Does good governance moderate the financial development-CO2 emissions relationship?

This paper examines the relationships among CO2 emissions, energy use, GDP, and financial development for 25 OECD countries over the 1971–2007 period. From the results of the panel FMOLS and the cross-sectional dependence regression, we do not find any support for the existence of the EKC for OECD countries. Moreover, the results present that the coefficient of financial development to CO2 emissions is negative and statistically significant for eight countries (Austria, Denmark, Germany, Ireland, the Netherlands, Norway, Portugal, and the U.S.). The findings of this study thus show that financial development can help EU countries to adjust their CO2 emissions.

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The Relation between Tourism and Economic Growth: A Case of Saudi Arabia as an Emerging Tourism Destination

Virtual Economics ◽

10.34021/ve.2020.03.04(2) ◽

2020 ◽

Vol 3 (4) ◽

pp. 29-47

Author(s):

Lamia Jamel

Keyword(s):

Economic Growth ◽

Saudi Arabia ◽

Granger Causality ◽

Co2 Emissions ◽

Financial Development ◽

Positive Impact ◽

Trade Openness ◽

Granger Causality Test ◽

Annual Data ◽

Causality Test

This paper examines empirically the relation between tourism and economic growth in Saudi Arabia. The authors try to justify how tourism contributes to the economic growth of Saudi Arabia. There are applied descriptive statistics, unit root test, VAR model and Granger Causality test as an econometric methodology to examine the connection between tourism and economic growth in Saudi Arabia for the annual data in the period from 1990 to 2018. The main empirical results of the study find out that tourism affects positively the economic growth in Saudi Arabia. Also, there is found a positive nexus among tourism and economic growth. Furthermore, CO2 emissions and financial development impact positively the tourism sector, while trade openness predicts a negative effect on tourism. Additionally, CO2 emissions, financial development, and trade openness have a positive impact on economic growth in Saudi Arabia. Finally, the Granger causality test provides evidence of bidirectional nexus between tourism and economic growth in Saudi Arabia. This paper contributes to the current research by explaining the causal nexus among tourism and economic growth in Saudi Arabia during the period from 1990 to 2018, applying a vector autoregressive model and Granger Causality.

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How Does Institutional Quality Moderate the Influence of Financial Development on Environmental Pollution? Evidence From G20 Countries

10.21203/rs.3.rs-347736/v1 ◽

2021 ◽

Author(s):

Toyo Amegnonna Marcel Dossou ◽

Emmanuelle Kambaye Ndomandji

Keyword(s):

Environmental Pollution ◽

Co2 Emissions ◽

Financial Development ◽

Institutional Quality ◽

Moderating Effect ◽

Policy Implications ◽

Standard Errors ◽

Negative Effect ◽

The Relationship ◽

Econometric Technique

Abstract Unlike previous studies that focused mainly on the relationship between financial development and CO2 emissions, the current study examined the moderating effect of institutional quality on the influence of financial development on environmental pollution in G20 countries over the period 2003-2015. The panel corrected standard errors (PCSE) is employed as an econometric technique. The findings are established as follows: First, the findings show that institutional quality appears to have a mixed (positive and negative) effect on environmental pollution. Second, the findings show that financial development has mixed (positive and negative) effect on environmental pollution. Third, the findings also show that the interaction between institutional quality and financial development has a negative and statistically significant on environmental pollution, meaning that institutional quality complements financial sector to reduce environmental pollution. Policy implications are discussed.

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