Sustainable Development for Economic Growth and Investment Attractiveness: CEE vs. Western Europe
Sorana VATAVU – Dumitrita GIRLA – Cristina CRISTE – Oana-Ramona LOBONT
https://doi.org/10.18267/pr.2026.vol.2587.33
Abstract: Considering the current fundamental strategic objective on sustainable development, this paper assesses SDG performance at the national level by its impact on economic growth and investment attractiveness. The study is based on panel data across the EU-27 member states over 2000-2025, capturing dynamics from the Paris Agreement through regression and cluster analysis. Results indicate that higher SDG Index scores enhance economic growth, proving more influence on CEE countries, while the Western countries’ development depends more on alternative economic determinants. This research acknowledges limitations related to inter-regional heterogeneity and utilisation of the aggregate sustainability indicator, preventing the acknowledgement of distinctive contributions of the SDG dimensions. The study concludes with a clusterisation of EU member states across time, to observe distinctive actions and how countries gradually incorporate sustainability into their strategic objectives.
Keywords: sustainability, SDG index, foreign direct investment, economic growth, performance, European Union
JEL Classification codes: Q01, F21, O40
Fulltext: PDF
Published by: Prague University of Economics and Business, Oeconomica Publishing House
Year of publication: 2026
Online publication date: 20 May 2026
Copyright: Authors of the papers
ISBN 978-80-245-2587-7
ISSN 2453-6113
Pages 389-406