The role of the pharmaceutical industry in achieving SDG 9 in low- and middle-income countries

The research examines the role of the pharmaceutical industry in achieving Sustainable Development Goal 9 in the low- and middle-income countries (LMICs). The economic and environmental aspects of pharmaceutical industrialization are measured with the help of two composite measures: Sustainability in pharmaceutical industry (SPI) and Pharmaceutical Economic performance Index. The endogeneity, the dynamics of time, and heterogeneity of countries are tackled using a dynamic System Generalized Method of Moments model that is estimated using ten LMICs panel data covering timeframe of 2013–2023. Findings indicate that sustainability remains an issue that persists: a lagged SPI (SPI t−1 ) has a positive influence on the present sustainability. Sustainability is also increased with economic performance and foreign direct investment and a detrimental effect is exerted by urbanization. Significant positive results are evident in the Government environmental taxes and the government expenditure on environmental protection. These results put a major emphasis on the roles played by industrial performance, policy tools, and technological transfer to enhance sustainable pharmaceutical industrialization in LMICs.