Abstract

This study identifies and compares the factors influencing the implementation of the Sustainable Development Goals (SDGs) across country groups with varying income levels. The objective is to provide empirical evidence for tailoring development policies  to specific stages of development. Using data from 56 countries for the period 2016-2023 and the Feasible Generalized Least Squares (FGLS) method, the study assesses the impact of six factors: innovation, human development, economic growth, industrialization, trade openness, and worldwide governance quality on the SDGs.

The findings identify human development as a key driver of SDG progress across all country groups, ranking as the most influential factor in implementing the SDGs. Innovation has a positive impact only in high-income countries; in contrast, it is inversely associated with achieving the SDGs in low- and lower-middle-income countries. Industrialization and trade openness have not contributed significantly to overall progress. Notably, in the lower-middle-income and low-income groups, the study finds an inverse relationship between industrialization and SDG achievement.  

Furthermore, economic growth exerts a heterogeneous effect, having a positive impact on SDG achievement in low-income countries by boosting employment and income, while negatively affecting high- and upper-middle-income countries due to increasing consumption and heavy ecological pressure, which hinders sustainable development across all environmental dimensions. Finally, enhancements in institutional quality are found to primarily bolster SDG progress in high-income countries.

These results underscore the importance of prioritizing human development policies not only for low-income countries but also for high-income countries, given the central role  of human development in progress. Enhancing innovation capacity, restructuring industries and economic growth models, and strengthening institutions are necessary to achieve the SDGs across country groups. Furthermore, effective achievement of the SDGs requires policies that are specifically and appropriately designed for each country group, based on their respective development levels.