The Impact of Sustainable Bond Issuance on Global Macroeconomic Indicators: An Econometric Analysis for the Period 2013-2023

This paper assesses the impact of green, social, and sustainable bonds on the key macroeconomic variables of gross domestic product, inflation, and unemployment across the global economy for the period 2013–2023. Green, social and sustainable bonds are new financial instruments developed to align economic growth with environmental and social goals. Though previous studies have focused mainly on specific types of bonds or regions, this research will undertake a comprehensive study of their aggregate and individual impacts on the macroeconomy.

It considers the linear regression model in order to investigate the relation of green, social and sustainable bonds issuances with selected economic indicators. It has been observed that the coefficients of green bonds are highly significant, consistent with positives for both gross domestic product and inflation, since such bonds play a financing role in sustainable infrastructure and are expected to ensure economic growth. Social bonds also contribute positively to gross domestic product but show an insignificant relationship with inflation, as befits their welfare-oriented objectives. Sustainable bonds show moderate positive effects on both gross domestic product and inflation but limited impacts on the unemployment and growth rates.

These results highlight the importance of green, social and sustainable bonds in fostering economic resilience and furthering sustainable development. The findings suggest that targeted strategies should be implemented by policymakers to enhance the efficiency of social and sustainable bonds, and to make use of green bonds as an instrument for financial stability and growth. This paper adds to the emerging literature on sustainable finance by providing the first aggregated assessment of the macroeconomic impacts of green, social and sustainable bonds and by offering actionable insights for policymakers and investors. Future research should be done on the long-term and sectoral impacts of green, social and sustainable bonds to deepen the understanding of their economic implications.