Industry 5.0 revolution and sdg 8: econometric evidence from a developing country

Abstract

The dawn of Industry 5.0 heralds a new era where the fusion of human ingenuity with cutting-edge technologies like artificial intelligence, robotics, and the Internet of Things promises unprecedented opportunities for sustainable economic growth, particularly in developing nations. Despite its potential, the full scope of Industry 5.0's impact on Sustainable Development Goal 8, focusing on sustainable economic growth, is not yet fully acknowledged. The study applies an econometric method to investigate the interaction of human capital, innovation, renewable energy capacity, foreign direct investment (FDI) inflows, carbon dioxide emissions, and economic growth in Vietnam from 2011 to 2022 underlying Cobb-Douglas function. Accordingly, the findings reveal that expenditure for human capital plays an important role in economic growth in the long run, followed by foreign direct investment (FDI) inflows, and Renewable Energy Generation. In contrast, CO2 emission, Innovation and Economic growth have no such a relationship. Altogether, the study offers policy recommendations for sustainable economic development, which strike a balance between bolstering human capital, nurturing innovation, generating renewable energy, attracting foreign direct investment (FDI), stimulating economic growth, and promoting sustainable practices. These recommendations aim to provide policymakers with comprehensive and effective strategies for guiding their initiatives