Analysing the Effects of Natural Resource Utilization, Biodiversity, and Globalization: The Role of Fintech in Sustainable Financing

Abstract

This research attempted to provide insights regarding the role of Fintech, globalization, natural resource utilization and biodiversity in sustainable finance in the context of Thailand. For this purpose, data for Thailand spanning over 2000 to 2024 period is analysed using Quantile Autoregressive Distributed Lag (QARDL) technique. The outcomes indicated that in the long run, none of the selected determinants is significantly associated with sustainable finance. But, in the short run, Fintech is significantly and positively associated with sustainable finance. Similar to this outcome, biodiversity is also significantly linked with carbon finance and it was demonstrated that rising levels of biodiversity increased carbon finance. Likewise, globalization and natural resource utilization are significantly and positively associated with sustainable finance in the long-run. Lastly, the short-run analysis confirmed the convergence to equilibrium with a negative and significant error correction term. The outcomes presented in the study demand policy response in Thailand to enhance sustainable financing. Along with policy recommendations, the study offers insights and recommendations that can be utilized by future researchers to advance the research in Thailand.