Financial Development and Sustainable Development: Role of Technology Innovation in Saharan African Economies

Purpose: This study investigates the relationship between financial development and sustainable development, emphasizing the moderating role of technological innovation in sub-Saharan region. Design/Methodology: The analysis is based on a sample of 33 sub-Saharan countries over the period 2003–2022, utilizing composite indicators for financial development and technological innovation constructed through a novel approach. Principal component analysis was employed to extract information from these indicators. To ensure robust and consistent regression coefficients, the study applied Driscoll–Kraay standard errors (D-K) and generalized least squares (GLS), addressing issues of temporal dependency and heteroscedasticity. Findings: The results revealed that financial development and technological innovation individually have positive impact on sustainable development. But combined have negative impact on sustainable development in sub-Saharan region. Originality: This research provides new insights into the dynamic relationship between financial development, technological innovation, and sustainable development in sub-Saharan countries. By proposing strategies to strengthen these linkages, it offers valuable guidance for stakeholders and policymakers working toward sustainability goals