Maqola

Financial development, resource richness, eco-innovation, and sustainable development: Does geopolitical risk matter?

Mahmood AhmadBusiness School, Shandong University of Technology, Zibo, 255000, China. Electronic address: [email protected]Zahoor AhmedAdnan Kassar School of Business, Lebanese American University, Beirut, 1102-2801, Lebanon; Department of Business Administration, Faculty of Economics, Administrative and Social Sciences, Bahçeşehir Cyprus University, Nicosia, Türkiye; UNEC Research Methods Application Center, Azerbaijan State University of Economics (UNEC), Istiqlaliyyat Str. 6, Baku 1001, Azerbaijan. Electronic address: [email protected]Rafael AlvaradoEsai Business School, Universidad Espíritu Santo, Samborondon, 091650, Ecuador. Electronic address: [email protected]N. HussainFaculty of Economics and Business, University of Groningen, Groningen, the Netherlands; Faculty of Finance and Accounting, Prague University of Economics and Business, Praha, Czech Republic. Electronic address: [email protected]Sana Akbar KhanLyon Catholic University, ESDES, 10, Place des Archives, Lyon 2, France. Electronic address: [email protected]

2023en

ABI

Annotatsiya

Financial development and geopolitical risks can significantly affect sustainable development. However, the roles of these factors in sustainable development are rarely investigated. Thus, this study takes into account the role of geopolitical risk while exploring the effects of financial development, natural resource rents, and eco-innovation on sustainable development in the Organization for Economic Co-operation and Development (OECD) countries. To this end, yearly data from 1990 to 2019 is analyzed using advanced econometric tests. The Common Correlated Effects Mean Group (CCEMG) results indicate that financial development and eco-innovation are significantly and positively related to sustainable development. Natural resource rents have a detrimental impact on sustainable development which confirms the presence of the resource curse hypothesis in OECD countries. Furthermore, the results revealed that controlling geopolitical risk is useful in fostering sustainable development. Lastly, the panel Granger causality test unveiled one-way causality from financial development, eco-innovation, natural resource rents, and geopolitical risk to sustainable development. Moreover, causalities are found from geopolitical risk to financial development, eco-innovation and natural resources. These findings suggest that OECD countries should prioritize financial development and eco-innovation policies for sustainable development while mitigating the negative effects of natural resource rents. The geopolitical risk can harm sustainable development, so policymakers should promote international cooperation and risk-sharing.

Hali tarjima qilinmagan

Identifikatorlar

DOI: 10.1016/j.jenvman.2023.119824

Iqtiboslar va manbalar

5 ta iqtibos0 ta foydalanilgan manba

Koʻrsatkichlar — AkademScholar