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Distributed Causality in the SDG Network: Evidence from Panel VAR and Conditional Independence Analysis

Applications 2026-01-30 v1 Machine Learning Econometrics Methodology Machine Learning

Abstract

The achievement of the 2030 Sustainable Development Goals (SDGs) is dependent upon strategic resource distribution. We propose a causal discovery framework using Panel Vector Autoregression, along with both country-specific fixed effects and PCMCI+ conditional independence testing on 168 countries (2000-2025) to develop the first complete causal architecture of SDG dependencies. Utilizing 8 strategically chosen SDGs, we identify a distributed causal network (i.e., no single 'hub' SDG), with 10 statistically significant Granger-causal relationships identified as 11 unique direct effects. Education to Inequality is identified as the most statistically significant direct relationship (r = -0.599; p < 0.05), while effect magnitude significantly varies depending on income levels (e.g., high-income: r = -0.65; lower-middle-income: r = -0.06; non-significant). We also reject the idea that there exists a single 'keystone' SDG. Additionally, we offer a proposed tiered priority framework for the SDGs namely, identifying upstream drivers (Education, Growth), enabling goals (Institutions, Energy), and downstream outcomes (Poverty, Health). Therefore, we conclude that effective SDG acceleration can be accomplished through coordinated multi-dimensional intervention(s), and that single-goal sequential strategies are insufficient.

Keywords

Cite

@article{arxiv.2601.20875,
  title  = {Distributed Causality in the SDG Network: Evidence from Panel VAR and Conditional Independence Analysis},
  author = {Md Muhtasim Munif Fahim and Md Jahid Hasan Imran and Luknath Debnath and Tonmoy Shill and Md. Naim Molla and Ehsanul Bashar Pranto and Md Shafin Sanyan Saad and Md Rezaul Karim},
  journal= {arXiv preprint arXiv:2601.20875},
  year   = {2026}
}

Comments

Comprehensive Manuscript with Code & Data

R2 v1 2026-07-01T09:24:23.905Z