Assessing the Impact of Sustainable Finance on Economic Growth: Evidence from India, the UAE, and Oman

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Published: Sep 2, 2024
DOI: https://doi.org/10.29070/cmm0r429
Keywords:
Sustainable Finance, Economic Growth, Foreign Direct Investment (FDI), Structural Equation Modelling (SEM), Corporate Social Responsibility (CSR)

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Authors

Mr. Sameer Ahmed Alvi

Research Scholar, Banasthali Vidyapith, Rajasthan, India

Dr. Nishtha Pareek

Associate Professor, Department of Commerce and Management Banasthali Vidyapith, Rajasthan, India

Abstract

The influence of sustainable finance on foreign direct investment (FDI), economic development, financial market stability, and economic stability in India, the United Arab Emirates, and Oman is investigated in this paper using a quantitative methodology. The study intends to evaluate the impact of sustainable finance on these factors via the use of standardized questionnaires that are distributed among participants in the financial industry. Structural Equation Modeling (SEM) using SPSS and AMOS was used for the investigation, which shows a favorable relationship between sustainable financing and both FDI inflows and economic development. The results show that the model fits the impacts of FDI well (CFI=0.973, RMSEA=0.069) and the effects of economic growth somewhat (CFI=0.946, RMSEA=0.102). Sustainable finance and economic growth are considerably mediated by financial market stability, while the connection between sustainable finance and foreign direct investment (FDI) is significantly moderated by economic stability (interaction path estimate = 0.075, p = 0.035). In order to maximize the advantages of sustainable finance on investment and growth outcomes, the research emphasizes the critical role that financial and economic stability plays.

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Vol. 21 No. 1 (2024): Journal of Advances in Science and Technology (JAST)

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