JOURNEY TOWARDS SUSTAINABLE DEVELOPMENT: THE IMPACT OF INCLUSIVE DIGITAL FINANCE AND THE ROLE OF FINANCIAL DEVELOPMENT
DOI:
https://doi.org/10.61591/jslhu.21.574Keywords:
Sustainable Development, Financial Inclusion, Digital Financial Inclusion, Financial Development, Climate ChangeAbstract
Climate change is no longer a challenge faced by individual countries but a global responsibility. In the face of the risks posed by the "brown economy," sustainable development (SD) has become a mandatory requirement for all economies. Inclusive digital finance (IDF) is a crucial tool in the strategy towards SD, and its impact on SD will depend on the level of financial development. This study assesses the impact of IDF on SD in 117 countries from 2004 to 2022, using Bayesian regression methods. The results show that IDF has a negative impact on SD, but when combined with financial development (IDF*FD), this impact turns positive. The combination of financial development and IDF not only enhances access to financial services but also strengthens financial policies and infrastructure, helping to reduce inequality and promote financial stability. Based on these findings, we recommend that countries prioritize financial development before implementing IDF strategies.
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