DRIVING SUSTAINABLE ECONOMIC GROWTH THROUGH GOOD CORPORATE GOVERNANCE: AN INTEGRATIVE FRAMEWORK

Abstract

This article examines how good corporate governance (GCG) functions as a fundamental driver of sustainable economic growth (SEG) at both firm and macroeconomic levels. We develop an integrative framework linking governance mechanisms — transparency, board independence, accountability, anti-corruption measures, and stakeholder engagement — to key growth channels: investment attraction, efficient resource allocation, human capital development, technological innovation, and environmental stewardship. Drawing on cross-disciplinary literature from corporate finance, institutional economics, and sustainability studies, the paper synthesizes empirical findings and identifies mediating institutional factors (legal quality, market development, and information infrastructure). We propose an empirical strategy for cross-country panel analysis using governance indices (e.g., WGI, CG scores), ESG metrics, and sustainable growth indicators (green GDP proxies, SDG progress metrics). The analysis highlights heterogeneity across developed and emerging economies and underscores the role of digital disclosure and regulatory reforms in amplifying governance effects. Policy recommendations are offered for regulators, corporate boards, and investors to align governance reforms with long-term sustainability objectives. The paper contributes to bridging micro-level corporate governance with macro-level growth and provides a roadmap for future empirical work.