Global financial integration, governance-by-technology, and green growth

Abstract

This study determines the influence of governance-by-technology (including the e-governance index and governance index) and socio-cultural factors (including sociocultural integration and household consumption per-capita) on inclusive green growth (IGG) with the moderating effect of global financial integration. Government expenditures and poverty were used as control variables. This study used the data of 64 Belt and Road initiative (BRI) partner countries from 2005 to 2020, which was analysed using the two-step system GMM (the generalized method of moments). The results was analysed using the two-step system GMM (the generalized method of moments) and validated through the D-K regression, 2SLS and dynamic fixed-effect robustness methods. Outcomes indicated that global financial integration positively moderates the relationship between governance-by-technology and IGG. Therefore, it can be stated that global financial integration, e-governance index, governance index, and sociocultural integration endorse IGG. The findings of this study contribute to the existing literature by providing new insights into inclusive green development, governance, technology, and socio-cultural integration. This study also encourages policymakers and institutions to focus on governance, e-governance, socio-cultural factors, and financial integration to boost inclusive green growth in the BRI region.

Keywords: Socio-cultural integration, Financial integration, E-governance index, Inclusive green growth (IGG).