Inna Makarenko

University of Helsinki,

Helsinki, Finland

E-mail: inna.makarenko@helsinki.fi

ORCID 0000-0001-7326-5374

The role of sector-specific SDG policies, governance quality and finance for SDG progress

Bodo Steiner

University of Helsinki,

Helsinki, Finland

E-mail: bodo.steiner@helsinki.fi

ORCID 0000-0002-5357-8856

Kateryna Yuhai

University of Helsinki,

Helsinki, Finland

E-mail: kateryna.yuhai@helsinki.fi

ORCID 0000-0002-4050-6175

Viktoriia Makarovych

Ferenc Rakoczi II Transcarpathian Hungarian University,

Berehove, Ukraine

E-mail: makarovich.viktoria@kmf.org.ua

ORCID 0000-0002-0684-7072

Abstract. This study examines the role of three country-level factors for progress on SDGs in agri-food and financial sectors across 167 United Nations Member States. First, the role of governance quality in terms of three governance indicators (government effectiveness, regulatory quality and rule of law); second, the role of financial support from international organizations; and third, the role of sector-specific SDG policies. The results from PLS-SEM and panel regression analyses indicate that sector-specific SDG policies have a statistically significant but minimal impact on SDG progress. Governance quality is positively associated with SDG progress, with high-income countries relying more on governance effectiveness and regulatory quality, and low-income countries relying on the rule of law. We have weak evidence that increasing bank credit to the agri-food sector boosts SDG progress, especially in lower-middle-income countries. Implications for policymakers aiming to enhance SDG progress arise from the need to improve governance quality.

Received: December, 2024

1st Revision: September, 2025

Accepted: November, 2025

DOI: 10.14254/2071-789X.2025/18-4/1

JEL Classification: E01, Q01, Q10, M40, M41

Keywords: Sustainable Development Goals, governance indicators, sustainable finance, policymaking, Partial Least Squares Structural Equation Modeling, banking sector, agri-food sector