Impact of Financial Inclusion and ESG on the Sustainable Growth of the Nation: Moderating Role of Poverty

Abstract

The literature has a strong foundation for the contributions that financial inclusion (FI) and environment social governance (ESG) provide to the sustainable growth (SG) of the nation. This study looks at the relationships between FI and ESG with SG through moderating role of poverty in the nation. The study performs a quantitative analysis by utilizing the panel data regression model on 140 countries with a time period of nine years, that is 2011–2019. In this study, models have been tested for consistency with FE (fixed effect) or RE (random effect). In it, ATMs are used as a proxy of FI, DW_EG is a proxy of statistical performance indicators (SPI), Agr_Land are used as a proxy of Environment Social and Governance (ESG) and Pov_surv are used as a proxy of poverty. GDP_grw are used as a proxy of GDP growth (GDP per capita growth) and RP are used as a proxy of rural population. This study establishes three models, that is, Models 1, 2 and 3. The empirical findings demonstrate a significant linkage between ESG, FI and SG, whereas poverty is found insignificant. Further research confirms that the development of careful co-curation of ICT infrastructure, FI programmes and economic growth strategies is necessary to promote nation’s SG.