Affiliation:
1. Department of Finance and Banking Patuakhali Science and Technology University Patuakhali Bangladesh
2. School of Finance Zhongnan University of Economic and Law Wuhan, P. R. China
3. Department of Accounting & Information Systems University of Barishal 8254 Barishal Bangladesh
Abstract
AbstractFinancial development (FD), by supporting financial inclusion, economic growth and green innovation, kindles sustainable development (SD), though unbridled FD without governance can fuel unsustainable activities. Therefore, we aim to estimate the role of governance (CG) in the FD–SD nexus for a panel of 128 countries covering the period 1995–2017 using advanced econometric methods. Results infer that FD beyond certain level may hamper SD, while governance always encourages SD. Besides, their confluence has substitutive effects, especially in high‐income countries, yet it is crucial for sustainability. These insights are useful for policymakers to develop appropriate FD, governance and SD strategies.
Subject
Development,Geography, Planning and Development