Is economic growth in East Asia pacific and South Asia <scp>ESG</scp> factors based and aligned growth?

Abstract Asia–Pacific countries are experiencing rapid economic growth. Is this growth ESG (Environmental, Social, and Governance) factors‐based and aligned growth? Therefore, this study investigates the connections between ESG indicators and economic growth in East Asia Pacific and South Asia. To achieve this aim, we employed the FMOLS, DOLS, and AMG models. While the AMG model highlights significant long‐term positive effects of the environmental (EFs) and governance factors (GOVNF) on economic growth, the FMOLS and DOLS models emphasize the substantial influence of social factors (SOC) on economic growth. These findings underscore the multifaceted nature of ESG factors and offer valuable insights for policymakers aiming to align strategies with the sustainable development goals (SDGs). Notably, the GOVNF, with components like control of…