Assessing the Technological Kuznets Curve Within the Framework of Sustainable Development Goals: Evidence from BRICS PLUS-T

In the pursuit of sustainable development, it is crucial to examine whether technological innovation (TI) creates equitable economic distribution or widens income inequality (II). The study aims to investigate TI’s impact on II in BRICS-T and BRICS PLUS-T countries within the context of the technological Kuznets curve (TKC). Along with TI, financial development is a driving force for economic development, and the research explores FD’s influence on II. To analyze these relationships while accounting for globalization (G), the method of moments quantile regression (MMQR) is used. The study’s findings validate the U-shaped TKC, suggesting that TI, in the initial stage, reduces II. However, beyond a certain threshold, TI2 significantly widens II in both country groups. We found that the impact of TI on II was more pronounced in BRICS-T countries than in BRICS-PLUS-T countries, and the inclusion of newly added countries did not significantly affect the U-shaped relationship. Additionally, by enhancing financial inclusion, FD had a substantial and negative effect on II. In contrast, G, which concentrates wealth, was associated with higher II in both groups. This study offers a significant contribution by introducing the TKC in the context of BRICS-T and BRICS PLUS-T countries. Furthermore, the research contributes to the literature by evaluating the influence of FD and G within the context of TKC and applying novel MMQR. The study highlights a pathway to achieving the Sustainable Development Goals (SDGs 1, 7, and 10) and provides a policy framework for strategically allocating funds to technological advancements to reduce II.