Role of Finance in Sustainable Development: A Cross-Country Evidence

Abstract

Financing sustainable development is vital in modern society, and Development money aims to support global community agreements. All domestic and international resource flows, regulations, and international agreements must fit with economic, social, and environmental concerns. It includes all means of implementing the SDGs into a comprehensive financial framework and leads governments, international organizations, economic sectors, and civil society. Context-driven sustainable development goals research provides in-depth insights into global problems and helps regulators discover answers. A well-structured financial framework can implement sustainable development finance to fulfill SDG targets. Our analysis demonstrates that finance mechanisms, equity financing, and financial liquidation can be leveraged to meet economic targets and SDGs. This research also focuses on implications; financial impacts may be more diverse and harder to evaluate. Financial Investors provide up-front working capital and only obtain a return when an agreed result is accomplished. Funds will be used to solve societal issues like education empowerment. Financial constraints are a serious issue to be focused on and may already be helping the planet. Using the SYS-GMM method. This research uses empirical analysis to explain cross-country per capita income differences after using 47 countries. Our results show that financial development is important for long-term development. We also find that the effect of financial-economic policy on financial development is transferred to developing economies through financial development indicators.