Global Financial Crises, Economic and Financial Systems, and Sustainable Development Goals

Abstract

The first essay explores how global financial crises impact both developed and developing countries, using a comparative analytical approach. It covers 30 nations (15 developed, 15 developing) from 1990 to 2022 and employs econometric methods including Pooled Ordinary Least Squares (POLS) and Fixed Effects Panel Least Squares (PLS). The findings reveal that while both groups are affected, developing countries face a more significant impact during crisis periods. Central government debt and trade tend to rise in both groups during crises, while political stability declines. However, developing countries experience sharper declines in lending/borrowing ratios and foreign direct investment (FDI). The study emphasizes the importance of tailored policy responses for different economic groups and highlights the need for better crisis preparedness. It concludes that addressing these disparities is essential for strengthening economic resilience in future financial shocks. The second essay focuses on environmental sustainability and economic growth across 34 OECD countries from 1995 to 2022. It investigates how Environmental Policy Stringency (EPS), Green Energy Transition (GT), and Financial Technology (FT) influence economic growth, especially under the moderating roles of governance quality and transport infrastructure. Using second- generation econometric techniques—such as Dynamic Common Correlated Effects (DCCE), Feasible Generalized Least Squares (FGLS), and co-integration tests—the study confirms that EPS and GT positively affect economic growth when supported by good governance and strong infrastructure. FT also shows a strong positive impact, particularly when governance quality is high. The findings are robust across multiple testing models, reinforcing that combining clean energy policies with effective institutions and infrastructure leads to sustainable development. The study contributes to SDG 13 (Climate Action) by providing evidence-backed policy recommendations for researchers, investors, and policymakers to strengthen green growth and sustainability.