The Role of Women's Labor Law and Business Freedom in Achieving Sustainable Development Goals (SDGs) in OECD Countries

Abstract

Business freedom (FR) and women's labor law (WLL) are critical in achieving the SDGs. This research aims to test the effect of these two factors on the SDGs while also considering economic growth and energy efficiency, framing the analysis within the legal, economic, and environmental dynamics of the SDGs holistically. Fourier-augmented PANIC, cross-sectional dependence tests, panel OLS, bootstrap quantile regression, and panel Granger causality tests are applied for this aim. The OLS and bootstrap quantile regression analyses indicate that while FR negatively affects SDG at lower quantiles, these effects turn positive in higher quantiles. This can mean that in countries with high institutional quality, the freedom to do business becomes a tool for supporting sustainable economic development. The WLL has positive effects on SDGs in all quantiles except the 20th quantile. This result clearly shows the decisive role of women's labor rights and legal protections in driving sustainable development. The Granger causality test also supports these results: FR and WLL have a positive Granger causality effect on the SDGs. Additionally, while GDP positively affects SDGs in all quantiles, renewable energy efficiency negatively affects SDGs at low quantiles and has a positive impact at higher quantiles.