THE ROLE OF FINANCIAL DEVELOPMENT, ECONOMIC GROWTH AND FOREIGN TRADE IN SUSTAINABLE DEVELOPMENT: A CASE OF DEVELOPING COUNTRIES

This study examines the relationship between sustainable development and indicators of financial development in emerging market economies. Among the indicators considered for financial development are the effects of financial advancement on sustainable development, national credit to the private sector, market value, foreign trade, and renewable energy. In order to determine the relationship between sustainable development and financial development, panel data analysis will be conducted by utilizing annual data from the period of 2010 to 2019. Between the years 2010 and 2019, financial development, market value, imports and exports in MSCI emerging market countries have positively influenced the sustainable development index. However, increases in domestic credits and renewable energy consumption have led to a decline in the sustainable development index. The consideration of multiple indicators enhances the robustness of representing financial development compared to relying on a single indicator. Within the literature, there is a scarcity of studies concerning sustainable development in developing countries, and there is no existing research that examines the specified indicators within the context of the mentioned countries. The findings of the research will guide the economies of developing countries to become more efficient, sustainable, and resilient to potential crises.