Research on the Impact of Financial Development and Human Capital on the Sustainable Development Goals in Central and Eastern European Countries (CEECs): Evidence from Econometric Approaches

Yağcılar Gamze Göçmen (), Erdaş Mehmet Levent () and Arslan Zühal ()
Additional contact information
Yağcılar Gamze Göçmen: Department of Banking and Finance, Faculty of Economics and Administrative Sciences, Suleyman Demirel University, Isparta, Türkiye
Erdaş Mehmet Levent: Department of Economics and Finance, Faculty of Business, Akdeniz University, Antalya, Türkiye
Arslan Zühal: Department of Banking and Insurance, Büyükkutlu Faculty of Applied Sciences, Isparta University of Applied Sciences, Isparta, Türkiye

Review of Economic Perspectives, 2025, vol. 25, issue 1, 29-47

Abstract: In this paper, cointegration and causality relationship among human development (HDI), financial development (FDI) and sustainable development (ESG) for five CEECs are investigated. In the study covering the period 1990–2022, Hatemi-J (2008) test was used to investigate cointegration relationships. The results revealed the existence of a long-term relationship between FDI-ESG and HDI-ESG variables in four countries except the Czech Republic. In the causality analysis, Enders and Jones’s (2016) Fourier Granger causality and Gormus et al. (2018) Fourier Toda and Yamamoto tests were first applied. The findings provide strong evidence that human capital has an effect on sustainable development. On the other hand, findings that financial development has an effect on sustainable development were seen only in Romania. However, strong evidence has been obtained in Romania, Hungary and Bulgaria that sustainable development has an impact on financial development. In the last stage, Hatemi-J (2012, 2014) asymmetric causality test, which takes into account the effects of positive and negative cumulative shocks in the causal relationships, was used. In all countries except Poland, causality from positive shocks in HDI to ESG was found. The relationships between FDI and ESG are more limited and complex. This study contributes to the literature by investigating the symmetric and asymmetric relationships between ESG-FDI and ESG-HDI within the scope of CEEC and provides original policy implications based on the findings obtained at the country level.

Keywords: financial globalization; Human Development Index; ESG performance; symmetry and asymmetry relation; Central and Eastern European countries (search for similar items in EconPapers)
JEL-codes: C22 O15 O16 Q01 (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://doi.org/10.2478/revecp-2025-0003 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:vrs:reoecp:v:25:y:2025:i:1:p:29-47:n:1003

DOI: 10.2478/revecp-2025-0003

Access Statistics for this article

Review of Economic Perspectives is currently edited by Antonín Slaný

More articles in Review of Economic Perspectives from Sciendo
Bibliographic data for series maintained by Peter Golla ().