The aim of current study is to examine the nexus among economic growth, education, health issues, and carbon emission for the panel of 161 countries. Education and health have confirmed insignificant coefficients for economic growth and carbon emission, which mention that higher education and better health conditions are not useful for boosting economic development and for controlling environmental degradation process. Empirical estimations have reported that higher capital investment leads to increase the economic process and carbon emission. Higher educational standard and capital investment helps to control the health issues, in the long-and short-run. On contrary, higher carbon emission creates health issues. The given results can provide support to the economic, social, and environmental policy makers during policy decisions. For example, the study suggests green financing and low carbon economy concept; the government and industries have to increase the investment on modern, energy efficient, and green technologies, which are useful for economic development, as well as to control the environmental degradation process.
Manuscript Type:
Empirical
Research Question/Issue:
This study tries to verify the impact of institutional environment, namely legal protection, law enforcement, trust and religion, on bank loans in the context of developing countries. In addition, we investigate the interactive effect of formal and informal institutions.
Research Findings/Insights:
Using survey data on enterprises from 25 developing countries, we find that institutional environment can significantly affect bank loans in developing countries. Compared with formal institutions, informal ones are relatively efficient at alleviating enterprises’ financial constraints, while law enforcement is more important than legal protection within the set of formal institutions. The split‐sample tests indicate that informal and formal institutions have substitutive effects on firms’ loan financing.
Theoretical/Academic Implications:
This study provides evidence of the impact of institutions on loan contracts in developing countries and sheds light on the importance of law enforcement and informal institutions. It suggests new avenues of research on the loan contract from a neo‐institutional perspective.
Practitioner/Policy Implications:
This study offers inspiration to the governments of developing countries interested in promoting enterprise development. In addition, it provides efficient methods that entrepreneurs can use to reduce the financing constraints on enterprises in the context of lower legal protection.
This study enriches the economic consequence of trust from the perspective of cash flow. It analyzes the impact of trust on interprovincial cash flow using matching data pertaining to Chinese provincial trust and the high‐value payment system in 2006–2010. It further investigates trust’s effect in different legal protection scenarios to explore the interactive role of formal and informal institutions. The results indicate that trust can significantly promote interprovincial cash flow and it persists after addressing endogeneity concerns and across different methods. However, this effect is only significant or much larger in provinces with less legal protection, indicating the alternative roles played by trust and formal institutions.
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