The Role of Agricultural Financing and Development on Sustainability: Evidence from ASEAN Countries

Abstract

The introduction of Sustainable Development Goals (SDGs) provides a blueprint for sustainable growth which has received widespread attention from policymakers, industry players and academics globally. The objective of this paper is to examine the role of agricultural finance, progress in agriculture and rural development on the sustainable development of ASEAN countries. The relevant data covering a period of 11 years (2009 to 2020) is sourced from World Development Indicators (WDI) and Global Sustainable Development Reports (GSDR). The results obtained from the traditional approach of Fixed-effect model (FEM) indicate that agricultural finance, agricultural progress, and rural development have a significant and positive impact on the sustainable development of ASEAN countries. More specifically, the findings indicate that agricultural finance, progress in agriculture and rural development drive sustainable growth. These findings have several implications, especially for policymakers responsible for regulating these sectors. For instance, the relevant regulatory authorities should devise policies that can provide good incentives for the agricultural, rural and sustainable development.