Financial Development and Sustainable Competitiveness in Arctic Region: A Dynamic Panel Data Analysis
Farzan Yahya
Institute of Southern Punjab, Department of Business Administration, Multan, Pakistan (Pakistan)
https://orcid.org/0000-0001-5666-1279
Ghulam Abbas
IBA Sukkur University, Department of Business Administration, Pakistan (Pakistan)
Muhammad Hussain
Institute of Southern Punjab, Department of Business Administration, Multan, Pakistan (Pakistan)
Muhammad Waqas
mwaqas@mail.ustc.edu.cnDepartment of Business Administration, Institute of Southern Punjab, Multan, Pakistan (Pakistan)
https://orcid.org/0000-0003-4098-5994
Abstract
The present study investigates the effect of financial development on sustainable competitiveness and its components (natural capital, resource intensity, and social cohesion) in the Arctic region. We employ bank-based, stock-market based, and composite index to measure financial development. To deal with endogeneity bias, system GMM is utilized. The results show a positive and significant effect of financial development on sustainable competitiveness. The estimates also assert that financial development encourages resource efficiency and social cohesion in the region. In contrast, we find the negative effect of financial development on natural capital. This suggests that overexploitation of natural resources may provide short-term benefits to the local and regional communities but it may threaten the long-term sustainability of the Arctic. Thus, the financial sector should be guided to support financing and investing activities in alternative eco-friendly technologies and ventures for reducing excessive natural resource utilization.
Keywords:
sustainable competitiveness, financial development, social cohesion, resource intensity, natural capitalReferences
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Authors
Farzan YahyaInstitute of Southern Punjab, Department of Business Administration, Multan, Pakistan Pakistan
https://orcid.org/0000-0001-5666-1279
Authors
Ghulam AbbasIBA Sukkur University, Department of Business Administration, Pakistan Pakistan
Authors
Muhammad HussainInstitute of Southern Punjab, Department of Business Administration, Multan, Pakistan Pakistan
Authors
Muhammad Waqasmwaqas@mail.ustc.edu.cn
Department of Business Administration, Institute of Southern Punjab, Multan, Pakistan Pakistan
https://orcid.org/0000-0003-4098-5994
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