Integrating Neutrosophic Analysis into Economic Growth and Sustainable Development Evaluation

Muhammad Eid BALBAA^1,*, Ebru Ozbilge², Emre Ozbilge³

¹Tashkent State University of Economics, Tashkent, Department of World Economy and International Economic Relations, Uzbekistan

²College of Business Administration, American University of the Middle East, Kuwait

³Computer Engineering Department, Faculty of Engineering, Cyprus International University, 99258 Nicosia, North Cyprus, Mersin 10, Turkey

Emails: m.balbaa@tsue.uz; ebru.kahveci@aum.edu.kw; eozbilge@ciu.edu.tr

Abstract

Mathematically, this study aims to analyze the dynamic linkage between economic growth and sustainable development by employment of integrated econometric–neutrosophic approach. Standard econometric models typically fail to address the risk, ambiguity and multi-dimensionality of sustainability indicators. In comparison, the neutrosophic approach – based on truth, indeterminacy and falsity – provides a solid tool for expressing uncertainty and vagueness with respect to socio-economic assessments. The article creates the ability to use quantitative data together with indeterminacy level (neutrosophic decision making) for evaluating a more complete effort of the sustainability–growth continuum, i.e., beyond only measurable results we evaluate confidence and indeterminacy embedded within them which can be seen by policy makers. Empirical evidence comes from a transition economy characterized by the significant structural reforms and modernization over recent years that clearly shows how strong economic growth can be accompanied by continuing environmental pressures. We compare the official statistics with regards to GDP growth and CO2 emissions per capita that are predicted from 2018 till 2023, in order to analyze whether environmental sustainability develops in line with economic development. Results show that the economy is resilient and growing consistently, while environmental performance is mixed, indicating partial decoupling of growth from sustainability.

Keywords: Neutrosophic analysis; Economic growth; Sustainable development; Uncertainty modeling; Transition economies