Does access to domestic finance and international finance contribute to sustainable development goals? Implications for policymakers

• Date: 01 May 2020
• Published date: 01 May 2020
• Author: Muhammad Sualeh Khattak
• DOI: http://doi.org/10.1002/pa.2024

ACADEMIC PAPER

Does access to domestic finance and international finance

contribute to sustainable development goals? Implications for

policymakers

Muhammad Sualeh Khattak

Hamdard Institute of Management Sciences,

Hamdard University, Islamabad Campus,

Islamabad, 44000, Pakistan

Correspondence

Muhammad Sualeh Khattak, Hamdard Institute

of Management Sciences, Hamdard University,

Islamabad Campus, Islamabad 44000, Pakistan.

Email: sualehktk@yahoo.com

Seventeen goals presented by the United Nation General Assembly provide an

evidence-based framework of planning and programming for sustainable develop-

ment goals (SDGs) until 2030. There is a growing catalog of related reviews, recom-

mendations, advice, and publications, whereas the professional community is

undoubtedly emphasizing the need to adopt evidence-based methodologies for the

implementation of SDGs. In particular, emerging economies face a big challenge to

implement SDGs practices efficiently. Some countries have focused on the business

sector for this mission, whereas others invest in a variety of projects to gain SDGs.

However, it is still not yet realized how small and medium-sized enterprises (SMEs)

contribute to SDGs. This research examines the influence of SMEs' access to domes-

tic and international finances on SDGs (community and environmental practices).

Data were collected from 310 Pakistani SMEs through a structured questionnaire.

The findings revealed from structural equation modeling indicate that access to both

domestic and international finances significantly contributes to community practices.

However, access to international finance significantly helps in community practices

but does not substantially facilitate environmental practices. This research recom-

mends policymakers and practitioners to encourage domestic and international finan-

cial institutions and capitalists to invest in industrial sectors, which in turn can

configure SDGs. Further implications are discussed.

1|INTRODUCTION

In 2015, the United Nation General Assembly presented “the 2030

Agenda for sustainable development”involving of 17 sustainable

development goals (SDGs) and 169 targets. The targets are erected

on the millennium development goals and object to realize their frag-

mentary intents. These goals are amalgamated and fused in three

well-known scopes: economic, social, and environmental (Chams &

García-Blandón, 2019; Jones, Comfort, & Hillier, 2018). SDGs are the

most important agenda across the globe (Dickens, Smakhtin,

McCartney, O'Brien, & Dahir, 2019). To achieve SDGs, many coun-

tries have initiated special programs and policies. Still, the perfor-

mance of policymakers and responsible authorities in terms of SDGs

is unsatisfactory especially in underdeveloped and developing econo-

mies. Therefore, effective strategies for attaining SDGs have become

a need of the day across the globe. From the business perspective,

the objectives of SDGs are to establish sustainable, innovative strate-

gies, and programs that can help in poverty alleviation, employment

opportunities, community support, and attenuate environmental pol-

lution (Chams & García-Blandón, 2019; Lingard, 2012). In the current

era, business organizations have considered the most important assets

in the attainment of SDGs (Gambetta, Azadian, Hourcade, & Reyes,

2019; Miotto, Polo López, & Rom Rodríguez, 2019; Raszkowski &

Bartniczak, 2019). Particularly, small and medium-sized enterprises

(SMEs) have become a major target to facilitate the attainment of

these goals. In other words, world economies expect much from SMEs

Received: 12 July 2019 Revised: 21 July 2019 Accepted: 2 September 2019

DOI: 10.1002/pa.2024

J Public Affairs. 2019;e2024. wileyonlinelibrary.com/journal/pa © 2019 John Wiley & Sons, Ltd. 1of12

https://doi.org/10.1002/pa.2024

J Public Affairs. 2020;20:e2024. wileyonlinelibrary.com/journal/pa © 2019 John Wiley & Sons, Ltd. 1of12

https://doi.org/10.1002/pa.2024