Today’s age is marked by rapid technological advancements which hold revolutionary potential and raise investors’ focus on the environmental impact and ecological footprint of their investments. Given the world’s strive to meet the Sustainable Development Goals (SDGs) and the United Nations 2030 Agenda, it is highly crucial to identify the role technological advancements play in the sustainability debate. Digitalization has gained significant prominence due to its role in promoting sustainability, and enjoys massive acceptance in the financial systems of most economies. Moreover, being in line with the SDG 8 on Sustainable Economic Growth, it is the high time to investigate how to sustain economic growth without compromising either technological adaptation or ecological health. This study uses panel data for 2017-2021 for twenty-seven European Union countries to investigate how financial inclusion, digitalization, financial development, economic growth, and ecological footprint – as well as the interplay between these variables – affect a country’s ability to meet the SDGs. We use fuzzy-set qualitative comparative analysis (FSQCA), a statistical technique, to explore the complex causal relationships between these variables. Our results indicate that economic growth and digitalization promote sustainability through SDG 8. This has important implications for policymakers who should develop policies and programs that are digitalization-centric so that a sustainability can be achieved.

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Digitalization, Finance, and Sustainability: A Configurational Approach Applied to the European Union

  • Aliza Sajjad,
  • Farah Naz,
  • Atia Alam,
  • Casey Jussaume

摘要

Today’s age is marked by rapid technological advancements which hold revolutionary potential and raise investors’ focus on the environmental impact and ecological footprint of their investments. Given the world’s strive to meet the Sustainable Development Goals (SDGs) and the United Nations 2030 Agenda, it is highly crucial to identify the role technological advancements play in the sustainability debate. Digitalization has gained significant prominence due to its role in promoting sustainability, and enjoys massive acceptance in the financial systems of most economies. Moreover, being in line with the SDG 8 on Sustainable Economic Growth, it is the high time to investigate how to sustain economic growth without compromising either technological adaptation or ecological health. This study uses panel data for 2017-2021 for twenty-seven European Union countries to investigate how financial inclusion, digitalization, financial development, economic growth, and ecological footprint – as well as the interplay between these variables – affect a country’s ability to meet the SDGs. We use fuzzy-set qualitative comparative analysis (FSQCA), a statistical technique, to explore the complex causal relationships between these variables. Our results indicate that economic growth and digitalization promote sustainability through SDG 8. This has important implications for policymakers who should develop policies and programs that are digitalization-centric so that a sustainability can be achieved.