scholarly journals Financial development and environmental degradation: Do human capital and institutional quality make a difference?

2021 ◽  
Author(s):  
Mahmood Ahmad ◽  
Zahoor Ahmed ◽  
Xiyue Yang ◽  
Nazim Hussain ◽  
Avik Sinha
Keyword(s):  
Human Capital ◽  
Financial Development ◽  
Environmental Degradation ◽  
Institutional Quality

Asymmetric Impact of Institutional Quality on Environmental Degradation: Evidence of the Environmental Kuznets Curve

2021 ◽  
Vol 13 (22) ◽  
pp. 12507
Author(s):  
Farrah Dina Abd Razak ◽  
Norlin Khalid ◽  
Mohd Helmi Ali
Keyword(s):  
Financial Development ◽  
Environmental Degradation ◽  
Environmental Kuznets Curve ◽  
Energy Use ◽  
Institutional Quality ◽  
Kuznets Curve ◽  
Distributed Lag ◽  
Distributed Lag Model ◽  
Lag Model ◽  
New Guidelines

This paper aims to discover the asymmetry impacts and co-integration between gross domestic product, financial development, energy use and environmental degradation by featuring institutional quality covering the Malaysia economy during the period from 1984 until 2017 using a nonlinear auto-regressive distributed lag model. The results confirm the existence of the Environmental Kuznets Curve hypothesis for both linear and nonlinear analyses, thus verifying the relevance of symmetric and asymmetric EKC hypotheses for Malaysia. Further, this study verifies the attributes of financial development and institutional quality that mitigates the concern on CO2 emissions, but contradicting results were produced on energy use. The implication of this finding provides new guidelines for Malaysia authorities to consider the asymmetries in formulating environment-related policies to maintain environmental quality and achieve their sustainable development goals.

scholarly journals Financial Development, Institutional Quality, and Environmental Degradation Nexus: New Evidence from Asymmetric ARDL Co-Integration Approach

2020 ◽  
Vol 12 (18) ◽  
pp. 7812 ◽  
Author(s):  
Farhan Ahmed ◽  
Shazia Kousar ◽  
Amber Pervaiz ◽  
José Pedro Ramos-Requena
Keyword(s):  
Financial Development ◽  
Environmental Degradation ◽  
Environmental Sustainability ◽  
Trade Openness ◽  
Institutional Quality ◽  
Bounds Testing ◽  
Long Run ◽  
Auto Regressive ◽  
Negative Shock

The aim of this study is threefold; first, the study investigates the symmetric impact of trade openness, financial development, and institutional quality on environmental degradation and environmental sustainability. Second, the study examines the asymmetric relationship between financial development, institutional quality, and environmental degradation. Third, the study examines the asymmetric relationship between financial development, institutional quality, and environmental sustainability. For this purpose, the study utilized the data of Pakistan from 1996 to 2018. The study applied Augmented Dickey–Fuller (ADF), Phillips Parron (PP) and Zivote, and Andrews unit root test to check the properties of stationarity of the data. This study applied the Auto Regressive Distributive Lags (ARDL) model to investigate symmetric relationships while the Non-Linear Auto Regressive Distributive Lag Model (NARDL) approach is utilized to investigate the asymmetric relationship among variables. ARDL bounds testing approach utilized to investigate long-run co-integration while short-run dynamics have been investigated by applying the error correction method (ECM). This study found the significant long-run symmetric and asymmetric association of institutional quality (IQ) and financial development (FD) with environmental degradation (ED) and environmental sustainability. However, IQ- has an insignificant association with environmental sustainability. Moreover, dynamic multiplier analysis indicates that positive shock to FD and IQ has a stronger impact on environmental degradation while a positive or negative shock to FD; both have a stronger impact on environmental sustainability. However, a positive or negative shock to IQ has a smaller impact on environmental sustainability. Moreover, the study also found a significant long-run symmetric association of trade openness with environmental degradation and environmental sustainability. This study suggests that the quality of institutions, financial development, and trade openness is necessary to enhance the quality of the environment.

scholarly journals Financial development and economic growth: Role of institutional quality

2009 ◽  
Vol 56 (3) ◽  
pp. 327-357 ◽  
Author(s):  
Abdelkarim Yahyaoui ◽  
Atef Rahmani
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Human Capital ◽  
Panel Data ◽  
Financial Development ◽  
Institutional Quality ◽  
The Real ◽  
Development Institutions

The objective of our work is to show the importance of a healthy institutional framework in the finance-growth relation. In this context, we start by presenting, a theoretical lighting on this subject while trying to define the concept of the governorship and to determine its various measurements. Then, we empirically test a model of growth of Solow increased by the human capital, treating relation between financial development, institutions and economic growth. The various estimates were made by Panel data Methods over the period of 1990 to 2006 for 22 developing countries. Following these estimates, it seems that the quality of the institutions is regarded as an important factor which must not be neglected in the study of the relation between the financial sphere and the real sphere.

scholarly journals The Dynamic Nexus Between Financial Development, Renewable Energy and Carbon Emission: Role of Globalization and Institutional Quality Across BRI Countries

2021 ◽  
Author(s):  
Muhammad Sheraz ◽  
Xu Deyi ◽  
Muhammad Zubair Mumtaz ◽  
Atta Ullah
Keyword(s):  
Renewable Energy ◽  
Financial Development ◽  
Environmental Degradation ◽  
Carbon Emission ◽  
Generalized Method Of Moments ◽  
Institutional Quality ◽  
Consumption Pattern ◽  
Global Integration ◽  
Causality Test ◽  
Sustainable Environment

Abstract This empirical study examines the endogenous relationship between carbon emission (CO2), financial development, renewable energy, globalization, and institutional quality in 64 belt and road initiative countries (BRI) using a two-step system generalized method of moments (GMM) approach with panel data over the period 2003 to 2018. Furthermore, this study used (Dumitrescu & Hurlin, 2012) causality test to estimate the variables’ causal relationship. The results indicate that financial development significantly increases CO2 emissions and causes environmental degradation in BRI countries. However, renewable energy and globalization mitigate CO2 emission and improve the quality of the environment. Institutional quality was found to be positive in correlation with CO2 emission and indicates bad governance, corruption, weak bureaucracy, and improper implementation of environmental laws cause environmental degradation. Further, the study also reports a bidirectional relationship of financial development, renewable energy, and institutional quality with CO2 emission and a unidirectional causality running from globalization to CO2 emission in BRI countries. This study offers insight to policymakers to restructure the financial system, energy consumption pattern, and global integration and to improve institutions’ quality for a sustainable environment and the economy at the national and regional levels.

scholarly journals Assessing the effect of climate change and financial development on agricultural production in ASEAN-4: The role of renewable energy, institutional quality and human capital as moderators

2021 ◽  
Author(s):  
Abbas Ali Chandio ◽  
Muhammad Ibrahim Shah ◽  
Narayan Sethi ◽  
Zulqarnain Mushtaq
Keyword(s):  
Climate Change ◽  
Human Capital ◽  
Renewable Energy ◽  
Financial Development ◽  
Agricultural Production ◽  
Energy Use ◽  
Agricultural Sector ◽  
Institutional Quality ◽  
Distributed Lag ◽  
Long Run

Abstract This study utilizes the data of ASEAN-4 nations, namely Indonesia, Malaysia, Philippines, and Thailand, to examine how climate change, renewable energy, human capital, institutional quality as well as financial development affect the agricultural production. Since shocks in one country can easily affect another country of this region, the second generation modelling techniques are utilized to prove the relationship among the variables of interest. Findings from the Westerlund (2007) cointegration test confirms long run relationship among the variables. The result from Cross-sectionally augmented autoregressive distributed lag (CS-ARDL) model reveals that climate change negatively affects the agricultural production, renewable energy, human capital, institutional quality positively affects the agricultural production. Moreover, renewable energy use, human capital and intuitional quality moderates the effect of carbon emission on agricultural production. In addition, a U shaped relationship between financial development and agricultural production is discovered, suggesting that financial development can promote production in the agricultural sector only after reaching a certain threshold. Finally, some policy recommendations are provided for the ASEAN-4 countries.

scholarly journals Sustainable Utilization of Financial and Institutional Resources in Reducing Income Inequality and Poverty

2021 ◽  
Vol 13 (3) ◽  
pp. 1038
Author(s):  
Atta Ullah ◽  
Zhao Kui ◽  
Saif Ullah ◽  
Chen Pinglu ◽  
Saba Khan
Keyword(s):  
Economic Growth ◽  
Income Inequality ◽  
Financial Development ◽  
Institutional Quality ◽  
Vital Role ◽  
Electronic Government ◽  
Sustainable Utilization ◽  
One Belt One Road ◽  
Institutional Resources ◽  
Belt And Road

This study aims to determine the role of globalization, electronic government, financial development, concerning the moderation of institutional quality in reducing income inequality and poverty in One Belt One Road countries. The electronic government and regional integration of the economies of the One Belt One Road countries has increased globalization and can play a vital role in reducing income inequality and poverty. However, this globalization and digital transformation of government systems can only be beneficial in the presence of good institutional quality. The sample includes 64 One Belt One Road countries from 2003 to 2018. We employed a two-step system generalized method of moment (Sys-GMM) and a robustness check through Driscoll–Kraay standard errors regression. Our findings show that globalization, economic growth, e-government development, government expenditure, and inflation have a statistically significant and negative impact on income inequality and are key to eradicating income inequality and poverty. On the other hand, financial development, gross capital formation, and population size positively influence income inequality, which causes an increase in poverty and income inequality as financial development and population levels increase. Moderating variable institutional quality also positively impacts income inequality, which means that institutional quality in Belt and Road Countries is weak, as they are mostly developing countries that need to improve their systems. Moreover, the marginal effect also revealed that institutional quality has a corrective effect on the factors’ relationship with income inequality. Our findings endorse and conclude that globalization and e-government development improve economic growth and eradicate poverty and income inequality by boosting digitalization, investments, job creation, and wage increases for semi-skilled and unskilled human capital in Belt and Road countries. The sustainable utilization of financial and institutional resources plays a vital role in reducing income inequality and poverty in Belt and Road countries.

Sign in / Sign up

Export Citation Format

Share Document