Mutual Impact of Sustainable Development and Quality Financial Stability in the Selected Developing Countries

Based on experiences and theoretical analysis, sustainability development is considered an important concept in the progress literature. Sustainable development has three components: economic, social and environmental. Based on this, sustainable development will be realized when there is economic stability along with social and environmental monitoring. Financial stability influences sustainable development directly by affecting sustainable development financing, and indirectly by affecting one of its main dimensions, namely economic development. Therefore, it can be concluded that sustainable development is impossible without stability and financial development.
As a result, in this study, the first step is to create a new composite indicator called sustainable development and high-quality financial stability for detailed and comprehensive analysis. After constructing composite indicators, the mutual impact of sustainable development and high-quality financial stability in the period of 2010-2020 in the countries of Iran, Turkey, Armenia, Pakistan and Iraq with the corrected ordinary least squares (FMOLS) approach and the combined group average estimate. (PMG) is checked in the tabular data space.
The results of the research indicate that there is a direct and significant relationship between sustainable development and financial stability, private investment and political stability in the long term, while the relationship between sustainable development and public investment is inverse and significant. Also, by examining causality, it was concluded that in the short term, the relationship between the variables is not bidirectional