The investigation of the impact of investment sources for sustainability on country’s sustainable development. A case of Baltic States for the period 2003–2017

Indrė Lapinskaitė,Patrikas Janulevičius

doi:10.3846/cibmee.2019.040

Abstract

Purpose – is to analyse the different investment sources for sustainable development of a country and reveal the interaction between investment sources for sustainability and a country's sustainable development. Research methodology – analysis of scientific sources, collection and systematization of statistical data, a method for sustainable development index calculation, correlation regression analysis. Findings – each analysed country's progress of sustainable development is expressed as integrated sustainable development index revealed that all analysed countries are gradually increasing their sustainable development results. All three analysed investment sources are strongly affecting countries sustainable development, and stochastic relationship exists between variables. Research limitations – statistical data with incomplete time series, for which not all the most important sustainable development indicators were selected. The case of three Baltic countries (Lithuania, Latvia, and Estonia) is used for the period 2003–2017. The three main investment sources for sustainable development of a country: assignations of the state budget, EU structural funds, and direct investments, are chosen for the research. Practical implications – results can be used in calculations for other countries sustainable development and investments interactions. They can be used to evaluate the impact of the different source and contribute to the modelling of their use. Originality/Value – this article is unique because it reveals the interaction of multiple sustainability sources, in terms of investment sources for sustainability and the results of a country's sustainable development. These sources can be supplemented and adapted to other countries (at least in developed countries EU level). Keywords: sustainability, sustainable development indicators, integrated sustainable development index, assignation of the budget, EU funds, direct investment

Highlights

The concept of sustainable development (SD) was formed on the basis of the United Nations Conference on Environment and Development held in Rio de Janeiro in 1992, where 179 countries attended at the United Nations conference under the topic Environment and Development
From the beginning of the concept formation until 2012, when at the United Nations Conference on Sustainable Development (Rio+20, 2012) “governments decided to establish an intergovernmental process under the General Assembly to prepare options on a strategy for sustainable development financing” (The future we want, 2012), there was no indication about clear investment sources in SD implementation
Despite the Addis Ababa Action Agenda (AAAA, 2015) which aim was to provide the framework to finance defined global ambitions presented as 17 Sustainable Development Goals (SDGs) (Transforming our world: the 2030 Agenda for Sustainable Development, 2015), there is an official opinion that the situation for SD financing should be examined through a broader lens and urgently needs to be re-focused, stating clear opinion that "Financing for sustainable development is not a cost; it is an investment” (OECD, 2018)

Summary

Introduction

The concept of sustainable development (SD) was formed on the basis of the United Nations Conference on Environment and Development held in Rio de Janeiro in 1992, where 179 countries attended at the United Nations conference under the topic Environment and Development. The world has moved towards the 21st century and decided to actively achieve sustainable development by signing the Agenda of “United Nations Millennium Declaration” (2000). In this agenda for the first time were formed eight general goals. From the beginning of the concept formation until 2012, when at the United Nations Conference on Sustainable Development (Rio+20, 2012) “governments decided to establish an intergovernmental process under the General Assembly to prepare options on a strategy for sustainable development financing” (The future we want, 2012), there was no indication about clear investment sources in SD implementation. Despite the Addis Ababa Action Agenda (AAAA, 2015) which aim was to provide the framework to finance defined global ambitions presented as 17 Sustainable Development Goals (SDGs) (Transforming our world: the 2030 Agenda for Sustainable Development, 2015), there is an official opinion that the situation for SD financing should be examined through a broader lens and urgently needs to be re-focused, stating clear opinion that "Financing for sustainable development is not a cost; it is an investment” (OECD, 2018)

Objectives

Methods

Conclusion