Does Foreign Green Finance Inspire Environmental, Social, and Governance Sustainability Metrics? Evidence from MENA Countries

The chapter aims to investigate the relationship between foreign green finance and environmental, social, and governance sustainability in MENA countries over the period from 2011 to 2021. The chapter used diagnostic tests as tests for selecting appropriate estimators. The chapter used Feasible Generalized Least Squares (FGLS), instrumental variables (2SLS) regression, and instrumental variables (IV-GMM) regression for more robustness. The main conclusion shows that there is a significant negative relationship between foreign green finance and environmental, sustainability. Meanwhile, there is a significant positive relationship between foreign green finance and governance and social sustainability in the MENA countries. The main recommendations of this chapter are focused on the importance of formalized strategies and policies to improve transparency, accountability, capacity building, and community involvement in long-term planning to increase foreign green finance and promote positive environmental, social, and governance sustainability.