Sustainable Finance Strategies for Inclusive Growth in a Dynamic Global Economy

Abstract

The paper examines the nexus between sustainable finance strategies and inclusive growth in a dynamic global economy, based on seven Sub-Saharan
African countries over the period 2015-2024. Based on the panel regression and dynamic Arellano-Bond GMM methods, the study analyzes the overall effects of Inclusive growth (IG), Institutional Quality (INSQ), Gross Domestic Product growth (GDP), and Technological Infrastructure (TECH) on the
outcomes of dynamic global economy. Descriptive findings indicate that SFS and IG have been moderately advanced with large variations across nations due to inequality between global economy and institutional abilities. The correlation analysis indicates that SFS, INSQ, TECH and dynamic global
economy have a strong and positive relationship with SFS. The validity of the regression model- the absence of a multicollinearity, homoscedastic
residuals, and the absence of serial correlation has been checked by the diagnostic tests and the Hausman test has indicated that the regression model is better estimated using the random Effects model. The evidence of IG shows that the influence is strong and positive on SFS, which means that IG contributes to financial systems transparency and governance. This effect is enhanced by the institutional Quality and the GDP growth has a
positive though lesser effect. The GMM estimation confirms that the improvements of accountability persist over time. The study is of the opinion that Inclusive growth, when integrated into the framework of strong institutions and reinforced by global infrastructures, will contribute to improving financial responsibility and sustainable finance in Sub-Saharan Africa in a significant manner.