Determinants of sustainable development: Evidence from 12 Asian countries

Abstract

This study examines the factors that determine sustainable development, measured by adjusted net saving, using panel data for 12 Asian countries for the 1990–2014 period. A panel data model is estimated using both random‐effect and fixed‐effect approaches. The Hausman test points to the superiority of the random‐effect model over the fixed‐effect model, which is apparent when the results of the two estimations are compared. The results of the random‐effect estimation show a more significant and better overall fit. These results indicate a positive and significant effect of per capita income and financial development on sustainable development and a negative and significant effect of the inflation rate, natural resource rent, and time. The results suggest that maintaining a proper natural resource balance is necessary for sustainable development.

Investigating the causality between financial inclusion, financial development and sustainable development in Sub‐Saharan Africa economies: The mediating role of foreign direct investment

“…From Adeniyi et al (2015) where financial development is shown to have a mitigation effect on economic growth in Nigeria, it is however inconsistent with studies by Koirala and Pradhan (2020) other studies in the literature (Lenka & Bairwa, 2016;Sarma & Pais, 2011). This goes to show that these two variables capture different aspects of the financial sector in SSA countries.…”

“…Studies by Park and Shin (2017) advocate that financial development is a good ingredient for reducing income inequality up to a certain threshold and gives opportunity for a more sustainable society. Koirala and Pradhan (2020) examine the factors that determine sustainable development, measured by adjusted net saving, using panel data for 12 Asian countries over a 25 year period, they argue that financial development is a major tool for sustainable development and that it also has a negative effect on inflation and natural resource rent thereby aiding a balance in natural resource exploitation. Pardi, Salleh and Nawi (2017) while examining the determining factors that increase adjusted net savings (ANS) as a measure of sustainable development in Malaysia revealed that inflation rate, financial development, per capita income and natural resource rent have a strong impact on sustainable development both in the short and long term.…”

Adjusted Net Savings of CEE and Baltic Nations in the Context of Sustainable Economic Growth: A Panel Data Analysis

“…It is designed to measure real savings in production and natural and human capital after adjusting for the depletion of natural sources (Schepelmann et al 2010). There are multiple factors that influence a nation's level of sustainable development-proxied by Adjusted Net Savings-among which are per capita income, financial development, inflation rate, natural resource rent and banking system stability (Greasley et al 2014;Koirala and Pradhan 2019;Ntarmah et al 2019;Rudenko-Sudarieva and Shevchenko 2019).…”

Nexus of regional integration, socioeconomic determinants and sustainable development in belt and road initiative countries

“…Adjusted net saving is formally known as genuine saving, consisting of social, economic, and environmental factors. For measurement of dependent variable-sustainable development, we used the index of adjusted net saving, which has been extensively accepted as an inclusive measure based on all three dimensions of sustainable development [ 15 – 17 , 27 , 28 , 59 – 62 ].…”

“…The theoretical framework is based on the extended version of the Solow standard economic growth model. By following the Cobb-Douglas function of country's production output at the national level and in accordance with the studies of Hess [15], Pardi, Salleh [16] and Koirala and Pradhan [28], the theoretical model can be written as follows:…”