Do institutional quality and financial development affect sustainable economic growth? Evidence from South Asian countries

Ahmed, Farhan; Kousar, Shazia; Pervaiz, Amber; Shabbir, Aiza

doi:10.1016/j.bir.2021.03.005

Cited by 126 publications

(86 citation statements)

References 47 publications

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“…The institutions variable is a significant determinant of economic performance in the 50th, 75th and 90th quantiles. The effects of institutions in promoting economic performance are in line with Ahmed et al (2021), Boateng et al (2021), Corradini (2020) and Knack and Keefer (1995), who find better institutions can have a large effect on output. 4…”

Section: Resultssupporting

confidence: 77%

“…where RGDP is real GDP per capita, TC is total credit, X is a vector of controls (namely physical capital, labour growth, human capital, government expenditure, trade openness, FDI, inflation, institutions, where these variables are important determinants of economic performance), and ε is an error term. Besides the physical capital stock, labour growth and human capital that appear in Equation (1), we also controlled for institutional quality because it has been found to enhance economic performance, for example, by Ahmed et al (2021), Boateng et al (2021), Corradini (2020), Knack…”

Section: Empirical Modelmentioning

confidence: 99%

See 1 more Smart Citation

Business Credit, Household Credit and Economic Performance in Malaysia: A Quantile Regression Approach

Law

Naseem

Roslan

et al. 2021

MJES

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This study examines the effects of business (enterprise) credit and household credit on economic performance in Malaysia. The World Bank’s Doing Business report ranked Malaysia at number one among developing countries in terms of ease of getting credit in the six consecutive years since 2008. The analysis is based on quantile regression estimations, using quarterly time series datasets from 1999: Q4 to 2019: Q4. The empirical findings reveal that business credit is positively associated with economic performance whereas household credit is an insignificant determinant of economic performance. We also consider the interaction between credit and institutional quality, an emerging key fundamental variable that determines economic performance. The results demonstrate that only the interaction term between business credit and institutions is statistically significant. In short, business credit outperforms household credit in promoting economic performance in Malaysia. The empirical findings are robust to alternative control variables and quantile regression estimation techniques.

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Section: Resultssupporting

confidence: 77%

Section: Empirical Modelmentioning

confidence: 99%

Business Credit, Household Credit and Economic Performance in Malaysia: A Quantile Regression Approach

Law

Naseem

Roslan

et al. 2021

MJES

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“…Furthermore, no doubt industrialization is necessary for economic growth but at the same time, it is also the fact that it brings harmful impact on the quality of human life as well as the environment. It has been examined that rapid industrial growth affects the entire bio-network and components of a natural system like air, water, soil, and the surrounding ecosystem (F. Ahmed et al 2021;Magsi 2014). Therefore, understanding the severity of the problem, this study is carried with more concentration and spirit.…”

Section: Significance Of the Studymentioning

confidence: 99%

“…Since the emission of gases, the earth's temperature has risen by about 0.6°C, reaching the highest level in the last millennium. Carbon dioxide is a gas that lasts longer in the atmosphere as compared to other greenhouse gases and has consistently strewn all around the globe (Ahmed et al 2021;Kaufman et al 2002). During the COVID-19 pandemic, it has been observed that there is a significant reduction in greenhouse gas emissions, with a 17% reduction in carbon dioxide emissions by April 2020 as compared to April 2019, but the drop in carbon dioxide emissions was temporary and emissions rose as soon as lockdown measures were lifted and this trend is evident by China and India (Figs.…”

Section: Introductionmentioning

confidence: 99%

The environmental impact of industrialization and foreign direct investment: empirical evidence from Asia-Pacific region

Ahmed

Ali

Kousar

et al. 2022

Environ Sci Pollut Res

Self Cite

101

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Environmental degradation has been the main distress in recent years due to the drastic effect of climate change. To determine the gone thorough impact of industrialization and foreign direct investment on environmental degradation, this study utilized panel data of 55 countries of the Asia-Pacific region from 1995 to 2020 and it applies an autoregressive distributed lag (ARDL) model. The results showed that FDI, in general, has a significant negative impact on the environment and causes to increase in methane and CO2 emissions. Moreover, industrialization has a positive and significant impact on the environment. However, the size of the impact is moderate. This study also concludes that in the Asia-Pacific region, the environment Kuznets curve (EKC) and pollution heaven (PH) hypothesis are accepted. Finally, this study suggests the strict implication of environmental guidelines or the adoption of a new policy would be the key to ensuring the quality of the environment. Furthermore, the results confirmed that most of the panel countries are developing countries and do not have strict environmental management guidelines.

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“…Based on the literature review and combined with the research themes of this paper, we introduce other control variables that may affect GTFP, including industrial structure [50,51], energy structure [52], human capital [53,54], financial development level [55][56][57] and urbanization level [58,59]. (1) Industrial structure (is): expressed by the ratio of the output value of the tertiary industry to the GDP.…”

Section: Control Variablementioning

confidence: 99%

Research on the Impact Factors of Green Economy of China—From the Perspective of System and Foreign Direct Investment

et al. 2021

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The outbreak of COVID-19 has had an immeasurable impact on the global economy. It has damaged parts of the real economy, but also provided new opportunities for China’s green development. Both the system and foreign direct investment (FDI) have an important impact on China’s green recovery path. Based on the provincial panel data of China from 2007 to 2016, this paper uses a slacks-based measure (SBM) model and Malmquist–Luenberger (ML) index to measure the green total factor productivity (GTFP), and empirically analyzes the regulatory role of system in the influencing mechanism of FDI on GTFP. The results show that the overall level of FDI significantly inhibits the improvement of GTFP, and the interaction between system and FDI makes it shift from inhibition to promotion, but the promotion would be weakened with the improvement of the system. FDI in the eastern region shows a positive effect on GTFP, which will be weakened with the improvement of the system. FDI in central and western regions shows a negative effect on GTFP, and the negative effect in western regions will be increased with the improvement of the system. Then this article puts forward targeted policy suggestions for further improving the level of regional systems and introducing FDI of high quality.

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Do institutional quality and financial development affect sustainable economic growth? Evidence from South Asian countries

Cited by 126 publications

References 47 publications

Business Credit, Household Credit and Economic Performance in Malaysia: A Quantile Regression Approach

Business Credit, Household Credit and Economic Performance in Malaysia: A Quantile Regression Approach

The environmental impact of industrialization and foreign direct investment: empirical evidence from Asia-Pacific region

Research on the Impact Factors of Green Economy of China—From the Perspective of System and Foreign Direct Investment

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