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Digital pathways to sustainability: The role of Europe-Central Asia region's digitalization, trade, and geography maximizing sustainable development in China.

Umer Shahzad,Said Muhammad

Published 2025 in Journal of Environmental Management

ABSTRACT

The significance of digitalization in sustainable development, particularly its impact on social, economic, and environmental dimensions, remains largely underexplored. This study aims to investigate the role of digitalization, geography, and technology-driven bilateral trade in advancing sustainable development in China within the context of China-Europe and Central Asian countries' relations. We employed linear regression with Panel-Corrected Standard Errors (PCSEs), Generalized Method of Moments (GMM), quantile regression, and Granger causality tests, analyzing panel data from 2000 to 2022 by selecting 58 European-Central Asian countries and China. The findings reveal the critical role of digitalization, geography, and technological bilateral trade in the sustainable development of China. Moreover, the threshold effect underscores digitalization's crucial role in mitigating or amplifying the influence of geography and technology-driven bilateral trade, thus playing a key role in effectively addressing sustainability challenges. These findings contribute to the theoretical understanding of sustainable development and offer actionable insights for policymakers, emphasizing the need for strategies that integrate digital, geographical, and trade dimensions to achieve holistic and inclusive development goals.

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