Nexus between financial inclusion and natural resource management: How human development affects the sustainability practices

Abstract

There is increasing apprehension surrounding the sustainable governance of natural resources in South Asian nations, where the economy's progress is significantly dependent on these resources. Financial inclusion is a vital determinant in promoting sustainable practices as it pertains to the accessibility and utilization of financial services by all population sectors. Moreover, the field of human development, which encompasses various indicators, including education, healthcare, and living standards, exerts a substantial influence on the formation of societal behaviour and attitudes towards the conservation of resources. This research investigates the correlation between financial inclusion, natural resource management, and human development in South Asian nations from 2008 to 2020. Panel data modelling is used in this study to examine the relationship between the abovementioned variables and evaluate human development's influence on sustainability practices. This study utilizes panel data analysis to examine the complex association between financial inclusion and natural resource management. This study examines the relationship between different levels of human development and adopting sustainable practices within the region. Using the panel data framework facilitates the analysis of both idiosyncratic country‐specific effects and shared patterns observed among the South Asian countries under consideration. The findings of this research offer valuable perspectives on the intricate relationship between financial inclusion, human development, and natural resource management. The results of this study make a valuable contribution to the current body of literature by emphasizing the importance of inclusive financial systems in fostering sustainable practices. Furthermore, these findings provide insight into the influence of human development on the formation of individuals' attitudes and behaviours about the conservation of resources. The implications of these findings are relevant for policymakers and stakeholders who aim to improve sustainability initiatives and promote inclusive economic development in South Asian nations.