Developing and Validating Multidimensional Indices for Sustainability, FinTech Adoption, Green Finance, and Governance Quality

https://doi.org/10.5281/zenodo.18972111

Abstract

The growing complexity of the world economic, technological, environmental, and institutional systems demands the use of evaluation tools that reflect the interrelationship character of sustainable development. The paper constructs and confirms four composite metrics FinTech Adoption, Green Finance, Sustainable Performance, and Quality of Governance through a wide range of internationally recognized indicators. FinTech Adoption is evaluated using the indicators of digital and traditional access to finance such as ATMs, use of the internet, mobile subscriptions, and commercial bank branch. Adjusted net savings, renewable energy use, and CO2 emissions represent the three components that form Green Finance, whereas economic, environmental, and social sub-dimensions constitute Sustainable Performance. The World Governance Indicators include Regulatory Quality, Rule of Law, Government Effectiveness and Political Stability, used to evaluate Governance Quality. To establish the reliability, adequacy and the structural coherence of the indexes, the research design utilizes correlation analysis, KMO test, Sphericity Bartlett test, Principal component analysis (PCA) and Cronbach alpha test. The data indicate high scores on the internal consistency and high factor loading, which proves the multidimensional indices as effective instruments to be used in comparative analysis. These built indices offer an integrated field of empirical study that enhances the insight into the interaction between FinTech creation, environmental financial framework, sustainable performance, and governance among nations and a considerable policy application to digital transformation approaches, climate financing, sustainability planning, and institutional reforms.