scholarly journals FINANCIAL DEVELOPMENT, ENVIRONMENTAL QUALITY, TRADE OPENNESS AND ECONOMIC GROWTH: EMPIRICAL STUDY IN MENA COUNTRIES

2021 ◽  
Vol 9 (09) ◽  
pp. 920-931
Author(s):  
Sawssen Nafti
Keyword(s):  
Economic Growth ◽  
Co2 Emissions ◽  
Financial Development ◽  
Environmental Degradation ◽  
Environmental Quality ◽  
Trade Openness ◽  
Causal Link ◽  
Kuznets Curve ◽  
Economic Policies ◽  
Mena Countries

In this paper, we empirically investigate the causal relationship between financial development, environmental degradation (CO2 emissions), trade openness and economic growth (GDP), using Panel data (the theory of cointegration Pedroni (1999,2004)) for 12 MENA countries ( Middle East and North Africa) during the period 1990- 2014.The long-term relationships estimated by the modified least squares technique proposed by Pedroni (1996). Our results indicate that there is evidence for a bidirectionel causality between CO2 emissions and economic growth. Economic growth and trade openness are interdependent, it exist a bidirectionel causality. Also, we confirm a bidirectional causality among trade openness and financial development. The unidirectional causality of financial development on economic growth and openness to CO2 emissions trading is identified. Our empirical results also verified the existence of the environmental Kuznets curve hypothesis by the causal link between GDP and environmental polution. Finally, panel causality verifies the existance of bidirectional relationship between economic growth(GDP), environmental degradation(CO2 emissions), financial development and trade openness. This empirical knowledge is of particular interest to policy makers as it helps us create sound economic policies to support economic development and improve environmental quality.

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

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.

scholarly journals FINANCIAL DEVELOPMENT, INCOME, TRADE, AND URBANIZATION ON CO2 EMISSIONS: NEW EVIDENCE FROM KYOTO ANNEX COUNTRIES

2018 ◽  
Vol 9 (3) ◽  
pp. 17 ◽  
Author(s):  
Muhammad Rizwan Nazir ◽  
Muhammad Imran Nazir ◽  
Shujahat Haider Hashmi ◽  
Zeeshan Fareed
Keyword(s):  
Co2 Emissions ◽  
Financial Development ◽  
Environmental Degradation ◽  
Trade Openness ◽  
Negative Influence ◽  
Financial Reforms ◽  
Long Run ◽  
Short Run ◽  
Carbon Dioxide Co2 ◽  
The Impact

This study attempts to empirically investigate the impact of financial development, income, trade openness, and urbanization on carbon dioxide (CO2) emissions for the 21 Kyoto Annex countries using a balance panel data and GMM system over the period of 1970-2016. The results show a positive relationship between income and CO2 emissions in long-run. All models support the EKC hypothesis which assumes an inverted U-shaped relationship among income and environmental degradation. Financial development has a long-run negative influence on CO2 emissions, indicating that financial development reduces the environmental degradation. This means that financial development can be used as an implement to keep the degradation environmental clean by presenting financial reforms. The urbanization declines the CO2 emissions; however, it is essential for the policymakers and urban planners in these countries to control the rapid increase in urbanization. The panel causality confirms that bi-directional causal relationship between financial development, CO2 emissions, income, trade openness, and Urbanization in short-run.

scholarly journals Environmental Kuznets Curve Hypothesis: A Perspective of Sustainable Development in Indonesia

2018 ◽  
Vol 31 ◽  
pp. 09021
Author(s):  
Citrasmara Galuh Nuansa ◽  
Wahyu Widodo
Keyword(s):  
Economic Growth ◽  
Sustainable Development ◽  
Environmental Degradation ◽  
Environmental Quality ◽  
Environmental Kuznets Curve ◽  
Empirical Studies ◽  
Kuznets Curve ◽  
Ekc Hypothesis ◽  
Descriptive Research ◽  
The Relationship

Sustainable development with three main pillars, namely environmental, economic, and social, is the concept of country’s development to achieve inclusive economic growth, good environmental quality, and improvement of people's welfare. However, the dominance of economic factors cause various environmental problem. This phenomenon occurs in most of developing countries, including in Indonesia. The relationship between economic activity and environmental quality has been widely discussed and empirically tested by scholars. This descriptive research analysed the hypothesis called Environmental Kuznets Curve (EKC) from a perspective of sustainable development in Indonesia. EKC hypothesis illustrates the relationship between economic growth and environmental degradation forming an inverted U-curve, indicating that at the beginning of development, environmental quality will decrease along with increasing economic growth, and then reached a certain point the environmental quality will gradually improve. In this paper will be discussed how the relationship between environmental quality and economic growth in Indonesia was investigated. The preliminary results show that most of the empirical studies use the conventional approach, in which the CO2 emission used as the proxy of environmental degradation. The existence of inverted U-curve is also inconclusive. Therefore, the extension research on the relationship between economic growth and environmental quality in Indonesia using the EKC hypothesis is required.

scholarly journals Trade Liberalization, Economic Growth and Environmental Quality Nexus: An Empirical Evidence from Pakistan

2020 ◽  
Vol 3 (3) ◽  
Author(s):  
Noreen Safdar ◽  
Hina Ghaffar ◽  
Fatima Farooq ◽  
Malka Liaquat
Keyword(s):  
Economic Growth ◽  
Carbon Dioxide ◽  
Trade Liberalization ◽  
Environmental Quality ◽  
Carbon Dioxide Emissions ◽  
Energy Use ◽  
Trade Openness ◽  
Kuznets Curve ◽  
Labor Ratio ◽  
Capital Labor Ratio

The linkage between trade liberalization, environmental quality and economic growth is becoming an increasingly popular issue in environmental economics in recent decades. In view of Pakistan’s position as one of the main contributors to carbon dioxide emissions in Asia, it is vital to identify the main determinants of carbon dioxide emissions. The present study empirically investigates the long run association among trade liberalization, environmental quality and economic growth along with other variables energy use and capital labor ratio in Pakistan for the period 1980-2018. The results also indicate that there is inverted U shape relationship between economic growth and carbon dioxide emissions, hence the environmental Kuznets curve hypothesis is valid in Pakistan during 1980-2018. Trade openness has a negative significant impact on carbon dioxide emissions. Capital labor ratio effects and energy use have a direct relationship with carbon dioxide emissions. The results show that environmental quality is first declined by economic growth but with further increase in growth, environmental quality is improved which supports the existence of Environmental Kuznet curve hypothesis in Pakistan during that time span.          Furthermore, results also show that trade openness has positive significant impact on environmental quality.

scholarly journals Malaysia’s Energy-Growth Nexus and Environmental Kuznets Curve Hypothesis: Empirical Analysis Using the VECM and ARDL Cointegration Techniques

2021 ◽  
Vol 8 (1) ◽  
pp. 1-27
Author(s):  
Takashi Fukuda
Keyword(s):  
Economic Growth ◽  
Co2 Emissions ◽  
Environmental Kuznets Curve ◽  
Structural Break ◽  
Trade Openness ◽  
Kuznets Curve ◽  
Ekc Hypothesis ◽  
Energy Growth ◽  
Distributed Lag ◽  
Causality Tests

This paper investigated Malaysia’s energy-growth nexus and environmental Kuznets curve (EKC) hypothesis over the period 1971-2014 by taking the globalization variables of trade openness and foreign direct investment (FDI) and the structural break dummy of the Asian financial crisis of 1997 into estimation. To give interference, the Granger causality tests were implemented in the framework of two cointegration techniques: vector error correction model (VECM) and autoregressive distributed lag (ARDL). As per Malaysia’s energy-growth nexus, referring to different results of the two approaches, we concluded that the presence of the energy-growth nexus was statistically confirmed, but it has not been fully established yet in the country. On the other hand, both the VECM and ARDL results provided the same conclusion for Malaysia’s EKC hypothesis, that is, in the initial stage, as the higher economic growth, the less CO2 emissions, but after a threshold, the higher economic growth, the more CO2 emissions.

scholarly journals Unleashing the Indirect Influence of FDI in Environmental Degradation via Financial Development and Economic Growth. New Evidence from Asian Countries

2021 ◽  
Author(s):  
Ghulam Muhmmad Qamri ◽  
Bing Sheng ◽  
Rana Ejaz Ali Khan ◽  
Wasisfah Hanim
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Financial Development ◽  
Environmental Degradation ◽  
Environmental Quality ◽  
Direct Investment ◽  
The Political ◽  
Asian Countries ◽  
Mediating Role

Abstract Background:Scholars in developed and emerging economies have widely tested the interactions between foreign direct investment, financial development, economic growth and environmental degradation. Despite a number of empirical and review studies, it is not yet wrap up either the associations are negative, positive, direct or indirect. Additionally, minor attention is given to the indirect role of foreign direct investment in environmental degradation; perhaps no study has yet demonstrated the mediating role of financial development and economic growth between foreign direct investment and environmental degradation in Asian economies. Referring to the fragmented outputs and consequences as well as lacking the indirect role, the present study examines the influence of foreign direct investment on environmental degradation with the mediating role of financial development and economic growth. Results:Secondary data of 21 Asian countries from 1980-2018 were gathered from World Bank Indicators and then performed STATA to test the paths. Our findings are slightly different from the studies conducted in developed economies. The results indicate that foreign direct investment significantly improves environmental quality by deteriorating environmental pollution. It also significantly improves economic growth in the selected regions. Surprisingly, our study shows that foreign direct investment has a significant negative influence on financial development in the Asian regions. Both financial development and economic growth significantly negatively influence environmental degradation in Asian regions. However, financial development partially mediates while economic growth does not play any mediating role between foreign direct investment and environmental degradation in the Asian countries. Trade openness and population growth as control factors do not show any significant role in the model. Conclusions:This research recommends policymakers to focus on the inflow of foreign direct investment in order to enhance economic growth and environmental quality. It is strongly suggested for policymakers to attenuate the political intervention (e.g. ensure the political stability) in the inflow of foreign direct investment, so financial resources can be impartially distributed in the industrial sector and thus the nations will have an effective financial development system. Other implications have described.

scholarly journals Financial development, environmental quality, trade and economic growth: What causes what in MENA countries

2015 ◽  
Vol 48 ◽  
pp. 242-252 ◽  
Author(s):  
Anis Omri ◽  
Saida Daly ◽  
Christophe Rault ◽  
Anissa Chaibi
Keyword(s):  
Economic Growth ◽  
Financial Development ◽  
Environmental Quality ◽  
Mena Countries
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