Financial technology, greenfield investment, and sustainable development: Role of institutional quality

Abstract

This study examines the impact of Financial Technology (FT) and Greenfield Investment (GFI) on Sustainable Development (SD), with a focus on the moderating role of Institutional Quality (IQ) in emerging countries using secondary data for 88 developing countries between 2000 and 2023 from different sources. To estimate the correlations between these variables, the study uses panel regression and two-stage least squares (2SLS). The results indicate that FT and GFI positively and significantly impact SD. The positive impacts of Greenfield investment and financial technology are reduced when the institutional quality is low. This study also applied the robustness tests, which further confirm our mainstream results. These outcomes assist policymakers in developing nations striving for sustainable development by highlighting the pertinent role that improving institutional quality plays in enhancing the advantages of FT and GFI.