Analyzing the Interactive Effects of Financial Development and Corruption Control on Sustainable Development: A GMM Approach for Asian Middle-Income Countries

This study focuses on analyzing the impact of financial development on sustainable development in middle-income countries in Asia during the period 2002–2021. Furthermore, this study also clarifies the moderating role of corruption control in this impact, which is what differentiates this study from previous studies. Using the Generalized Method of Moments (GMM), the estimation results show that financial development has a positive impact on sustainable development. This study also shows that controlling corruption plays an important role in amplifying the positive impact of financial development on sustainable development. This is a new finding compared to other studies that have looked at this topic. The study results also emphasize that middle-income countries in Asia should build an appropriate financial system to achieve sustainable development goals. They should also do more to fight corruption.