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Do Macroeconomic, Financial and Technological Drivers Improve Sustainable Development in G10 Countries?

Author

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  • Zeynep Ezanoglu
  • Gamze Gocmen Yagcilar
  • Mehmet Levent Erdas
  • Gokcen Sayar

Abstract

Environmental sustainability and the strive to achieve net-zero carbon emissions have become one of the most important policies for every country. In recent years, with the increasing awareness of sustainable development, sustainable development indicators have emerged as a key driver in achieving environmental sustainability. In this context, it is important to conduct research aimed at achieving sustainable development and to provide policy suggestions in this direction. To this end, the aim of this research is to determine the impact of technological, renewable energy, capital formation, foreign direct investment and economic growth on economic, environmental, social and corporate governance (EESG) performances in G10 countries. The study employed a two-step system GMM to analyse the data from 2000 to 2022. The findings indicate that all variables except foreign direct investment significantly enhance EESG scores and reduce environmental degradation in the G10 countries. According to the results, it is seen that macroeconomic, financial and technological factors play significant roles in reducing the ecological footprint. These findings enrich the literature on EESG performance and provide valuable insights for policymakers to improve EESG performance to achieve environmental quality and to reduce ecological footprint.

Suggested Citation

  • Zeynep Ezanoglu & Gamze Gocmen Yagcilar & Mehmet Levent Erdas & Gokcen Sayar, 2026. "Do Macroeconomic, Financial and Technological Drivers Improve Sustainable Development in G10 Countries?," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 4, pages 3-21.
    • Handle: RePEc:bas:econst:y:2026:i:4:p:3-21
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    JEL classification:

    • F62 - International Economics - - Economic Impacts of Globalization - - - Macroeconomic Impacts
    • G31 - Financial Economics - - Corporate Finance and Governance - - - Capital Budgeting; Fixed Investment and Inventory Studies
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models

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