scholarly journals The Moderating Effect of Institutional Quality on the Financial Development and Environmental Quality Nexus

2020 ◽  
Vol 12 (9) ◽  
pp. 3805
Author(s):  
Ahmed Imran Hunjra ◽  
Tahar Tayachi ◽  
Muhammad Irfan Chani ◽  
Peter Verhoeven ◽  
Asad Mehmood
Keyword(s):  
South Asia ◽  
Financial Development ◽  
South Asian ◽  
Environmental Quality ◽  
Environmental Sustainability ◽  
Negative Impact ◽  
Institutional Quality ◽  
Asian Countries ◽  
Moderating Role

Environmental sustainability is a major concern of contemporary societies, businesses, and governments. However, there is a lack of knowledge as to how countries can achieve the goal to end poverty, whilst protecting the planet. It is the objective of our study to examine the moderating role of institutional quality on the financial development and environmental quality nexus in South Asia. Our sample consists of panel data of five South Asian countries (India, Bangladesh, Nepal, Sri Lanka and Pakistan) from 1984 to 2018. We find that financial development increases CO2 emissions in this region, implying that countries in South Asia have utilized financial development for capitalization, instead of improving production technology. Institutional quality moderates the negative impact of financial development on environmental sustainability. An implication of our findings is that efforts to improve institutional quality may help to promote sustainable development in South Asia.

scholarly journals The shadow economy in South Asia: dynamic effects on clean energy consumption and environmental pollution

2021 ◽  
Author(s):  
Muhammad Tayyab Sohail ◽  
Sana Ullah ◽  
Muhammad Tariq Majeed ◽  
Ahmed Usman ◽  
Zubaria Andlib
Keyword(s):  
Energy Consumption ◽  
Sri Lanka ◽  
Co2 Emissions ◽  
South Asian ◽  
Environmental Quality ◽  
Shadow Economy ◽  
Institutional Quality ◽  
Clean Energy ◽  
Policy Implications ◽  
Asian Countries

AbstractThis study explores the symmetric and asymmetric effects of the shadow economy on clean energy and air pollution of South Asian countries over the period 1991–2019. The short-run ARDL findings for the clean energy model suggest that shadow economy increases clean energy consumption in Pakistan and Sri Lanka, whereas this effect is negative for India and insignificant for other countries. The long-run results indicate the adverse impact only for India and the effects of tax revenue on clean energy are positively significant in Sri Lanka while negatively signiicant in Nepal and Bangladesh. Institutional quality significantly increases clean energy in Pakistan, India, and Nepal. However, in the case of Pakistan and Nepal, institutional quality deteriorated the environmental quality. The results for the pollution model confer that shadow economy increases emissions in Pakistan, decreases in Bangladesh and Nepal, and has no effect in India and Sri Lanka. The nonlinear ARDL results reveal that the positive components of the shadow economy significantly increase clean energy consumption only in Pakistan; however, the negative components of the shadow economy are negatively significant in all countries except Sri Lanka and Nepal. However, the negative component of the informal sector of the economy reduces CO2 emissions in India and increases CO2 emissions in Bangladesh and Nepal. The results offer important policy implications for achieving clean energy and better environmental quality in South Asian countries.

scholarly journals Technology and Economic Growth: Role of Financial Development in South Asian Countries

2019 ◽  
Vol 5 (2) ◽  
pp. 323-332 ◽  
Author(s):  
Imran Sharif Chaudhry ◽  
Samina Sabir ◽  
Fatima Gulzar
Keyword(s):  
Economic Growth ◽  
Financial Development ◽  
South Asian ◽  
Method Of Moment ◽  
Asian Countries ◽  
Development Technology ◽  
Generalized Method Of Moment ◽  
Sustainable Economic Growth ◽  
The Impact

Financial development plays an instrumental role in the process of economic growth and development through mobilization of savings and creating investment opportunities. Financial development also leads to enhance the level of technology by providing finance to entrepreneurs for technological innovations which leads to economic growth. This study examines the impact of financial development and technology on economic growth of selected South Asian countries over the time span 1984-2017. Due to endogeneity problem, the empirical model used in the study is estimated by System Generalized Method of Moment (System GMM). Empirical results indicated that financial development, technology and human capital have positive and significant impact on economic growth in developing South Asian countries. To attain a sustainable economic growth, South Asian countries should put their efforts to develop their financial market that stimulates economic growth by providing finance to entrepreneurs for innovations.

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 Decomposing the Role of Different Factors in CO2 Emissions Increase in South Asia

2019 ◽  
Vol 14 (1) ◽  
pp. 72-86
Author(s):  
Monika Gupta
Keyword(s):  
South Asia ◽  
South Asian ◽  
Decomposition Analysis ◽  
High Growth ◽  
Growth Potential ◽  
Asian Countries ◽  
Negative Effect ◽  
Emissions Intensity ◽  
Sustainable Economic Growth

AbstractThe purpose of this paper is to determine the role of different important factors responsible for CO2 emissions increase in South Asia. Decomposition analysis has been done to see the factors which are primarily responsible for changes in CO2 emissions. Logarithmic Mean Divisia Index is used to quantify the role of different important factors in CO2 emissions increase during 1980 to 2014 in seven major South Asian countries - Bhutan, Bangladesh, India, Maldives, Nepal, Pakistan and Sri Lanka. The analysis shows that income effect and population effect are the major determinants in the increase in per capita emissions whereas fuel intensity and in few cases, emissions intensity has a negative effect in emissions increase in most of these countries. Due to high growth potential, emerging trend and rich resource endowments, it is suggested that South Asian countries should accelerate their efforts and cooperate to reduce CO2 emissions and energy consumption. This will help to attain sustainable economic growth in future.

scholarly journals Investigating the Influence of Financial Development Indicators on Economic Growth: Evidence from South Asia

2018 ◽  
Vol 7 (3) ◽  
pp. 9
Author(s):  
Muhammad Tahir ◽  
Khizar Hayat ◽  
Nisar Ahmad
Keyword(s):  
Economic Growth ◽  
South Asia ◽  
Financial Development ◽  
South Asian ◽  
Trade Openness ◽  
Unit Root Test ◽  
Final Conclusion ◽  
Asian Countries ◽  
Development Indicators ◽  
Independent Variables

The study empirically investigates the influence of Financial Development on Economic Growth in South Asia by using six indicators of Financial Development i-e: Gross Fixed Capital Formation (GFCP), Broad Money (M2), Domestic Credit to Private Sector (DCPS), Market Capitalization (MC), Trade Openness (TO) and Foreign Direct Investment (FDI). While Economic Growth is measured by Real Gross Domestic Product per Capita (GDP). For this purpose, the study used panel data from “World Development Indicators” for the period of 1980-2015 of six major South Asian countries i.e. Pakistan, India, Bangladesh, Bhutan, Sri Lanka and Nepal. These countries have common feature of being under-developed. The study shows its uniqueness by considering six under-developed South Asian countries and applying three result estimation techniques i-e: Pooled Group Mean (PMG), The Mean Group (MG) and The Dynamic Fixed Effect (DFE). Different results were produced through these three techniques. Final conclusion was drawn on the basis of Hausman test; that is PMG model estimation technique. Unit root test was also applied to check stationarity. The long run results of PMG model show significance of all independent variables, while short run results state insignificance of all independent variables except FDI. The results are consistent with the literature. Along with other recommendations, the study, especially, focuses that the trade barriers should be removed among South Asian countries as trade openness has positive influence on economic growth.  It will result in expanding the magnitude of growth.

Secular Democracies, Governance and Politics of Religion in South Asia

2017 ◽  
Vol 3 (2) ◽  
pp. 244-261
Author(s):  
Surya Prakash Upadhyay
Keyword(s):  
South Asia ◽  
South Asian ◽  
Religion And Politics ◽  
Colonial Period ◽  
Asian Countries ◽  
Post Colonial ◽  
Politics Of Religion ◽  
Colonial Histories ◽  
Role Of Religion

South Asian countries have a lot of commonalities exhibited through socio-political and economic situations. The cultural as well as political dynamics within the countries form more or less a similar pattern. These are closely related to colonial pasts, post-colonial histories, polyethnic population, political leadership and governance. These commonalities are also related to political instability, ethnic violence and a greater role of religion in the formation of secular democracies. Scholars have observed that in the post-colonial period, religion has played an important role in political formations in South Asian countries. This article looks at political situations, since the early 1950s, and traces the trajectory of religions’ association in formation of secular democracies in these countries. The article looks at available literature on South Asia and discusses two key ideas: how and why religion and politics are intertwined in South Asian countries, and ramifications of such association in the expansion of secular democracy. The article argues that religion has always been a potent force in South Asian countries and secularisation, in the Western sense, has never been achieved. Therefore, formations of secular democracy take different trajectories in South Asia.

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