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.cn
Department 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 capital

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Published
2022-01-03

Cited by

Yahya, F., Abbas, G., Hussain, M., & Waqas, M. (2022). Financial Development and Sustainable Competitiveness in Arctic Region: A Dynamic Panel Data Analysis. Problemy Ekorozwoju, 17(1), 267–278. https://doi.org/10.35784/pe.2022.1.24

Authors

Farzan Yahya 

Institute of Southern Punjab, Department of Business Administration, Multan, Pakistan Pakistan
https://orcid.org/0000-0001-5666-1279

Authors

Ghulam Abbas 

IBA Sukkur University, Department of Business Administration, Pakistan Pakistan

Authors

Muhammad Hussain 

Institute of Southern Punjab, Department of Business Administration, Multan, Pakistan Pakistan

Authors

Muhammad Waqas 
mwaqas@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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