Abstract
In this paper, we empirically examine the association between sustainable development, adjusted net savings, financial development, economic growth and resources rent, using panel ordinary least squares technique, and panel generalized method of moments for a yearly panel data of three South Asia emerging economies, during the period of study from 1990 to 2020. We observed positive and significant effect of sustainable development goal index, financial development, and economic growth on the adjusted net saving, while the inflation rate and natural resource rent have negative and significant effect on sustainable development in South Asian emerging countries.
Similar content being viewed by others
Notes
According to the World Commission on Environment and Development (Brundtland Commission) in, 1987.
South Asian Emerging Economies are Bangladesh, India and Pakistan.
The sustainable development index (SDI) measures the ecological efficiency of human development, recognizing that development must be achieved within planetary boundaries. It was created to update the Human Development Index (HDI) for the ecological realities of the Anthropocene. https://www.sustainabledevelopmentindex.org/
The Hartwick rule was formulated for a production economy where consumption at any point of time depends not only on the resource extraction but also on the stock of man-made capital available at that point in time.
References
Aksoy, F., & Bayram Arlı, N. (2019). Evaluation of sustainable happiness with sustainable development goals: Structural equation model approach. Sustainable Development.
Anwar, S., Shabir, G., & Hussain, Z. (2011). Relationship between financial sector development and sustainable economic development: Time series analysis from Pakistan. International Journal of Economics and Finance, 3(1), 262–271.
Arrow, K. J., Dasgupta, P., Goulder, L. H., Mumford, K. J., & Oleson, K. (2012). Sustainability and the measurement of wealth. Environment and Development Economics, 17(3), 317–353.
Bakirtas, I., Bayrak, S., & Cetin, A. (2014). Economic growth and carbon emission: A dynamic panel data analysis. European Journal of Sustainable Development, 3(4), 91–91.
Boos, A. (2015). Genuine savings as an indicator for “weak” sustainability: Critical survey and possible ways forward in practical measuring. Sustainability, 7(4), 4146–4182.
Boos, A., & Holm-Müller, K. (2013). The relationship between the resource curse and genuine savings: Empirical evidence. Journal of Sustainable Development, 6(6), 59.
Carbonnier, G., & Wagner, N. (2011). Oil, gas and minerals: The impact of resource-dependence and governance on sustainable development. ISS Staff Group 1: Economics of Sustainable Development.
Daly, H. E. (1990). Toward some operational principles of sustainable development. Ecological Economics, 2(1), 1–6.
Ekperiware, M. C., Olatayo, T. O., & Egbetokun, A. A. (2017). Human capital and sustainable development in Nigeria: How can economic growth suffice environmental degradation? Economics Discussion Papers, No 2017–29. Kiel Institute for the World Economy. http://www.economics-ejournal.org/economics/discussionpapers/2017–29 Page, 2(2).
Gnègnè, Y. (2009). Adjusted net saving and welfare change. Ecological Economics, 68(4), 1127–1139.
Gujarati, D. N., & Porter, D. (2009). Basic econometrics Mc Graw-Hill International Edition.
Güney, T. (2017). Governance and sustainable development: How effective is governance? The Journal of International Trade & Economic Development, 26(3), 316–335.
Hickel, J. (2020). The sustainable development index: Measuring the ecological efficiency of human development in the anthropocene. Ecological economics, 167, 106331.
Jamel, L., & Maktouf, S. (2017). The nexus between economic growth, financial development, trade openness, and CO2 emissions in European countries. Cogent Economics & Finance, 5(1), 1341456.
Kaimuri, B., & Kosimbei, G. (2017). Determinants of sustainable development in Kenya. Journal of Economics and Sustainable Development, 8, 17–36.
Koirala, B. S., & Pradhan, G. (2019). Determinants of sustainable development: Evidence from 12 Asian countries. Sustainable Development.
López, R. E., & Figueroa, B, E. (2016). On the nexus between fiscal policies and sustainable development. Sustainable Development, 24(4), 201–219.
Pardi, F., & Salleh, A. M. (2015). Determinants of sustainable development in Malaysia: A VECM approach of short-run and long-run relationships. American Journal of Economics, 5(2), 269–277.
Phimphanthavong, H. (2014). The determinants of sustainable development in Laos. International Journal of Academic Research in Management (IJARM), 3(1).
Sutradhar, S. R. (2020). The impact of remittances on economic growth in Bangladesh, India, Pakistan and Sri Lanka. International Journal of Economic Policy Studies, 14(1), 275–295.
Tchouassi, G. (2012). Does gender equality work for sustainable development in central Africa countries? Some empirical lessons. European Journal of Sustainable Development, 1(3), 383.
Ulucak, R., & Kassouri, Y. (2020). An assessment of the environmental sustainability corridor: Investigating the non‐linear effects of environmental taxation on CO2 emissions. Sustainable Development.
Waqas, M., Fatima, N., Khan, A., & Arif, M. (2017). Determinants of non-performing loans: A comparative study of Pakistan, India, and Bangladesh. International Journal of Finance & Banking Studies (2147–4486), 6(1), 51–68.
World Bank. (2019). South Asia economic focus, Fall 2019: Making (de)centralization work. Washington, DC: World Bank: world Bank Retrieved from https://openknowledge.worldbank.org/handle/10986/32515
World Bank Group. (2016). World development report 2016: digital dividends. World Bank Publications.
Author information
Authors and Affiliations
Corresponding author
Additional information
Publisher's Note
Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.
Rights and permissions
About this article
Cite this article
Din, S.U., Khan, M.Y., Khan, M.J. et al. Nexus Between Sustainable Development, Adjusted Net Saving, Economic Growth, and Financial Development in South Asian Emerging Economies. J Knowl Econ 13, 2372–2385 (2022). https://doi.org/10.1007/s13132-021-00818-6
Received:
Accepted:
Published:
Issue Date:
DOI: https://doi.org/10.1007/s13132-021-00818-6
Keywords
- Adjusted net saving
- Economic growth
- Emerging economies
- Financial development
- Natural resources rent
- Sustainable development