Asian Economic Sustainability: A Focus on Financial Development, Education, and Governance

Abstract

In order to achieve economic sustainability, Asian nations must coordinate their efforts with the Sustainable Development Goals (SDGs) of the United Nations. This paper explores this vital issue. Asia plays a crucial role in the global economy, which emphasizes how urgent it is to improve economic sustainability in order to promote justice and resilience on a global scale. In order to examine the factors that influence economic sustainability in the area between 2000 and 2021, this study looks into the effects of financial development, education, governance, and labor force dynamics. The study applies a rigorous econometric technique and makes use of panel regression and panel two-stage least squares (2SLS) models to illuminate the various aspects that impact the sustainability of economies in Asia. The empirical results highlight the critical roles that government expenditures on financial development, workforce expansion, and education play in promoting economic sustainability. Moreover, governance metrics positively influence GDP, suggesting that governance plays a critical role in determining long-term economic results. For steady and fair economic growth, this paper recommends giving priority to policies that assist financial development, wise educational investments, and the promotion of good governance. Policymakers can build focused initiatives that support economic sustainability and are in line with the larger global goal for resilient and inclusive development by using the identified determinants and their interaction.