The Impact of Structural Change and the Private Sector on Social Progress

Document Type : RESEARCH PAPER

Authors

1 Ph. D Student of Economics, Department of Economics, Faculty of Social Sciences and Economics, Alzahra University, Tehran, Iran

2 Professor of Economics, Department of Economics, Faculty of Social Sciences and Economics, Alzahra University, Tehran, Iran

Abstract

The Impact of Structural Change and the Private Sector on Social Progress

Abstract
Achieving inclusive development and improving citizens’ quality of life cannot be accomplished solely through economic growth; rather, it requires attention to social and institutional dimensions. In this regard, the Social Progress Index, as a comprehensive and outcome - oriented indicator, has gained increasing importance in assessing countries’ performance . This issue is particularly critical in countries with high natural resource rents and weak governance, where unbalanced economic structures, institutional weaknesses, and resource dependence can hinder improvements in welfare and quality of life. Nevertheless, the relationship between structural change, the role of the private sector, and energy with social progress has received limited attention in the literature. To fill this gap, this study employs panel data for the period 2011 – 2021 and the generalized method of moments (GMM) to evaluate and compare the effects of these three factors on social progress in resource - rent - dependent countries with weak governance and in countries with low rents and strong governance. The results indicate that structural transformation, the private sector, and energy all have positive and statistically significant effects on social progress in both groups of countries. The findings underscore that coordinated policymaking in the structural, institutional, and energy domains can strengthen the path toward enhanced welfare and quality of life and facilitate the achievement of sustainable development .
Keywords : Social Progress ; Structural Change ; Private Sector ; Energy .
JEL Classification: Q40, Q21, O14, L33.

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Main Subjects

References

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