CAPABILITY TRANSFORMATION MODEL OF SUSTAINABLE DEVELOPMENT

  • Irabor Pacqueens Ehiabhi Institute of International Trade and Development, University of Port Harcourt, Rivers State Nigeria
  • Kalu Ijeoma E. Institute of International Trade and Development, University of Port Harcourt, Rivers State Nigeria
  • Udeorah Sylvester F. Institute of International Trade and Development, University of Port Harcourt, Rivers State Nigeria
  • Agbarakwe Henry Institute of International Trade and Development, University of Port Harcourt, Rivers State Nigeria
Keywords: Sustainable Development, Capability Transformation, Structural Transformation, Social Capacity, Political Capacity, Political CapacityEconomic Complexity, Institutional Economics, Human Flourishing

Abstract

Sustainable development is often explained through economic growth, institutions, or productive sophistication. This paper develops the Capability Transformation Model of Sustainable Development, which conceptualizes development as the sequential transformation of Social Capacity, Political Capacity, and Economic Capacity. Using a balanced panel of 132 countries (2002–2023), with Voice and Accountability, Government Effectiveness, Economic Complexity, and Planetary-adjusted Human Development as proxies, the analysis employs System GMM, causal mediation, and structural equation modelling. Results support a significant sequential pathway linking the three capacities to sustainable development. The paper reconceptualizes structural transformation as capability transformation culminating in Ever-Flourishing Human Conditions.

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Published
2026-10-24
How to Cite
Ehiabhi, I., Ijeoma E., K., Sylvester F., U., & Henry, A. (2026). CAPABILITY TRANSFORMATION MODEL OF SUSTAINABLE DEVELOPMENT. GPH-International Journal of Business Management, 9(10), 117-144. https://doi.org/10.5281/zenodo.23615463