چكيده لاتين
Abstract
Financial stability is one of the fundamental pillars of economic and social sustainability in any country and plays a decisive role in achieving sustainable development goals. Sustainable development encompasses economic, social, and environmental dimensions, and attaining it requires an efficient, resilient, and stable financial system. Accordingly, this study aims to examine the impact of financial stability on sustainable development and to explain the moderating role of the capital buffer.
For the empirical analysis, data from Iran’s major trading partners — including the United Arab Emirates, the United States, the United Kingdom, Italy, Japan, Turkey, France, Singapore, and Russia — were utilized over the period 2011–2021. These countries were selected because fluctuations in their financial stability and sustainable development indicators can directly and indirectly affect Iran’s economic performance. After testing the stationarity of the variables and conducting the cointegration, F-Limer, and Hausman tests, the research model was estimated using the System Generalized Method of Moments (System GMM). The validity of the results was confirmed through the Sargan and autocorrelation tests.
The findings indicate that financial stability has a positive and significant effect on sustainable development in the selected countries. In other words, countries with more stable financial systems have performed better in achieving sustainable development goals. Furthermore, the interactive effect of the capital buffer and financial stability is also positive and significant, suggesting that stronger capital reserves can amplify the positive impact of financial stability on sustainable development. However, the direct effect of the capital buffer on sustainable development was found to be insignificant.
Keywords: Sustainable development, Financial stability, Capital buffer, Systemic GMM
