Financial, markets, impact of environmental stability on economic development and sustainable development goals, evidence from developed and emerging countries
DOI:
https://doi.org/10.23925/2179-3565.2024v15i3p78-97Palabras clave:
Foreign Finance, SDGs, Environmental policy, Market-Economic SustainabilityResumen
The study seeks to investigate the developed and emerging countries forecasting the financial business market, environmental strategy and impact on sustainable development Goals and the country's economic development from 1991 to 2021. Annually date of Stock Market Index, exchange rate index, Sustainable development index, eco-efficiency and Countries GDP of developed countries, i.e. UK, USA, Canada, Australia, Japan, Germany, France and emerging countries, i.e. Brazil, Malaysia, Thailand, Philippines, China, Indonesia, India, and Pakistan has been considered as sample data for this study. Unit root test (ADF) for stationary test, Johansen’s Co-integration test, Granger Causality, GMM (panel data) applied to test the short run/long-run impact, association, and behavior of variables. Models 1& 2 result of finance sustainability with Stock Market Index, exchange rate index, SDGs ~ GDP, and eco-efficiency indicates highly significant and asymmetrical relationships exist with countries growth as similar with Models 3 & 4 SDGs. UK, France in developed markets and India, Thailand and Malaysia in emerging countries markets high influencing potential. Meanwhile, Australia and USA in developed and China, Indonesia, and Pakistan Markets in emerging have more space for investor. The Robustness test validates the finding of study. Financial sustainability implication and recommendation are cleared for investors; forecast market behavior, financing efficiency, investment diversification, multi corporations and exchange management have make significant investment decision. Further, these finding helps policy makers and regulatory authorities to design appropriate finance strategies for market-economic sustainability.
Citas
Abubakar, I. R. and M. S. Alshammari (2023). Urban planning schemes for developing low-carbon cities in the Gulf Cooperation Council region. Habitat International. 138: 102881.
Afolabi Ibikunle, J. et al. (2022). External financing for inclusive growth in lower-middle income West African countries: foreign direct investment versus official development assistance. International Journal of Public Administration. 1-11.
Ajaz, T. et al. (2017). Stock prices, exchange rate and interest rate: evidence beyond symmetry. Journal of Financial Economic Policy.
Al-Zararee, A. N. and I. E. N. Ananzeh (2014). The relationship between macroeconomic variables and stock market returns: A case of Jordan for the period 1993-2013. International Journal of Business and Social Science. 5(5).
Azeez, K. and M. Begum. (2009). International remittances: A source of development finance. International NGO Journal. 4(5): 299-304.
Bahmani-Oskooee, M. and A. Sohrabian. (1992). Stock prices and the effective exchange rate of the dollar. Applied Economics. 24(4): 459-464.
Bhattacharya, M. et al. (2018). Remittances and financial development: empirical evidence from heterogeneous panel of countries. Applied Economics. 50(38): 4099-4112.
Bird, G. and Y. Choi. (2020). The effects of remittances, foreign direct investment, and foreign aid on economic growth: An empirical analysis. Review of Development Economics. 24(1): 1-30.
Bucevska, V. (2022). Impact of remittances on economic growth: Empirical evidence from South-East European countries. The South East European Journal of Economics and Business. 17(1): 79-94.
Bucevska, V. and A. Naumoski. (2023). Remittances, FDI and economic growth: the case of South-East European countries. Post-Communist Economies. 35(2): 179-209.
Buch, C. M. and A. Kuckulenz. (2010). Worker remittances and capital flows to developing countries. International Migration. 48(5): 89-117.
Cazachevici, A. et al. (2020). Remittances and economic growth: A meta-analysis. World development. 134: 105021.
Chen, S. S. and C. C. Hsu. (2019). Do stock markets have predictive content for exchange rate movements? Journal of Forecasting. 38(7): 699-713.
Cubeddu, L. et al. (2023). External financing risks: How important is the composition of the international investment position? Journal of International Money and Finance. 131: 102772.
Curcuru, S. E. et al. (2014). Uncovered equity parity and rebalancing in international portfolios. Journal of International Money and Finance. 47: 86-99.
Darrat, A. F. and T. K. Mukherjee. (1986). The behavior of the stock market in a developing economy. Economics Letters. 22(2-3): 273-278.
Engle, R. F. and C. W. Granger (1987). Co-integration and error correction: representation, estimation, and testing. Econometrica: journal of the Econometric Society. 251-276.
Fama, E. F. (1981). Stock returns, real activity, inflation, and money. The American economic review. 71(4): 545-565.
Gelman, M. et al. (2015). Real financial market exchange rates and capital flows. Journal of International Money and Finance. 54: 50-69.
Ghosh, A. R. et al. (1997). Does the Nominal Exchange Rate Regime Matter? National Bureau of Economic Research, working paper no. 5864.
Gibberd, J. T. (2022). Social and economic sustainability targets in construction.
Greene, W. H. (2008). The econometric approach to efficiency analysis. The measurement of productive efficiency and productivity growth. 1(1): 92-250.
Abubakar, I. R. and M. S. Alshammari (2023). Urban planning schemes for developing low-carbon cities in the Gulf Cooperation Council region. Habitat International. 138: 102881.
Afolabi Ibikunle, J. et al. (2022). External financing for inclusive growth in lower-middle income West African countries: foreign direct investment versus official development assistance. International Journal of Public Administration. 1-11.
Ajaz, T. et al. (2017). Stock prices, exchange rate and interest rate: evidence beyond symmetry. Journal of Financial Economic Policy.
Al-Zararee, A. N. and I. E. N. Ananzeh (2014). The relationship between macroeconomic variables and stock market returns: A case of Jordan for the period 1993-2013. International Journal of Business and Social Science. 5(5).
Azeez, K. and M. Begum. (2009). International remittances: A source of development finance. International NGO Journal. 4(5): 299-304.
Bahmani-Oskooee, M. and A. Sohrabian. (1992). Stock prices and the effective exchange rate of the dollar. Applied Economics. 24(4): 459-464.
Bhattacharya, M. et al. (2018). Remittances and financial development: empirical evidence from heterogeneous panel of countries. Applied Economics. 50(38): 4099-4112.
Bird, G. and Y. Choi. (2020). The effects of remittances, foreign direct investment, and foreign aid on economic growth: An empirical analysis. Review of Development Economics. 24(1): 1-30.
Bucevska, V. (2022). Impact of remittances on economic growth: Empirical evidence from South-East European countries. The South East European Journal of Economics and Business. 17(1): 79-94.
Bucevska, V. and A. Naumoski. (2023). Remittances, FDI and economic growth: the case of South-East European countries. Post-Communist Economies. 35(2): 179-209.
Buch, C. M. and A. Kuckulenz. (2010). Worker remittances and capital flows to developing countries. International Migration. 48(5): 89-117.
Cazachevici, A. et al. (2020). Remittances and economic growth: A meta-analysis. World development. 134: 105021.
Chen, S. S. and C. C. Hsu. (2019). Do stock markets have predictive content for exchange rate movements? Journal of Forecasting. 38(7): 699-713.
Cubeddu, L. et al. (2023). External financing risks: How important is the composition of the international investment position? Journal of International Money and Finance. 131: 102772.
Curcuru, S. E. et al. (2014). Uncovered equity parity and rebalancing in international portfolios. Journal of International Money and Finance. 47: 86-99.
Darrat, A. F. and T. K. Mukherjee. (1986). The behavior of the stock market in a developing economy. Economics Letters. 22(2-3): 273-278.
Engle, R. F. and C. W. Granger (1987). Co-integration and error correction: representation, estimation, and testing. Econometrica: journal of the Econometric Society. 251-276.
Fama, E. F. (1981). Stock returns, real activity, inflation, and money. The American economic review. 71(4): 545-565.
Gelman, M. et al. (2015). Real financial market exchange rates and capital flows. Journal of International Money and Finance. 54: 50-69.
Ghosh, A. R. et al. (1997). Does the Nominal Exchange Rate Regime Matter? National Bureau of Economic Research, working paper no. 5864.
Gibberd, J. T. (2022). Social and economic sustainability targets in construction.
Greene, W. H. (2008). The econometric approach to efficiency analysis. The measurement of productive efficiency and productivity growth. 1(1): 92-250.
Hau, H. and H. Rey (2006). Exchange rates, equity prices, and capital flows. The Review of Financial Studies. 19(1): 273-317.
He, J. et al. (2023). The impact of environmental regulation on regional economic growth: A case study of the Yangtze River Economic Belt, China. Plos one. 18(9): e0290607.
Husain, F. and T. Mahmood. (2001). The stock market and the economy in Pakistan. The Pakistan Development Review. 107-114.
Jamil, M. N. (2022). Impact the choice of exchange rate regime on country economic growth: which anchor currency leading the 21st century. Journal of Environmental Science and Economics. 1(1): 18-27.
Jamil, M. N. et al. (2023). Exploring the role of stock exchanges and exchange rates for sustainable economic development: a cross culture study of emerging and developed markets. Bulletin of Business and Economics (BBE). 12(2): 308-320.
Jamil, M. N. et al. (2023). Exploring the role of stock exchanges and exchange rates for sustainable economic development: a cross culture study of emerging and developed markets. Bulletin of Business and Economics (BBE) 12(2): 308-319.
Jamil, M. N. et al. (2023). Cross-cultural study the macro variables and its impact on exchange rate regimes. Future Business Journal. 9(1): 9.
Jamil, M. N. et al. (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.
Jamil, M. N. et al. (2023). General diagnostic test for sustainable economic growth multi dependent panels: a study of pak-us trade. Bulletin of Business and Economics (BBE). 12(2): 332-338.
Kheng, V. et al. (2023). The role of remittances and FDI for the current account: The case of Cambodia. Available at SSRN 4592060.
Khurshid, N. et al. (2023). Analyzing the Impact of Foreign Capital Inflows and Political Economy on Economic Growth: An Application of Regime Switching Model. Economies. 11(7): 181.
Lee, B. S. (1992). Causal relations among stock returns, interest rates, real activity, and inflation. The Journal of Finance. 47(4): 1591-1603.
Levine, R. (2003). More on finance and growth: more finance, more growth? Review-Federal Reserve Bank of Saint Louis. 85(4): 31-46.
Levy-Yeyati, E. and F. Sturzenegger. (2005). Classifying exchange rate regimes: Deeds vs. words. European Economic Review. 49(6): 1603-1635.
Li, L. and C. Yang. (2023). How Does Venture Capital Affect Ecological Efficiency: Instrumental Variable Evidence Based on Government Guidance Fund. Available at SSRN 4511901.
Makina, D. and M. R. Magwedere. The Remittances–Development Debate in Africa. Routledge Handbook of Contemporary African Migration. Routledge: 231-245.
Makina, D. and M. R. Magwedere. (2023). Remittances–development debate. Routledge Handbook of Contemporary African Migration.
Mashayekh, S. et al. (2011). Impact of macroeconomic variables on stock market: The case of Iran. 2nd International Conference on Business and Economic Research (2nd ICBER 2011) Proceeding. Conference Master Resources.
Mbagwu, O. N. (2023). External financing and investment in firms in Nigeria. Finance & Accounting Research Journal. 5(4): 65-77.
Mukherjee, T. K. and A. Naka. (1995). Dynamic relations between macroeconomic variables and the Japanese stock market: an application of a vector error correction model. Journal of financial Research. 18(2): 223-237.
Nasseh, A. and J. Strauss. (2000). Stock prices and domestic and international macroeconomic activity: a cointegration approach. The quarterly review of economics and finance. 40(2): 229-245.
Nishat, M. et al. (2004). Macroeconomic factors and the Pakistani equity market [with Comments]. The Pakistan Development Review. 619-637.
Nowbutsing, B. M. and M. Odit. (2009). Stock market development and economic growth: The case of Mauritius. International Business & Economics Research Journal (IBER). 8(2).
Nwaogu, U. G. and M. J. Ryan. (2015). FDI, foreign aid, remittance and economic growth in developing countries. Review of Development Economics.19(1): 100-115.
Osano, H. M. and P. W. Koine. (2016). Role of foreign direct investment on technology transfer and economic growth in Kenya: a case of the energy sector. Journal of Innovation and Entrepreneurship. 5: 1-25.
Oskooe, S. A. (2010). Emerging stock market performance and economic growth. American Journal of Applied Sciences. 7(2): 265.
Pagano, M. (1993). Financial markets and growth: an overview. European Economic Review. 37(2-3): 613-622.
Patel, A. et al. (2019). Measuring deprivations in the slums of Bangladesh: implications for achieving sustainable development goals. Housing and Society. 46(2): 81-109.
Patra, B. and N. Sethi. (2023). Financial development and growth nexus in Asian countries: mediating role of FDI, foreign aid and trade. International Journal of Social Economics.
Qamruzzaman, M. (2023). Does financial innovation foster financial inclusion in Arab world? examining the nexus between financial innovation, FDI, remittances, trade openness, and gross capital formation. Plos one 18(6): e0287475.
Rahman, Z. U. et al. (2023). A new look at the remittances-FDI-energy-environment nexus in the case of selected Asian nations. The Singapore Economic Review. 68(01): 157-175.
Ratha, D. and S. Mohapatra (2007). Increasing the macroeconomic impact of remittances on development. World Bank. 3(1): 178-192.
Sharma, G. D. and M. Mahendru. (2010). Impact of macro-economic variables on stock prices in India. Global Journal of Management and Business Research. 10(7).
Shera, A. and D. Meyer. (2013). Remittances and their impact on Economic Growth. Periodica Polytechnica Social and Management Sciences. 21(1): 3-19.
Subhan, M., et al. (2023). Impact of exchange rate, oil prices, and stock market: evidence from pakistan stock exchange (time series data analysis). Bulletin of Business and Economics (BBE). 12(2): 93-103.
Traverso, M. and R. Nangah Mankaa. (2023). The Sustainable Development Goals. The Palgrave Handbook of Global Sustainability, Springer: 1255-1277.
Unceta, K. et al. (2010). Financing development: ODA versus FDI and Remittances in the most vulnerable Countries. Current Research 9: 165-186.
Witt, U. (2016). How evolutionary is Schumpeter's theory of economic development? Rethinking Economic Evolution, Edward Elgar Publishing.
Yang, M., et al. (2023). Total quality management: main obstacles and countermeasures of implementing in pakistan. PalArch's Journal of Archaeology of Egypt/Egyptology. 20(2): 194-204.
Yoo, S. H. and B. Woo. (2023). Types of foreign finance and slum upgrading: How do official development assistance, foreign direct investment, and foreign remittances affect slum upgrading across regime types in developing countries? Habitat International. 139: 102898.
Zardoub, A. and F. Sboui. (2023). Impact of foreign direct investment, remittances and official development assistance on economic growth: panel data approach. PSU Research Review. 7(2): 73-89.
Descargas
Publicado
Número
Sección
Licencia
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.
