Assessing the interplay between political globalization, social globalization, democracy, militarization, and sustainable development: evidence from G-7 economies

Sustainable development can act as a catalyst in boosting environmental sustainability and human welfare by alleviating unsustainable production and consumption practices. Political globalization emerges as indispensable in increasing global environmental governance. In addition, social globalization, militarization, and democracy can also affect sustainable development. In light of the overlooked impacts of these crucial variables on sustainable development within prior research studies, this study investigates the heterogeneous effects of political globalization, militarization, social globalization, and democracy on sustainable development from 1990 to 2019 in the G-7 panel. The results obtained from the application of the methods of moment quantile regressions reveal that a one-percentage-point increase in political globalization yields a significant enhancement in sustainable development, ranging from 0.015 to 0.017% across the 10th to 90th quantiles. Contrarily, sustainable development exhibits a decline within the range of 0.025 to 0.028% across the 10th to 90th quantiles, on account of a 1% increase in social globalization. Likewise, militarization hampers sustainable development with a slightly increasing effect from the 10th to 90th quantiles. Gross fixed capital formation decreases sustainable development while the relationship between democracy and sustainable development indicates a negative correlation, which has not achieved statistical significance across the majority of quantiles. These novel outcomes are also verified by using some other regression tests. Subsequently, a detailed policy framework is presented for the purpose of fostering sustainable growth within the G-7 group.