Development Pathways toward Inclusive Green Growth in Emerging Economies
Article Sidebar
Main Article Content
Abstract
This paper examines the relationships between economic growth, social inclusion, and environmental sustainability in emerging economies. It considers economic expansion not only in terms of output performance but also through its capacity to reduce poverty, improve access to productive opportunities, strengthen financial and social inclusion, and limit environmental degradation. The literature shows that sustained growth does not automatically generate equitable or environmentally sustainable outcomes. Institutional quality, financial inclusion, human capital, infrastructure, technological innovation, renewable energy, green finance, and public policy influence the extent to which economic progress is translated into broader welfare improvements. The paper also emphasizes the concept of inclusive green growth as an integrated framework connecting economic efficiency, social participation, and ecological preservation. The reviewed contributions indicate that emerging economies face significant trade-offs but also important complementarities among these objectives. Effective development strategies therefore require coordinated institutional, fiscal, technological, financial, and environmental policies capable of expanding productive opportunities while reducing socioeconomic inequalities and environmental pressures. The paper concludes that the sustainability of economic transformation depends increasingly on the quality, distribution, and environmental content of growth rather than on its aggregate rate alone.
Article Details
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
References
1. Adejumo, O. O., Adejumo, A. V., & Aladesanmi, T. (2020). Technology-driven growth and in-clusive growth—Implications for sustainable development in Africa. Technology in Society, 63, 101373. DOI: 10.1016/j.techsoc.2020.101373.
2. Adeosun, O. A., Olomola, P. A., Adedokun, A., & Ayodele, O. (2020). Public investment and inclusive growth in Africa. International Journal of Social Economics, 47(12), 1669–1691. DOI: 10.1108/IJSE-05-2020-0333.
3. Abdouli, M., Kamoun, O., & Hamdi, B. (2018). The impact of economic growth, population density, and FDI inflows on CO2 emissions in BRICTS countries: Does the Kuznets curve exist? Empirical Economics, 54(4), 1717–1742. DOI: 10.1007/s00181-017-1263-0.
4. Abbass, K., Zafar, M. W., Khan, F., Begum, H., & Song, H. (2024). COP 28 policy perspectives: Achieving environmental sustainability through FDI, technological innovation index, trade openness, energy consumption, and economic development in N-11 emerging economies. Journal of Environmental Management, 369, 122271. DOI: 10.1016/j.jenvman.2024.122271.
5. Agustin, I. N., Mahendra, R. A., & Hesniati, H. (2025). How does green finance affect the en-vironment in the ASEAN emerging countries? Economic Journal of Emerging Markets, 17(1), 70–81. DOI: 10.20885/ejem.vol17.iss1.art6.
6. Ali, A., Li, J., Zhang, J., & Chishti, M. Z. (2024). Exploring the impact of green finance and technological innovation on green economic growth: Evidence from emerging market econo-mies. Sustainable Development, 32(6), 6392–6407. DOI: 10.1002/sd.3031.
7. Amponsah, M., Agbola, F. W., & Mahmood, A. (2023). The relationship between poverty, in-come inequality and inclusive growth in Sub-Saharan Africa. Economic Modelling, 126, 106415. DOI: 10.1016/j.econmod.2023.106415.
8. Aoyagi, C., & Ganelli, G. (2015). Asia's quest for inclusive growth revisited. Journal of Asian Economics, 40, 29–46. DOI: 10.1016/j.asieco.2015.06.005.
9. Aslam, A., & Ghouse, G. (2023). Targeting the new sustainable inclusive green growth: A re-view. Cleaner and Responsible Consumption, 11, 100140. DOI: 10.1016/j.clrc.2023.100140.
10. Aslam, A., Naveed, A., & Shabbir, G. (2021). Is it an institution, digital or social inclusion that matters for inclusive growth? A panel data analysis. Quality & Quantity, 55(1), 333–355. DOI: 10.1007/s11135-020-01008-3.
11. Banday, U. J., & Aneja, R. (2020). Renewable and non-renewable energy consumption, eco-nomic growth and carbon emission in BRICS: Evidence from bootstrap panel causality. Inter-national Journal of Energy Sector Management, 14(1), 248–260. DOI: 10.1108/IJESM-02-2019-0007.
12. Ben Amara, D., & Qiao, J. (2023). From economic growth to inclusive green growth: How do carbon emissions, eco-innovation and international collaboration develop economic growth and tackle climate change? Journal of Cleaner Production, 425, 138986. DOI: 10.1016/j.jclepro.2023.138986.
13. Caglar, A. E., Daştan, M., Demirdag, I., & Avci, S. B. (2025). Is low carbon energy consumption sufficient for a sustainable environment in BRICS economies? Evidence from novel Fourier asymmetric CS-ARDL. Stochastic Environmental Research and Risk Assessment, 39, 1291–1306. DOI: 10.1007/s00477-025-02913-5.
14. Cichowicz, E., & Rollnik-Sadowska, E. (2018). Inclusive growth in CEE countries as a determi-nant of sustainable development. Sustainability, 10(11), 3973. DOI: 10.3390/su10113973.
15. Danish, Baloch, M. A., Mahmood, N., & Zhang, J. W. (2019). Effect of natural resources, re-newable energy and economic development on CO2 emissions in BRICS countries. Science of the Total Environment, 678, 632–638. DOI: 10.1016/j.scitotenv.2019.05.028.
16. Danish, & Ulucak, R. (2020). How do environmental technologies affect green growth? Evi-dence from BRICS economies. Science of the Total Environment, 712, 136504. DOI: 10.1016/j.scitotenv.2020.136504.
17. De Pascale, G., & Romagno, A. (2024). Globalization and ICT capital endowment: How do they impact on an inclusive Green Growth Index? Structural Change and Economic Dynamics, 69, 463–474. DOI: 10.1016/j.strueco.2024.03.003.
18. Doumbia, D. (2019). The quest for pro-poor and inclusive growth: The role of governance. Applied Economics, 51(16), 1762–1783. DOI: 10.1080/00036846.2018.1529392.
19. Drago, C., Costantiello, A., Arnone, M., & Leogrande, A. (2025). Bridging sustainability and inclusion: Financial access in the environmental, social, and governance landscape. Journal of Risk and Financial Management, 18(7), 375. DOI: 10.3390/jrfm18070375.
20. El Hamidi, N. (2023). La croissance pro pauvre au Maroc: L'intelligence artificielle au service de la macroéconomie. Revue Internationale du Chercheur, 4(1), 312–334. DOI not assigned.
21. Fan, S., Huang, H., Mbanyele, W., Guo, Z., & Zhang, C. (2023). Inclusive green growth for sus-tainable development of cities in China: Spatiotemporal differences and influencing factors. Environmental Science and Pollution Research, 30(4), 11025–11045. DOI: 10.1007/s11356-022-22697-3.
22. Feng, Y., Sun, M., Pan, Y., & Zhang, C. (2024). Fostering inclusive green growth in China: Identifying the impact of the regional integration strategy of Yangtze River Economic Belt. Journal of Environmental Management, 358, 120952. DOI: 10.1016/j.jenvman.2024.120952.
23. Fowowe, B., & Folarin, E. O. (2019). The effects of fragility and financial inequalities on inclu-sive growth in African countries. Review of Development Economics, 23(3), 1141–1176. DOI: 10.1111/rode.12594.
24. Fritz, M., & Koch, M. (2016). Economic development and prosperity patterns around the world: Structural challenges for a global steady-state economy. Global Environmental Change, 38, 41–48. DOI: 10.1016/j.gloenvcha.2016.02.007.
25. Fu, Q., Álvarez-Otero, S., Sial, M. S., Comite, U., Zheng, P., Samad, S., & Oláh, J. (2021). Impact of renewable energy on economic growth and CO2 emissions—Evidence from BRICS coun-tries. Processes, 9(8), 1281. DOI: 10.3390/pr9081281.
26. Gu, J., Renwick, N., & Xue, L. (2018). The BRICS and Africa's search for green growth, clean energy and sustainable development. Energy Policy, 120, 675–683. DOI: 10.1016/j.enpol.2018.05.028.
27. Han, S., Bin Kamaruddin, B. H., & Shi, X. (2025). The intertwined threads of blue economy, inclusive growth, and environmental sustainability in transition economies. Sustainability, 17(3), 1054. DOI: 10.3390/su17031054.
28. Haseeb, A., Xia, E., Danish, Baloch, M. A., & Abbas, K. (2018). Financial development, global-ization, and CO2 emission in the presence of EKC: Evidence from BRICS countries. Environ-mental Science and Pollution Research, 25(31), 31283–31296. DOI: 10.1007/s11356-018-3034-7.
29. Hunjra, A. I., Bouri, E., Azam, M., Azam, R. I., & Dai, J. (2024). Economic growth and envi-ronmental sustainability in developing economies. Research in International Business and Fi-nance, 70(A), 102341. DOI: 10.1016/j.ribaf.2024.102341.
30. Iddrisu, K., Doku, J. N., Abor, J. Y., & Dziwornu, R. (2023). Financial inclusion and inclusive growth in Africa: What is the moderation role of financial stability? Cogent Economics & Fi-nance, 11(2), 2267857. DOI: 10.1080/23322039.2023.2267857.
31. Jinapor, J. A., Abor, J. Y., & Graham, M. (2025). Energy consumption and inclusive growth in Sub-Saharan Africa: Does foreign direct investment make a difference? Energy Policy, 198, 114500. DOI: 10.1016/j.enpol.2025.114500.
32. Kamah, M., Riti, J. S., & Bin, P. (2021). Inclusive growth and environmental sustainability: The role of institutional quality in sub-Saharan Africa. Environmental Science and Pollution Re-search, 28(26), 34885–34901. DOI: 10.1007/s11356-021-13125-z.
33. Kamguia, B., Tadadjeu, S., Ndoya, H., & Djeunankan, R. (2025). Assessing the nexus between industrialization and inclusive green growth in Africa: The critical role of energy efficiency. Ecological Economics, 233, 108601. DOI: 10.1016/j.ecolecon.2025.108601.
34. Khan, N. H., He, W., & Min, A. (2025). Environmental quality and financial flows in emerging economies: Evidence from BRICS countries. Journal of Environmental Management, 387, 125854. DOI: 10.1016/j.jenvman.2025.125854.
35. Khan, Z., Ali, S., & Zhu, X. (2025). Environmental sustainability via sustainable development: The role of green innovation, clean energy and financial inclusion. Journal of Environmental Management, 393, 127175. DOI: 10.1016/j.jenvman.2025.127175.
36. Kim, J.-H. (2016). A study on the effect of financial inclusion on the relationship between in-come inequality and economic growth. Emerging Markets Finance and Trade, 52(2), 498–512. DOI: 10.1080/1540496X.2016.1110467.
37. Kjøller-Hansen, A. O., & Lindbjerg Sperling, L. (2020). Measuring inclusive growth experi-ences: Five criteria for productive employment. Review of Development Economics, 24(4), 1413–1429. DOI: 10.1111/rode.12689.
38. Le, H. P., Nguyen, T. H. P., & Bao, H. H. G. (2025). Government expenditure and sustainable development in emerging markets: The role of institutional quality. Journal of Open Innova-tion: Technology, Market, and Complexity, 11(2), 100558. DOI: 10.1016/j.joitmc.2025.100558.
39. Li, F., Wu, Y.-C., Wang, M.-C., Wong, W.-K., & Xing, Z. (2021). Empirical study on CO2 emis-sions, financial development and economic growth of the BRICS countries. Energies, 14(21), 7341. DOI: 10.3390/en14217341.
40. Li, M., Zhang, Y., Fan, Z., & Chen, H. (2021). Evaluation and research on the level of inclusive green growth in Asia-Pacific region. Sustainability, 13(13), 7482. DOI: 10.3390/su13137482.
41. Menyelim, C. M., Babajide, A. A., Omankhanlen, A. E., & Ehikioya, B. I. (2021). Financial in-clusion, income inequality and sustainable economic growth in Sub-Saharan African coun-tries. Sustainability, 13(4), 1780. DOI: 10.3390/su13041780.
42. Mitra, A., & Das, D. (2018). Inclusive growth: Economics as if people mattered. Global Busi-ness Review, 19(3), 756–770. DOI: 10.1177/0972150917713840.
43. Mutiiria, O. M., Ju, Q., & Dumor, K. (2020). Infrastructure and inclusive growth in Sub-Saharan Africa: An empirical analysis. Progress in Development Studies, 20(3), 187–207. DOI: 10.1177/1464993420927507.
44. Nchake, M. A., & Shuaibu, M. (2022). Investment in ICT infrastructure and inclusive growth in Africa. Scientific African, 17, e01293. DOI: 10.1016/j.sciaf.2022.e01293.
45. Ngepah, N. (2017). A review of theories and evidence of inclusive growth: An economic per-spective for Africa. Current Opinion in Environmental Sustainability, 24, 52–57. DOI: 10.1016/j.cosust.2017.01.008.
46. Ofori, I. K., & Figari, F. (2023). Economic globalisation and inclusive green growth in Africa: Contingencies and policy-relevant thresholds of governance. Sustainable Development, 31(1), 452–482. DOI: 10.1002/sd.2403.
47. Ofori, I. K., Figari, F., & Ojong, N. (2023). Towards sustainability: The relationship between foreign direct investment, economic freedom and inclusive green growth. Journal of Cleaner Production, 406, 137020. DOI: 10.1016/j.jclepro.2023.137020.
48. Ofori, I. K., Gbolonyo, E. Y., & Ojong, N. (2022). Towards inclusive green growth in Africa: Critical energy efficiency synergies and governance thresholds. Journal of Cleaner Production, 369, 132917. DOI: 10.1016/j.jclepro.2022.132917.
49. Ofori, I. K., Gbolonyo, E. Y., & Ojong, N. (2023). Foreign direct investment and inclusive green growth in Africa: Energy efficiency contingencies and thresholds. Energy Economics, 117, 106414. DOI: 10.1016/j.eneco.2022.106414.
50. Omar, M. A., & Inaba, K. (2020). Does financial inclusion reduce poverty and income inequal-ity in developing countries? A panel data analysis. Journal of Economic Structures, 9, 37. DOI: 10.1186/s40008-020-00214-4.
51. Oyinlola, M. A., Adedeji, A. A., Bolarinwa, M. O., & Olabisi, N. (2020). Governance, domestic resource mobilization, and inclusive growth in sub-Saharan Africa. Economic Analysis and Policy, 65, 68–88. DOI: 10.1016/j.eap.2019.11.006.
52. Qadri, S. U., Shi, X., Rahman, S., Anees, A., Ali, M. S. E., Brancu, L., & Nayel, A. N. (2023). Green finance and foreign direct investment–environmental sustainability nexuses in emerg-ing countries: New insights from the environmental Kuznets curve. Frontiers in Environmen-tal Science, 11, 1074713. DOI: 10.3389/fenvs.2023.1074713.
53. Raheem, I. D., Isah, K. O., & Adedeji, A. A. (2018). Inclusive growth, human capital develop-ment and natural resource rent in SSA. Economic Change and Restructuring, 51, 29–48. DOI: 10.1007/s10644-016-9193-y.
54. Rafique, M. Z., Li, Y., Larik, A. R., & Monaheng, M. P. (2020). The effects of FDI, technological innovation, and financial development on CO2 emissions: Evidence from the BRICS countries. Environmental Science and Pollution Research, 27(19), 23899–23913. DOI: 10.1007/s11356-020-08715-2.
55. Ren, S., Li, L., Han, Y., Hao, Y., & Wu, H. (2022). The emerging driving force of inclusive green growth: Does digital economy agglomeration work? Business Strategy and the Environment, 31(4), 1656–1678. DOI: 10.1002/bse.2975.
56. Sarpong, B., & Nketiah-Amponsah, E. (2022). Financial inclusion and inclusive growth in sub-Saharan Africa. Cogent Economics & Finance, 10(1), 2058734. DOI: 10.1080/23322039.2022.2058734.
57. Shahbaz, M., Rasool, G., Ahmed, K., & Mahalik, M. K. (2016). Considering the effect of bio-mass energy consumption on economic growth: Fresh evidence from BRICS region. Renewable and Sustainable Energy Reviews, 60, 1442–1450. DOI: 10.1016/j.rser.2016.03.037.
58. Silva de Castro, A., da Silva Alves, J., & Caixeta Andrade, D. (2019). Economic growth and CO2 emissions in BRICS: A panel cointegration analysis. Economia Aplicada, 23(2), 183–208. DOI: 10.11606/1980-5330/ea146203.
59. Song, Y., Huang, H., Li, Y., & Xia, J. (2024). Towards inclusive green growth in China: Syner-gistic roles and mechanisms of new infrastructure construction. Journal of Environmental Management, 353, 120281. DOI: 10.1016/j.jenvman.2024.120281.
60. Sun, Y., Ding, W., Yang, Z., Yang, G., & Du, J. (2020). Measuring China's regional inclusive green growth. Science of the Total Environment, 713, 136367. DOI: 10.1016/j.scitotenv.2019.136367.
61. Tariq, M., & Xu, Y. (2024). Toward low-carbon emissions and green growth for sustainable development in emerging economies: Do green trade openness, eco-innovation, and carbon price matter? Sustainable Development, 32(1), 959–978. DOI: 10.1002/sd.2711.
62. Touil, A., Ayad, K., El Hamidi, N., & Babounia, A. (2023). Toward greener supply chains: Analysis of the determining factors. Environmental Economics, 14(2), 114–126. DOI: 10.21511/ee.14(2).2023.09.
63. Tugcu, C. T., & Tiwari, A. K. (2016). Does renewable and/or non-renewable energy con-sumption matter for total factor productivity growth? Evidence from the BRICS. Renewable and Sustainable Energy Reviews, 65, 610–616. DOI: 10.1016/j.rser.2016.07.016.
64. Ummalla, M., & Goyari, P. (2021). The impact of clean energy consumption on economic growth and CO2 emissions in BRICS countries: Does the environmental Kuznets curve exist? Journal of Public Affairs, 21(1), e2126. DOI: 10.1002/pa.2126.
65. Ummalla, M., Samal, A., & Goyari, P. (2019). Nexus among the hydropower energy consump-tion, economic growth, and CO2 emissions: Evidence from BRICS countries. Environmental Science and Pollution Research, 26(34), 35010–35022. DOI: 10.1007/s11356-019-06638-1.
66. van Niekerk, A. J. (2020). Towards inclusive growth in Africa. Development Southern Africa, 37(3), 519–533. DOI: 10.1080/0376835X.2020.1736004.
67. Wang, L., Pal, S., Mahalik, M. K., & Gozgor, G. (2025). Empowering sustainable development in emerging economies: The role of renewable energy and domestic investment. Energy Eco-nomics, 148, 108631. DOI: 10.1016/j.eneco.2025.108631.
68. Wang, Q., & Chen, X. (2024). Can new quality productive forces promote inclusive green growth: Evidence from China. Frontiers in Environmental Science, 12, 1499756. DOI: 10.3389/fenvs.2024.1499756.
69. Whajah, J., Bokpin, G. A., & Kuttu, S. (2019). Government size, public debt and inclusive growth in Africa. Research in International Business and Finance, 49, 225–240. DOI: 10.1016/j.ribaf.2019.03.008.
70. Wu, Y., Song, L., & Zhou, X. (2025). Can adjust the fiscal expenditure structure promote in-clusive green growth? Empirical evidence from China. Review of Development Economics, 29(3), 1712–1733. DOI: 10.1111/rode.13185.
71. Xian, M. (2025). Impact of inclusive growth, environmental policy incentives, fintech and globalization on environmental sustainability in G20 countries. Sustainability, 17(1), 50. DOI: 10.3390/su17010050.
72. Xetor, L. E., & Mensah, J. (2025). Inclusive growth and sustainable development nexus: Where is the synergy? Sustainable Development, 33(4), 6189–6197. DOI: 10.1002/sd.3430.
73. Zaman, K., Abdullah, A. bin, Khan, A., Nasir, M. R. bin M., Hamzah, T. A. A. T., & Hussain, S. (2016). Dynamic linkages among energy consumption, environment, health and wealth in BRICS countries: Green growth key to sustainable development. Renewable and Sustainable Energy Reviews, 56, 1263–1271. DOI: 10.1016/j.rser.2015.12.010.
74. Zhang, Y.-J., & Wang, W. (2019). Do renewable energy consumption and service industry development contribute to CO2 emissions reduction in BRICS countries? Environmental Sci-ence and Pollution Research, 26(31), 31632–31643. DOI: 10.1007/s11356-019-06330-4.