The Role of Urban Transparency in Fostering Investment in Smart Cities and Promoting Sustainable Development: An Econometric Study of Selected Smart Cities

Abstract

This study aims to highlight the role of urban transparency in advancing the smart city initiative and achieving sustainable development. Urban transparency is measured using two indicators: the Transparency Index and the Citizen Participation Index, both of which are considered independent variables. As for the dependent variable representing smart cities is measured by the Human Development Index (HDI). The study covers the top 20 smart cities selected from a total of 148 smart cities, based on reports published by the International Institute for Management Development (IMD), over the period 2019–2025, furthermore, EViews 12 software was used to estimate the baseline panel data models. The study findings revealed that the Citizen Participation Index has a positive effect on promoting investment in smart cities and achieving sustainable development, whereas the Transparency Index has no statistically significant effect on promoting investment in smart cities and achieving sustainable development. The study also recommended strengthening the participation of citizens and civil society in decision-making processes in order to direct investments towards meeting the actual needs of the community. This would contribute to improving investment efficiency in smart cities and reducing resource waste.