Improving the Financial Infrastructure for Sustainable Development of Territories

Infrastructure development may have a dual influence on territories’ sustainable development and create challenges for authorities in balancing economic growth, environmental protection, and social equity. In the research framework, we focus on the financial sector as a key element of the territorial economy and examine how the physical and digital financial infrastructure impact sustainable development. To achieve the goal of the research, we use panel data and ordered logistic regression models on a dataset of Russian regions for the period 2020-2022. The results show that regions with higher levels of physical and digital financial infrastructure development have higher SDG performance. The structural differences in the impacts of the physical and digital financial infrastructure on SDG performance were also observed. The theoretical contribution of the research is mainly in regional development by integrating financial infrastructure analysis into sustainability metrics, particularly within the context of emerging markets such as Russia. The research results are relevant for authorities and financial institutions to develop economic policies that promote infrastructure development and financial allocation to ensure sustainable development in different territories.

Digital infrastructure; Financial sector; Physical infrastructure; SDG performance; Sustainable development

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