Does digital economy development matter? Role of supply chain management and CO₂ emissions in BRICS

Large risks and opportunities arise for production operations as a result of international governmental initiatives to limit carbon emissions. In instance, high-emitting manufacturing processes may be a reflection of productive inefficiencies and the uncertainty of the prices of carbon dioxide emissions. Recently, there has been a lot of attention paid to the topic of ecologically responsible supply chain management. Therefore, participants in the supply chain have worked together to create effective contracts, often known as green supply chain management contracts. In order to demonstrate the key role of financial efficiency, environmental sustainability, and supply chain management in sustainable growth and digital technology development, this study considers the data for BRICS economies over the period of 2008-2022. However, under the supply chain management, this study considers the innovation efficiency, input, and output to evaluate the external determinants. However, this study employs the OLS, 2SLS, and AMG estimator to demonstrate the robust and reliable outcomes for selected economies. In compile words, this study divides empirical scheme into two different explained variables such as sustainable growth and development of digital technologies. However, to show empirical scheme very catchy, the present study uses the simultaneous equation models. Therefore, all selected indicators of sustainable growth contribute to economic growth efficiently except the foreign direct investment. Besides for the digital technology development, all factors significantly contribute to digital technologies except the carbon emissions and foreign direct investment. Additional robust tests confirm the consistency and stability of the findings reached in this research. Thus, to improve economic performance, digital economy development, and sustainability, authorities in BRICS areas should develop strategies that enhance digital economy development under the green supply chain management.