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

Omri, Anis; Daly, Saïda; Rault, Christophe; Chaibi, Anissa

doi:10.1016/j.eneco.2015.01.008

Cited by 586 publications

(252 citation statements)

References 82 publications

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“…as GDP rises, EPI is falling. This confirms the results of Dasgupta et al [34], Tamazian and Rao [21], Arouri et al [35] and Omri et al Robust standard errors in parentheses *** p<0.01, ** p<0.05, * p<0.1 [18] though it contradicts Chakraborty and Mukherjee [30]. This effect arose when we solved for both heterogeneity and endogeneity by employing GMM estimation thus demonstrating that economic growth reduces environmental sustainability.…”

Section: Resultssupporting

confidence: 72%

“…The paper found no significant impact of trade openness on the environment in the global panel, though it found that urbanization reduces CO 2 emissions while GDP increases it. Omri et al [18] investigates the relationship between financial development, CO 2 emissions, trade and economic growth for 12 MENA countries. They find evidence for bidirectional causality between CO 2 emissions and economic growth and verify EKC.…”

Section: Literature Reviewmentioning

confidence: 99%

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The impact of trade openness on environmental quality: an empirical analysis of emerging and developing economies

Bernard

Mandal

2016

WIT Transactions on Ecology and the Environment

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This study examines the impact of trade openness on environmental quality using a dynamic panel data model for 60 emerging and developing economies. We attempt to examine the trade-environment relationship for the period 2002 to 2012, employing Environmental Performance Index (EPI) and CO 2 emissions as the two indicators of environmental quality. The paper tries to fill in the lack of dynamic panel data models investigating trade-environment relationship in emerging economies. The fixed effects model elicits that trade openness improves EPI, albeit it increases CO 2 emissions. When corrected for endogeneity, trade openness was found to have no significant impact on EPI, though it escalates CO 2 emissions. GMM findings with EPI highlight that political factors improve environmental quality, whereas income and population have detrimental effects. In the GMM estimations with CO 2 emissions, trade openness, income, energy consumption and population were found to have deleterious effects on environmental quality. The empirical findings impart support to the contentions over the impact of trade on environmental quality. Efficacious economic, energy, infrastructural and institutional policies hold the key to environmental sustainability in emerging economies.

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Section: Resultssupporting

confidence: 72%

Section: Literature Reviewmentioning

confidence: 99%

The impact of trade openness on environmental quality: an empirical analysis of emerging and developing economies

Bernard

Mandal

2016

WIT Transactions on Ecology and the Environment

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“…For instance, Ozturk and Acaravci (2013) argue that financial development has no significant effect on carbon emissions in the long-run in the Turkish economy. Similarly, Omri et al (2015) report a neutral effect of financial development on carbon emissions for 12 MENA countries. There are also some multi-country studies, for instance, Bekhet et al (2017) which suggest mixed results for the six GCC countries.…”

Section: Financial Development-carbon Emissions Nexusmentioning

confidence: 99%

Environmental degradation in France: The effects of FDI, financial development, and energy innovations

2018

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This paper explores the determinants of carbon emissions in France by accounting for the significant role played by foreign direct investment (FDI), financial development, economic growth, energy consumption and energy research innovations in influencing CO2 emissions function. In this endeavour, we employ the novel SOR ) unit root test on French time series data over the period 1955-2016 to examine the order of integration in the presence of sharp and smooth structural breaks in the variables. We also apply the bootstrapping bounds testing approach, recently developed by McNown et al. (2018), to investigate the presence of cointegration and the empirical findings underscore the presence of cointegration among the time series. Moreover, we find that FDI has a positive impact, while energy research innovations have a negative impact, on French carbon emissions. Financial development lowers carbon emissions, thereby improving the French environmental quality. FDI degrades the environment, and thus supports the pollution-haven hypothesis in France. Similarly, financial development suggests that financial stability is a required condition for improving environmental quality, so are energy research innovations. Contrarily, energy consumption is positively linked with carbon emissions. However, the relationship between economic growth and CO2 emissions is an inverted-U, which is a validation of the environmental Kuznets curve (EKC).

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“…In the existing literature, studies also find a insignificant effect of financial development on carbon dioxide emissions (for example, Ozturk and Acaravci 2013, Dogan and Turkekul 2016, Omri et al 2015and Ziaei 2015. In the case of Pakistan, Javid and Sharif (2016) follow Shahbaz et al (2012) and incorporate financial development as additional factor in their EKC function.…”

mentioning

confidence: 99%

Financial development and environmental quality: The way forward

et al. 2016

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The present paper re-examines the asymmetric impact of financial development on environmental quality in Pakistan for the period 1985Q1 to 2014Q4. A comprehensive index of financial development is generated using Bank-and Stock market-based financial development indicators. The results show that inefficient use of energy adversely affects the environmental quality. This suggests adoption of energy efficient technology at both production and consumption levels. These technologies would be helpful to improve environmental quality, enhance the productivity in long-run and save energy. Bank-based financial development also impedes the environment. The government should encourage lenders to ease the funding for energy sector and allocate financial resources for environment friendly businesses rather than wasting them in consumer financing.

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

Cited by 586 publications

References 82 publications

The impact of trade openness on environmental quality: an empirical analysis of emerging and developing economies

The impact of trade openness on environmental quality: an empirical analysis of emerging and developing economies

Environmental degradation in France: The effects of FDI, financial development, and energy innovations

Financial development and environmental quality: The way forward

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