ABSTRACT This research investigates the dynamic and heterogeneous effects of globalization on SDG 10 (reducing income inequality) mediated by green growth and moderated by institutional quality. The present study utilizes a panel dataset of 39 developing countries from 2004 to 2022. Furthermore, this study employs the System‐Generalized Method of Moments (S‐GMM) and the Method of Moments Quantile Regression (MMQR) to examine the dynamic and heterogeneous link between globalization and SDG 10, respectively. The results reveal that globalization affects SDG 10 in a dynamic and heterogeneous manner. The findings of S‐GMM and MMQR indicate that social globalization directly mitigates inequality. However, economic and political globalization enhance inequality. Moreover, the results underscore that economic and political globalization promote green growth by creating green economic opportunities, thereby advancing SDG 10. Interestingly, the study finds that economic and social globalization contribute to achieving SDG 10, particularly when institutional quality is strong, thereby highlighting the synergistic impact of globalization on SDG 10. This research reveals the significance of green growth and institutional governance for understanding the mechanisms underlying the relationship between globalization and SDG 10, with practical and academic implications for governments and policymakers in developing countries.
Khan et al. (Wed,) studied this question.