Dynamic Effect of External Finance in Achieving Eco-efficiency and Sustainable Development Goals

Abstract

United Nations Agenda 2030 is a call to action for global issues, and sustainability is a challenge that faces everyone. The primary objective of this research is to offer first-hand insights about external financing for sustainability. In order to calculate the impact of foreign financing on eco-efficiency, the Sustainable Development Goals, and the Social, Economic, and Environmental Development of 46 Asian countries between 2000 and 2021, the study used auto-regressive distributed lag (ARDL) models. The estimation's results showed foreign direct investment failed to significantly impact any of the five models over the short- or long-term, remittances, official development assistance, foreign debt, and restriction are useful indicators for advancing social, economic, and environmental development toward eco-efficiency and sustainable development goals. The study also indicated Sustainable development Goals and Social Development are more significant as compared to the other three Models eco-efficiency, economic, and environmental development during the short run and long run. Further indicated South Eastern Asia and East Asia Region Countries have strong requirements for External finance as compared to other Asian regions and external finance had a highly significant relationship with eco-efficiency and Sustainable Development Goals in the short run and long run from 2000 to 2021. Study recommendations are cleared; the Government’s systems should be designed as UN Agenda-2030 that supports the direction toward World Future Sustainability.