Filling a financial gap in SDG3 achievement: Investments vs. budget funds
-
DOIhttp://dx.doi.org/10.21511/pmf.12(2).2023.08
-
Article InfoVolume 12 2023, Issue #2, pp. 91-103
- 255 Views
-
59 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
This paper delves into the challenge of financing Sustainable Development Goal 3 “Ensure healthy lives and promote well-being for all at all ages” (SDG 3). Despite its ambitious nature, the achievement of this goal has been hindered by a substantial lack of funding. The study aims to investigate potential sources to bridge the investment gap in SDG 3, analyzing data from 28 European countries. This includes factors such as the index and progress in sustainable development, sources of investment resources, and healthcare costs for 2020. Logit and probit regression models are employed for the analysis. The results indicate the absence of a statistically significant relationship between the volume of investments from the state, businesses, and households of countries and their level of SDG 3 achievement. However, an interesting finding emerges regarding healthcare expenditures under state insurance programs among European countries, which show a greater extent of progress in achieving SDGs compared to voluntary insurance programs. The paper emphasizes the importance of a balanced approach that uses multiple funding sources and the need for focused policies and partnerships to mobilize resources to ensure healthy lives and promote well-being for all at all ages.
Acknowledgment
Alex Plastun gratefully acknowledges support from the Ministry of Education and Science of Ukraine (№ 0121U113830).
- Keywords
-
JEL Classification (Paper profile tab)Q01, H51, E22
-
References44
-
Tables8
-
Figures4
-
- Figure 1. Change in the general SDG index (sdgi) and SDG 3 index (sdg3i) among European countries in 2017 and 2020
- Figure 2. Frequency histograms for share of total investment and by institutional sector
- Figure 3. Scatter plots of investment shares by institutional sector and SDG 3 index
- Figure 4. Scatterplots for health care expenditure indicators by public and voluntary insurance programs and the SDG index
-
- Table 1. Binary-numerical scale for SDGs achievement progress
- Table 2. Input data information
- Table 3. Mathematical essence of logit and probit models
- Table 4. Calculations of SDG 3 achievement progress index (sdg3pr)
- Table 5. Correlation matrix between the SDG 3 index and the SDG 3 progress index
- Table 6. Results of logit and probit regressions for determining the amount of accumulation of investment resources to overcome the investment gap in achieving SDG 3
- Table 7. Results of repeated logit and probit regressions for determining the amount of accumulation of financial resources to overcome the investment gap in achieving SDG 3
- Table 8. Results of forecasting the probability of progress in achieving SDG 3 based on mean values
-
- Aftab, W., Siddiqui, F. J., Tasic, H., Perveen, S., Siddiqi, S., & Bhutta, Z. A. (2020). Implementation of health and health-related sustainable development goals: Progress, challenges and opportunities – A systematic literature review. British Medical Journal Global Health, 5(8), e002273.
- Arfara, C., & Samanta, I. (2022). The impact of internal marketing philosophy on a firm’s strategic orientation. Innovative Marketing, 18(4), 48-61.
- Aust, V., Morais, A. I., & Pinto, I. (2020). How does foreign direct investment contribute to Sustainable Development Goals? Evidence from African countries. Journal of Cleaner Production, 245, 118823.
- Boiko, A., Umantsiv, Y., Cherlenjak, I., Prikhodko, V., & Shkuropadska, D. (2022). Policy measures for economic resilience of Visegrad Group and Ukraine during the pandemic. Problems and Perspectives in Management, 20(2), 71-83.
- Boros, A., Lentner, C., Nagy, V., & Tőzsér, D. (2023). Perspectives by green financial instruments – A case study in the Hungarian banking sector during COVID-19. Banks and Bank Systems, 18(1), 116-126.
- Chugunov, I., Makohon, V., Kaneva, T., & Adamenko, I. (2022). Influence of financial support of human capital development on economic growth. Problems and Perspectives in Management, 20(2), 269-280.
- Conticini, E., Frediani, B., & Caro, D. (2020). Can atmospheric pollution be considered a co-factor in extremely high level of SARS-CoV-2 lethality in Northern Italy? Environmental Pollution, 261, 114465.
- Endri, E., Hania, B.T., & Ma’ruf, A. (2022). Corporate green Sukuk issuance for sustainable financing in Indonesia. Environmental Economics, 13(1), 38-49.
- Gaspar, V., Amaglobeli, D., Garcia-Escribano, M., Prady, D., & Soto, M. (2019). Fiscal policy and development: Human, social, and physical investment for the SDGs (Staff Discussion Notes No. 2019/003). International Monetary Fund.
- Greig, F., & Deadman, E. (2022). Healthcare spending through the pandemic: The impact of high-cost medical events on household finances. JPMorgan Chase Institute.
- Ibukun, C. O. (2021). The role of governance in the health expenditure-health outcomes nexus: Insights from West Africa. International Journal of Social Economics, 48(4), 557-570.
- Jose, A., Philip, M., Prasanna, L. T., & Manjula, M. (2020). Comparison of probit and logistic regression models in the analysis of dichotomous outcomes. Current Research in Biostatistics, 10(1), 1-19.
- Kuzior, A., Krawczyk, D., Didenko, I., Sidelnyk, N., & Vasylieva, T. (2022). Interaction between health insurance, household income, and public health financing in Ukraine. Problems and Perspectives in Management, 20(4), 436-450.
- Makarenko, I., Brin, P., Belgibayeva, A., Orlov, I., & Oleksich, Z. (2023a). Energy companies’ transparency: Toward competitiveness and SDG 7 progress. Problems and Perspectives in Management, 21(2), 603-617.
- Makarenko, I., Gryn, V., Proskurina, N., Pushkar, I., & Goncharova, V. (2023b). Transparency and information asymmetry in the financial market: Strategic dependencies between sustainability disclosure, SDG achievement and financial and information efficiency. Investment Management and Financial Innovations, 20(4), 127-137.
- Makarenko, I., Plastun, A., Situm, M., Serpeninova, Y., & Sorrentino, G. (2021). Meta-analysis of the literature related to SDG 3 and its investment. Public and Municipal Finance, 10(1), 119-137.
- Melnyk, L.G. (2016). Instruments and key factors of sustainable (“green”) economy formation. Actual Problems of Economics, 178(4), 30-36.
- Micah, A. E., Bhangdia, K., Cogswell, I. E., Lasher, D., Lidral-Porter, B., Maddison, E. R., Nguyen, T. N. N., Patel, N., Pedroza, P., Solorio, J., Stutzman, H., Tsakalos, G., Wang, Y., Warriner, W., Zhao, Y., Zlavog, B. S., Abbafati, C., Abbas, J., Abbasi-Kangevari, M., ... Dieleman, J. L. (2023). Global investments in pandemic preparedness and COVID-19: Development assistance and domestic spending on health between 1990 and 2026. The Lancet Global Health, 11(3), e385-e413.
- OECD. (2020). Global outlook on financing for sustainable development 2021: A new way to invest for people and planet. Paris: OECD Publishing.
- Peña-Sánchez, A. R., Ruiz-Chico, J., & Jiménez-García, M. (2021). Dynamics of public spending on health and socio-economic development in the European Union: An analysis from the perspective of the sustainable development goals. Healthcare, 9(3), 353.
- Pisani, F., & Russo, G. (2021). Sustainable finance and COVID-19: The reaction of ESG funds to the 2020 crisis. Sustainability, 13(23), 13253.
- Plastun, A., Makarenko, I., Yelnikova, Y., & Makarenko, S. (2019). Environmental, social and governance investment standardization: Moving towards a sustainable economy. Environmental Economics, 10(1), 12-22.
- Quatrini, S. (2021). Challenges and opportunities to scale up sustainable finance after the COVID-19 crisis: Lessons and promising innovations from science and practice. Ecosystem Services, 48, 101240.
- Rađenović, Т., Radivojević, V., Krstić, B., Stanišić, T., & Živković, T. (2022). The efficiency of health systems in response to the COVID-19 pandemic: Evidence from the EU countries. Problemy Ekorozwoju – Problems of Sustainable Development, 17(1), 7-15.
- Raji, S. A., & Demehin, M. O. (2023). “Long walk to 2030”: A bibliometric and systematic review of research trends on the UN sustainable development goal 3. Dialogues in Health, 2, 100132.
- Ranjbari, M., Shams Esfandabadi, Z., Zanetti, M. C., Scagnelli, S. D., Siebers, P.-O., Aghbashlo, M., Peng, W., Quatraro, F., & Tabatabaei, M. (2021). Three pillars of sustainability in the wake of COVID-19: A systematic review and future research agenda for sustainable development. Journal of Cleaner Production, 297, 126660.
- Sachs, J., Schmidt-Traub, G., Kroll, C., Lafortune, G., Fuller, G., & Woelm, F. (2021). Sustainable development report 2020: The sustainable development goals and Covid-19 includes the SDG index and dashboards. Cambridge: Cambridge University Press.
- Sanmarchi, F., Esposito, F., Bucci, A., Toscano, F., & Golinelli, D. (2021). Association between economic growth, mortality, and healthcare spending in 31 high-income countries. Forum for Health Economics and Policy, 24(2), 101-118.
- Sciarelli, M., Cosimato, S., Landi, G., & Iandolo, F. (2021). Socially responsible investment strategies for the transition towards sustainable development: The importance of integrating and communicating ESG. The TQM Journal, 33(7), 39-56.
- Setti, L., Passarini, F., De Gennaro, G., Barbieri, P., Licen, S., Perrone, M. G., Piazzalunga, A., Borelli, M., Palmisani, J., Gilio, A. D., Rizzo, E., Colao, A., Piscitelli, P., & Miani, A. (2020). Potential role of particulate matter in the spreading of COVID-19 in Northern Italy: First observational study based on initial epidemic diffusion. BMJ Open, 10(9), e039338.
- Siddiqi, S., Aftab, W., Siddiqui, F. J., Huicho, L., Mogilevskii, R., Friberg, P., Lindgren-Garcia, J., Causevic, S., Khamis, A., Shah, M. M., & Bhutta, Z. A. (2020). Global strategies and local implementation of health and health-related SDGs: Lessons from consultation in countries across five regions. BMJ Global Health, 5(9), e002859.
- Simakhova, A., Dluhopolskyi, O., Kozlovskyi, S., Butenko, V., & Saienko, V. (2022). Healthcare sector in European countries: Assessment of economic capacity under the COVID-19 pandemic. Problems and Perspectives in Management, 20(2), 22-32.
- Soni, T.K. (2023). Demystifying the relationship between ESG and SDG performance: Study of emerging economies. Investment Management and Financial Innovations, 20(3), 1-12.
- Sweileh, W. M. (2020). Bibliometric analysis of scientific publications on “sustainable development goals” with emphasis on “good health and well-being” goal (2015–2019). Globalization and Health, 16, 68.
- UN ESCAP. (2020). A guidebook for assessing SDG investment needs (Publication No. ST/ESCAP/2914). United Nations.
- UN General Assembly. (2015). Transforming our world: The 2030 Agenda for Sustainable Development (A/RES/70/1).
- UNCTAD. (2019). SDG investment trends monitor (Report No: UNCTAD/DIAE/MISC/2019/4).
- Vadlamannati, K. C., Cooray, A., & De Soysa, I. (2023). Can bigger health budgets cushion pandemics? An empirical test of COVID-19 deaths across the world. Journal of Public Policy, 43(1), 33-58.
- Verba, D., Lopukh, K., Mikhailiuk, M., & Mel’nyk, O. (2023). Evaluation of the key commodities availability for Ukrainian households with different average per capita equivalent income. Financial and Credit Activity: Problems of Theory and Practice, 3(50), 234-245.
- Versal, N., & Sholoiko, A. (2022). Green bonds of supranational financial institutions: On the road to sustainable development. Investment Management and Financial Innovations, 19(1), 91-105.
- Volosovych, S., Zelenitsa, I., Kondratenko, D., Szymla, W., & Mamchur, R. (2021). Transformation of insurance technologies in the context of a pandemic. Insurance Markets and Companies, 12(1), 1-13.
- Vorontsova, A., Rieznyk, O., Treus, A., Oleksich, Z., & Ovcharova, N. (2022). Do environmental protection investments contribute to environmentally-oriented SDGS? Environmental Economics, 13(1), 141-154.
- Wang, K.-H., Zhao, Y.-X., Jiang, C.-F., & Li, Z.-Z. (2022). Does green finance inspire sustainable development? Evidence from a global perspective. Economic Analysis and Policy, 75, 412-426.
- Ziky, M., & Elghabri, M.T. (2022). Expectations of individuals regarding the Ijara Forward contract: The case of healthcare financing. Investment Management and Financial Innovations, 19(1), 1-13.