Advancing Sustainable Development in the Indo‐Pacific: Innovation, Stability, Entrepreneurship, and Environmental Performance as Drivers of Eco‐Growth

Amid rising environmental pressures, the relationship between macroeconomic conditions and ecological sustainability in the Indo‐Pacific region remains underexplored, particularly regarding how economic growth and unemployment jointly influence eco‐growth. This study addresses this gap by employing a combined framework of two‐way fixed effects with mediation and moderation analysis, based on panel data from 14 Indo‐Pacific countries between 1990 and 2023. The results show that economic growth supports eco growth by encouraging technological innovation, while unemployment weakens it by reducing social stability. Entrepreneurial activity strengthens the positive effect of economic growth while mitigating the environmental consequences associated with unemployment. In addition, environmental performance further supports these effects, highlighting the importance of institutional quality in promoting sustainable outcomes. The findings also show clear differences across countries: the positive contribution of economic growth is stronger in more developed Indo‐Pacific economies, whereas the negative environmental effects of unemployment are more pronounced in less developed ones. By combining these methods in a single framework, the study provides a clearer picture of what drives eco growth in the Indo‐Pacific region and offers practical insights for aligning economic and environmental priorities in support of the Sustainable Development Goals.