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Strengthening economic resilience: the role of institutional readiness in developing countries

Students & Supervisors

Student Authors
Shahneela Suhani Noor Neha
Bachelor of Social Science in Economics, FASS
Dr. Faria Sultana
Supervisors
Dr. Faria Sultana
Senior Assistant Professor, Department Head, FASS
Dr. Faria Sultana
Senior Assistant Professor, Department Head, FASS

Abstract

This study explores the role of green finance in boosting economic resilience in developing countries, with a focus on India, South Africa, and Bangladesh between 2015 and 2021. It examines the influence of renewable energy adoption and institutional preparedness on economic resilience, as measured by the IMF-Adapted ND-GAIN Index, using panel data regression analysis. A Random Effects model, selected through the Hausman test, is used to account for country-specific factors. The findings reveal a complex relationship between green finance and economic resilience. Initially, the adoption of renewable energy has a negative short-term impact on resilience, contrary to expectations, suggesting economic difficulties during the transition to green energy. However, institutional preparedness has a significant positive effect on resilience, emphasizing the critical role of governance in climate adaptation. These findings underscore the importance of robust institutional frameworks in successfully implementing green finance strategies to enhance the economic resilience of climate-vulnerable countries. This research contributes to the growing body of literature on climate finance and offers valuable insights for policymakers in developing nations seeking to fortify their economies against climate-related risks.

Keywords

Economic Resilience Renewable Energy Institutional Readiness Climate Adaptation Developing Countries

Publication Details

  • Type of Publication:
  • Conference Name: 2nd INTERNATIONAL CONFERENCE ON SUSTAINABLE EDUCATION 2025
  • Date of Conference: 24/09/2025 - 24/09/2025
  • Venue: Hybrid
  • Organizer: INTI International University, Malaysia.