The role of financial development in achieving sustainable development in Algeria - an empirical study for the period (1990-2023)

Abstract

This study aims to measure and analyse the impact of financial development on sustainable development. in algeria during the period (1990-2019), has been using Autoregressive Distributed Lag Model (ARDL) because of this form of advantages is the suitability for small samples and data of stationtary in the first-difference or the level or a combination of the two. In addition to that, this study arrives to a long-term balanced relationship between the study variables, as the positive and not significant relationship between the carbon dioxide emissions, financial development, GDP per capita and GDP per capita squared, while the relationship was positive and significant with urban population. And as expected, the error correction factor was negative and significant, which indicates that the estimated model includes a mechanism for returning to balance again.