Role of the Financial System for Sustainable Development

Le résumé fourni par la source

The challenges posed by industrialization and resource depletion complicate achieving sustainable development, necessitating judicious resource utilization. This study explores how capital allocation, via market mechanisms or financial institutions, impacted sustainable development from 2001 to 2019 in OECD countries using dynamic panel data techniques. Sustainable development, responding to resource depletion, seeks responsible resource management for collective human benefit. Research on financial systems' impact on economic growth reveals contrasting views, emphasizing banks' risk management and markets' efficiency. This study uncovers short-term positive effects of a bank-based system and long-term benefits of a market-based one on sustainable development, emphasizing the nuanced interplay of information asymmetry, innovation, and financing decisions. This research, pioneering in underscoring financial structure's significance in sustainable development, implies policymakers must choose financial systems carefully for sustainable growth.

Ce résumé expose les affirmations des auteurs. BNTIC ne l’interprète pas comme une validation indépendante des résultats.