A Multidimensional Assessment of Country-Level Sustainable Development Goal (SDG) Progress Using Sustainable Trade Metrics

Sustainable development is an important topic based on three fundamental elements—social, economic, and environmental—and provides information about countries' levels of well-being. This study investigates the sustainable trade index and its relationship with sustainable development goals. Accordingly, a multi-stage statistical approach was followed in the study due to the inclusion of different economic, social, and environmental indicators. First, factor analysis was conducted using Principal Component Analysis (PCA) to assess the impact of trade, governance, and environmental indicators on SDG performance. Multiple regression analysis was then used to identify variables that impact sustainable development goals. Cluster analysis then clustered/grouped countries based on their level of development, i.e., their level of economic development. The obtained results offer a more holistic and analytical understanding of the relationship between sustainable development goals and trade systems. The proposed three-stage statistical model is expected to provide useful insights for researchers and policymakers working on sustainable development and trade.