FROM GREEN GOALS TO GREY RISKS: HOW ESGUI SHAPES FINANCE AND GROWTH
FROM GREEN GOALS TO GREY RISKS: HOW ESGUI SHAPES FINANCE AND GROWTH
Author(s): Hakan YILDIRIM, Murat TEKBAŞ, Ali Emin İSLAMOĞLU, Mesut DoganSubject(s): Supranational / Global Economy, Energy and Environmental Studies, Economic development, Environmental interactions, Socio-Economic Research, Green Transformation
Published by: Kafkas Üniversitesi Sağlık, Kültür ve Spor Daire Başkanlığı Dijital Baskı Merkezi
Keywords: ESGUI; financial development; economic growth; sustainability;
Summary/Abstract: The main aim of this study is to examine the impact of the ESG-based Sustainability Uncertainty Index (ESGUI), developed by Ongan, Gocer, and Işık (2025), on economic growth and financial development. The sample includes developed economies—Germany, France, Japan, the United Kingdom, and the United States—using monthly data from November 2002 to December 2022. The analysis applies panel FMOLS and DOLS methods. The results indicate that ESGUI negatively affects both economic growth and financial development at the panel level. Furthermore, country-specific findings reveal heterogeneity, showing that the direction and magnitude of the effects differ across countries. These findings underscore that sustainabilityrelated uncertainties represent a critical risk factor that should be considered by investors, policymakers, and financial institutions.
Journal: Kafkas Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi
- Issue Year: 16/2025
- Issue No: 32
- Page Range: 1043-1065
- Page Count: 23
- Language: English
