlational
quantitative study concentrated on ten developing nations in order to
examine the correlation that exists between independent and dependent
variable. Secondary data were obtained from the World Bank's World
Development Indicators (WDI) online database and UNCTAD. The datasets
permitted the researcher to identify the common aspects and
variations in the relationship between economic growth and SDGs.
To analyze this dataset, the study relied on panel data analysis.
Three research questions guided the research. The first research

inquiry looked at the correlation between economic growth and all the
selected SDG factors. The second inquiry involved examining how does the
SDGs address the relationship between economic growth and the quality of
life. The last inquiry examined why there is the uneven implementation of
indicators and goals of the SDGs despite the increased level of income. To
understand the findings of the study, the discussion is sub-divided
into four key areas as follows:
5.2. Socio-economic aspects
The correlation between income and education from across nations

has been presented in the literature. However, results indicated that there
was no significant association between the education indicators and the
income level based on the fixed effects. Primary school enrollment
62
indicated a weak, positive relationship to the income level. These results
concurred with the findings of Easterly when they discovered a negative
association between school enrollment and the income level.70 This
suggests that the effect of income on education under fixed effect can be
sustained.
Various studies have examined the relationship between income
and the health care across nations in terms of the death rate, life
expectancy among others. In this study, health care was examined in terms
of death rate affecting the populace and access to medical services.
Regarding health, the results indicated that there was a positive
correlation between income and the health care indicator based on the
fixed effects. Nguyen and other researchers discovered the same results
when they examined the effect of economic growth on access to health
care services. 71
Transport and communication have been perceived to facilitate
economic growth of a nation. Some of the indicators considered under
transportation and communication included telephones, radios, and fax
among others. These indicators were found to be correlated to income
based on the fixed effects. Easterly concurred with these findings he
discovered a positive correlation between income and various indicators
72
representing transportation and communication across nations.
70
William Easterly. "Life during growth." Journal of economic growth 4, no.
3 (1999): 239-276.
71
Nguyen Thi Minh Thoa, Nguyen Xuan Thanh, Nguyen Thi Kim Chuc, and
Lars Lindholm. "The impact of economic growth on health care utilization: a
longitudinal study in rural Vietnam." International Journal for Equity in
Health 12, no. 1 (2013): 19-27.
72
William Easterly, Life during growth, pp. 239.
63
5.3. Political instability
The results indicated that there was a strong positive correlation that
existed between income and political instability indicator based on the
fixed and the neutral effects. This suggests that elements such as wars,
revolution, conflicts, tribal tensions, and demise were associated with an
increase in the level of income. Additionally, the study has provided little
evidence on the relationship between income and wars from the cross-
national elements. This is probably attributed to the availability of data
concerning wars and income form a cross-national perspective.
5.4. Democracy
The results indicated that income level was positively correlated to

the democracy indicators in the fixed effects. This suggests that an
increase in income level supported other institutional elements for
example autonomy from corruption, accountability among others. The
results also indicated that there was no significant difference in the
correlation between income level, democracy, and human rights.
5.5. Environment
The relationship between the environmental aspects and income has

been examined in terms of how it can achieve a Kuznets curve. The
results indicated that there is a positive correlation between the
environmental aspects and income. This suggests that environmental
degradation decrease after some time as long as income steadily
64
increases. The results obtained by Aşıcı echoed these findings.73
However, these findings are contrary to the findings that were obtained by
Almeida and other researchers who found no correlation.74
5.6. Inequalities
The association between inequalities and income has been

discussed by numerous studies an effort to support or reject Kuznets
curve. Some of the indicators representing inequalities that have been
examined include resource distribution, distributions of leadership position
between both genders among others. The results revealed that there was
a positive correlation between income and inequalities. This outcome can
be seen to offer benefits as it provides a solution to critics who have
suggested that an increase in income tends to widen income distribution
gap. This is contrary to what was achieved by Easterly who discovered an
75
insignificant relationship. In addition, the results supported the Kuznets
curve. Regarding the distribution of leadership position among the two
genders, it was noted that no significant difference existed among the
developed nations as opposed to either under-developed or developing
nations.
Chapter 6. Conclusion
Initially, this quantitative study intended to examine the correlation
between economic growth and SDGs. A correlation quantitative research
design was the most preferred in order to understand the correlation
73
Ahmet Atıl Aşıcı. "Economic growth and its impact on environment:
A panel data analysis." Ecological indicators 24 (2013): 324-333.
74
Almeida das Neves, Thiago Alexandre, Luís Cruz, Eduardo Barata,
and Isabel-María García-Sánchez. "Economic growth and environmental
impacts: An analysis based on a composite index of environmental
damage." Ecological Indicators 76 (2017): 119-130
75
William Easterly, Life during growth, pp. 256.
65
between economic growth and SDG. Part of the concern of the study was
to address the impact of economic growth on various indicators of SDG and
the why there is the uneven implementation of SDGs across nations.
The results indicated that there are various outcomes in the

correlation between economic growth and SDG. It was noted that the
income distribution of the selected nations got better over time especially
among the developed nations. However, there is an uneven cross-national
implementation of the indicators of SDGs. From the data examined, it was
noted that socio-economic aspects over the three decades were one of the
fixed cross-nation factors that were attributed to the uneven
implementation of the SDG indicators.
From a traditional perspective, it is expected that cross-fixed

elements are the main factors that influence the correlation between
economic growth and SDG such as poverty, inequality, education, political
stability, democracy among others. The selection of these indicators was
based on its relationship to economic growth and the Kuznets curve.
Changes in a nation’s ability to achieve the indicators of SDG are

highly dependent on the variations that occur in economic growth. For
instance, an improvement in environmental aspects can be reflected
through a reduction in pollution and CO2 emission, which are related to
economic growth. The outcomes obtained from the analysis of the
exogenous over time using statistical tests point in this direction.
In conclusion, there is evidence suggesting that various aspects
affecting the implementation of SDGs tend to reduce with increasing level
of income. This is despite the fact that cross-nation association between
income and the various indicators of SDGs remain relatively weak.
66
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13
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14

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UNIVERSITY LOGO

“Correlation between SDGs and

Academic Year 2017/2018

Economic growth has been associated with excessive resource

The encompassing nature of the SDG concept offers a political perspective of

1.2. Background of the study

From a historical perspective, sustainable development was initially created

The formulation of SDGs was followed by international recognition of some

Numerous studies have examined the contribution of social development goals

Scholars of economic growth and sustainable development have till now

1.3. Problem Statement

Despite being a relatively new policy, economic growth is considered a concern

The fundamental problem addressed by this quantitative study is the association

1.4. Purpose of the study

1.5. Research Questions

This study addressed the following research inquiries as follows.

1.6. Theoretical framework

The theoretical foundation of this study is built on Kuznets’ environmental

Figure 1: Relationship between environmental degration and per capita income as

1.7. Nature of the Study

This study is a quantitative correlational study. The use of a qualitative

Since the scope of this study is limited to a sample of countries as opposed to a

Cross-sectional studies are most preferred to examine the relationship between

Although the correlational quantitative study design is favored over other

Although a significant portion of the previous studies has examined SDGs as an

The rest of this research is structured as follows. Chapter 2 presents a review of

The purpose of the section is to review scholarly studies in relation to the

2.3. Impact of Economic Growth on Inequality

According to Easterly, the quality of life across states is positively correlated

A study by Niyimbanira aimed to estimate the effect of economic growth on

It is further likely that individuals would invest towards curative and

According to Blanco and Robin, the income inequality brought about by

The impact of economic growth on democracy is controversial. According to

This study examines the relationships between different dependent and

3.2. Hypotheses proposition

HO1: There is a negative correlation between SDGs and economic growth

H02: There is a negative correlation between economic growth and environmental

HO4: There is a negative correlation between economic growth and socio-economic

The research holds that there is a negative relationship between economic

Lange and Sebastian discovered that there is a high probability of reducing

Easterly discovered various methodological differences that affected the

Based on the null hypothesis, the outcome is expected to explain that an

3.3. Research Method and Design

In this study, a quantitative approach is preferred over qualitative approach

𝑦𝑖𝑡 = ∝𝑜 + ∝1 ∗ 𝑋1𝑖,𝑡 + ∝2 ∗ 𝑋2𝑖,𝑡 + … +∝𝑛 ∗ 𝑋𝑛𝑖,𝑡 + 𝜇𝑖𝑡 equation (1)

Where i represents each cross-fixed nation factors, t is time, y is the dependent

In this quantitative correlational research, the correlation between SDGs and

3.6. Operational Definition of Variables

To identify possible relationships between SDGs and economic growth as a

Based on the arguments presented by Easterly, the following proposed

The freedom index is considered an institutional element in the model. This

Operational Description Level of Variation of

Inequality Resource distribution index per cluster (%) interval 1-100 %

Poverty This is based on the headcount proportion in the interval 1-100 %

School School enrollment proportion of both primary and interval 1-100 %

Communication Percent of the commercial services using computer- interval 1-100 %

Environmental The rating of the environmental regulatory Interval (1=low to

This study will follow a correlational research design in which the

Secondary data will be sourced from the World Bank's World

The Kuznets curve assumes that an increase in economic growth

The research does also assume that the alternative organizational

Reforms initiated by the United Nations to introduce the SDGs have