Dynamic effect of external financing on the achievement of eco-efficiency and sustainable development objectives

Authors

  • Muhammad Naveed Jamil Khwaja Fareed University of Engineering and Information Technology
  • Abdul Rasheed Khwaja Fareed University of Engineering and Information Technology

DOI:

https://doi.org/10.23925/2179-3565.2024v15i4p72-89

Keywords:

External Finance, Eco-efficiency, Sustainable Development Goals

Abstract

United Nations Agenda 2030 is a call to action for global issues, and sustainability is a challenge that faces everyone. The primary objective of this research is to offer first-hand insights about external financing for sustainability. In order to calculate the impact of foreign financing on eco-efficiency, the Sustainable Development Goals, and the Social, Economic, and Environmental Development of 46 Asian countries between 2000 and 2021, the study used auto-regressive distributed lag (ARDL) models. The estimation's results showed foreign direct investment failed to significantly impact any of the five models over the short- or long-term, remittances, official development assistance, foreign debt, and restriction are useful indicators for advancing social, economic, environment development toward eco-efficiency and sustainable development goals. Study also indicated Sustainable development Goals and Social Development is more significant as compare to other three Models eco-efficiency, economic and environment development during short run and long run. Further indicated South Eastern Asia and East Asia Region Countries have strong requirement of External finance as compare to other Asian regions and external finance was highly significant relationship with eco-efficiency and Sustainable Development Goals in short run and long run during 2000 to 2021. Study recommendations are cleared; Government’s systems should be designed as UN Agenda-2030 that supporting direction toward World future Sustainability.

References

Adams, B., & Schuurman, F. J. (1993). Sustainable development and the greening of development theory: Zed Books.

Agenda, A. A. A. (2015). Addis Ababa Action Agenda of the third international conference on financing for development. UN. development, 2, 37.

Assembly, U. G. (2015). Transforming our world: the 2030 agenda for sustainable development, 21 October 2015: A/RES/70/1.

Awdeh, A. (2018). Financing for Development in the MENA Region. Review of Middle East Economics and Finance, 14(3), 20170036.

Behrman, J. N. (1960). Promoting free world economic development through direct investment. The American Economic Review, 50(2), 271-281.

Belucio, M., Rodrigues, C., Antunes, C. H., Freire, F., & Dias, L. C. (2021). Eco-efficiency in early design decisions: A multimethodology approach. Journal of Cleaner Production, 283, 124630.

Carruthers, D. (2001). From opposition to orthodoxy: The remaking of sustainable development. Journal of Third World Studies, 18(2), 93-112.

Chen, J., Ma, W., Kchouri, B., & Ribeiro-Navarrete, S. (2024). Resource rich yet debt ridden: The role of natural resources and debt servicing in sustainable economic growth. Resources Policy, 89, 104565.

CNUCED. (2018). World investment report 2018: investment and new industrial policies: UN.

Copeland, B. R. (2012). International trade and green growth. World Bank Policy Research Working Paper(6235).

Copeland, B. R., & Taylor, M. S. (2004). Trade, growth, and the environment. Journal of Economic literature, 42(1), 7-71.

Dalal, K. (1956). American Direct Investment in Underdeveloped Countries. Indian Economic Review, 3(1), 53-66.

Daly, S., Benali, N., & Yagoub, M. (2022). Financing Sustainable Development, Which Factors Can Interfere?: Empirical Evidence from Developing Countries. Sustainability, 14(15), 9463.

Elliott, L., & Elliott, L. (2004). The global politics of the environment: Springer.

Environment, W. C. o., & Development. (1987). Our Common Future Oxford.

Feenstra, R. C. (2015a). Advanced international trade: theory and evidence: Princeton university press.

Feenstra, R. C. (2015b). Advanced international trade: Theory and evidence second edition. Economics Books.

Fioravanti, S. (2016). Kataa unyanyapaa-refuse the stigma. The long walk to inclusion of people with disabilities in Kenya, with a particular emphasis on children's right to education.

Ghani, H. U., Mahmood, A., Finkbeiner, M., Kaltschmitt, M., & Gheewala, S. H. (2023). Evaluating the absolute eco-efficiency of food products: A case study of rice in Pakistan. Environmental Impact Assessment Review, 101, 107119.

Goodland, R., & Daly, H. (1996). Environmental sustainability: universal and non‐negotiable. Ecological applications, 6(4), 1002-1017.

Griggs, D., Stafford-Smith, M., Gaffney, O., Rockström, J., Öhman, M. C., Shyamsundar, P., Noble, I. (2013). Sustainable development goals for people and planet. Nature, 495(7441), 305-307.

Habermas, J. (1971). Toward a rational society: Student protest, science, and politics (Vol. 404): Beacon Press.

Habermas, J., & Ben-Habib, S. (1981). Modernity versus postmodernity. New German Critique(22), 3-14.

Hamid, I., Alam, M. S., Murshed, M., Jena, P. K., Sha, N., & Alam, M. N. (2022). The roles of foreign direct investments, economic growth, and capital investments in decarbonizing the economy of Oman. Environmental Science and Pollution Research, 29(15), 22122-22138.

He, Y., & Liu, R. (2023). The impact of the level of green finance development on corporate debt financing capacity. Finance research letters, 52, 103552.

Hinduja, P., Mohammad, R. F., Siddiqui, S., Noor, S., & Hussain, A. (2023). Sustainability in higher education institutions in Pakistan: a systematic review of progress and challenges. Sustainability, 15(4), 3406.

Huckle, J. (1991). Education for sustainability: Assessing pathways to the future. Australian Journal of Environmental Education, 7, 43-62.

Huppes, G., & Ishikawa, M. (2005). Eco‐efficiency and Its xsTerminology. Journal of Industrial ecology, 9(4), 43-46.

Jamil, M. N., & Rasheed, A. (2023a). Financial stability, innovation and green development. Journal on Innovation and Sustainability RISUS, 14(4), 89-111.

Jamil, M. N., & Rasheed, A. (2023b). How does Corporate Social Environment contribute to firm sustainability: mediator role of Social Capital. Journal on Innovation and Sustainability RISUS, 14(1), 77-86.

Jamil, M. N., Rasheed, A., Maqbool, A., & Mukhtar, Z. (2023). Cross-cultural study the macro variables and its impact on exchange rate regimes. Future Business Journal, 9(1), 9.

JAMIL, M. N., RASHEED, D. A., & MUKHTAR, Z. (2023). Role Of External Finance And Innovation In Achieving Eco-Efficiency And Sustainable Development Goals. Bulletin of Business and Economics (BBE), 12(2), 339-355.

Mickwitz, P., Melanen, M., Rosenström, U., & Seppälä, J. (2006). Regional eco-efficiency indicators–a participatory approach. Journal of Cleaner Production, 14(18), 1603-1611.

Mohsin, M., Ullah, H., Iqbal, N., Iqbal, W., & Taghizadeh-Hesary, F. (2021). How external debt led to economic growth in South Asia: A policy perspective analysis from quantile regression. Economic Analysis and Policy, 72, 423-437.

Monterrey, T. (2000). A Scottish Metamorphosis: Jackie Kay's Trumpet.

Mosha, A. C., Sungirirai, L., Dick, B. A., & Paradza, P. (2022). The paradox of informality and sustainable human settlement in Botswana. Property Management, 40(5), 629-657.

Nations, U. (2015). Transforming our world: The 2030 agenda for sustainable development. New York: United Nations, Department of Economic and Social Affairs.

Persaud, N., & Dagher, R. (2021). The United Nations: 2030 Sustainable Development Goals Agenda The Role of Monitoring and Evaluation in the UN 2030 SDGs Agenda (pp. 1-41): Springer.

Picazo-Tadeo, A. J., Beltrán-Esteve, M., & Gómez-Limón, J. A. (2012). Assessing eco-efficiency with directional distance functions. European Journal of Operational Research, 220(3), 798-809.

Purvis, B., Mao, Y., & Robinson, D. (2019). Three pillars of sustainability: in search of conceptual origins. Sustainability Science, 14, 681-695.

Ramanayake, K. (2019). Critical introduction of Solow growth theory. Journal of Research in Humanities and Social Sciences, 7(1), 43-56.

Sabir, R. I., & Majid, M. B. (2023). Factors Affecting Women Empowerment: A Micro Financing Perspective. Journal of Entrepreneurship and Business Venturing, 3(1).

Scherr, S. J., & Gregg, R. J. (2005). Johannesburg and beyond: the 2002 World Summit on Sustainable Development and the rise of partnership. Geo. Int'l Envtl. L. Rev., 18, 425.

Solow, R. M. (1956). A contribution to the theory of economic growth. The quarterly journal of economics, 70(1), 65-94.

Taylor, M. S., & Copeland, B. R. (2003). Trade, growth and the environment: Citeseer.

Trade, U. N. C. o., & Development. (2018). World investment report 2018: investment and new industrial policies, United Nations Geneva.

Traverso, M., & Nangah Mankaa, R. (2023). The Sustainable Development Goals The Palgrave Handbook of Global Sustainability (pp. 1255-1277): Springer.

WCED, S. W. S. (1987). World commission on environment and development. Our common future, 17(1), 1-91.

Zardoub, A., & Sboui, F. (2023). Impact of foreign direct investment, remittances and official development assistance on economic growth: panel data approach. PSU Research Review, 7(2), 73-89.

Downloads

Published

2024-12-19

Issue

Vol. 15 No. 4 (2024): Journal on Innovation and Sustainability

Section

Papers

License

This Journal is licensed under a Creative Commons Attribution-Non Commercial-No Derivers 4.0 International license.

1.The author (s) authorize the publication of the article in the journal;

2.The author (s) warrant that the contribution is original and unpublished and is not in the process of being evaluated in other journal (s);

3. The journal is not responsible for the opinions, ideas and concepts emitted in the texts, as they are the sole responsibility of its author (s);

4. The editors are entitled to make textual adjustments and to adapt the articles to the standards of publication.