Financial Development, Institutional Quality, and Environmental Degradation Nexus: New Evidence from Asymmetric ARDL Co-Integration Approach

Ahmed, Farhan; Kousar, Shazia; Pervaiz, Amber; Ramos-Requena, José Pedro

doi:10.3390/su12187812

Cited by 67 publications

(52 citation statements)

References 39 publications

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“…According to United Nations Economic and Social Commission for Asia and Pacific (UNESCAP), in 2018, the Asia-Pacific region received a 45% share of global FDI inflows and it is also expected that this region will continue to serve as a major destination for FDI inflows in the upcoming years (Bhujabal et al 2021). Moreover, as the Asia-Pacific region is at a growing stage both economically and technologically, so FDI is considered a major channel of transfer of technology and hence affects the economic and environmental structure of the receiving countries (Ahmed et al 2020;Tang et al 2014). Therefore, developing countries should design policies to attract FDI and accelerate industrial progress but not at the expense of the environment and the health of their residents (Tang et al 2014).…”

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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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

View full text Add to dashboard Cite

show abstract

“…Second, after studying the literature, we concluded that the findings of prior researchers on the relation between GEP and environment are also conflicting, and the decisions of the prior researchers regarding the contributions of energy in ED and ES are based on the explicit measure of environment, i.e., CO 2 emissions. This study argues that when there is a separate measure for ES, we measure it with carbon emissions, Environmental Degradation (Ahmed et al, 2020).…”

Section: Introductionmentioning

confidence: 99%

“…Third, the study finds that "How does financial development contribute to environmental sustainability?" is still less focused on the available knowledge as only a few studies (Ahmed et al, 2020) explore the contributions of FD in EQ. Fourth, the study investigates the significant moderating role of CG in the affiliations between GEP, GIN, FD, and EQ with the help of solid theoretical supports.…”

Section: Introductionmentioning

confidence: 99%

Impact of Green Energy Production, Green Innovation, Financial Development on Environment Quality: A Role of Country Governance in Pakistan

Bhutta

Ullah

Sultan

et al. 2022

IJEEP

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The study aims to analyze the contributions of green innovation, green energy production, and financial development to environmental quality with the moderating role of country governance. The study collects data from a panel of five South Asian economies from 2000 to 2018. The paper includes CIPS, a second-generation unit root to test the data's stationarity, and the Westerlund co-integration to investigate the long-term relationship between determinants. The Fully Modified and Dynamic Ordinary Least Square is applied to estimate the long-run coefficient and test the hypothesized relationship between selected determinants. The study finds that green innovation and green energy production negatively (positively) contribute to environmental degradation (environment sustainability). Moreover, financial development has a substantial impact on environmental degradation and sustainability, as per the findings. The study further finds a significant role of country governance in the relationship between green innovation, green energy production, environmental degradation, and environmental sustainability. Furthermore, country governance is improving the link between financial development and environmental degradation, and long-term sustainability.

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“…The modeling approach of ARDL was first pioneered by Pesaran, Shin, and Smith (1999) later in Pesaran, Shin, and Smith (2001) further extended this technique. This technique is considered as the most appropriate to use while working with small sample sizes (Ahmed, Kousar, Pervaiz, & Ramos-Requena, 2020). Many researchers have applied this co-integration technique to test long-run association among the variables for the case of small samples.…”

Section: Estimation Techniquesmentioning

confidence: 99%

Public Debt and Economic Growth in Switzerland

Lim

Groschek

2021

jcrbef

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Economic theory suggests that a realistic level of borrowing is beneficial for both developing and developed economies in achieving sustainable level of economic growth. However, as a result of insufficient domestic resources to fund the “development projects”, required for the economic progress, most of the countries strongly rely on internal (domestic) and external (international) capitals such as public debt, foreign direct investment (FDI) and remittances. Keeping in mind this significance, this study analyzes the role of public debt, FDI and remittances in accelerating the economic growth in Switzerland. For getting this purpose achieved, the study gathers the data from world development indicators (WDI) for the period of 1997-2016. The study uses public debt, FDI and remittances as predictors, while economic growth is taken as outcome variable. The study applies auto regressive distributive lag (ARDL) model to analyze the data. Results of the study show positive influence of public debt, FDI and remittances on the economic growth of Switzerland which is in line with the economic theory. Based on the findings, the study suggests articulating and implementing policies aimed at attracting more inflows of foreign capital that will positively contribute to economic growth in the long run. The study furthers the government of Switzerland to keep debts to the GDP threshold as low as possible.

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Financial Development, Institutional Quality, and Environmental Degradation Nexus: New Evidence from Asymmetric ARDL Co-Integration Approach

Cited by 67 publications

References 39 publications

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

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

Impact of Green Energy Production, Green Innovation, Financial Development on Environment Quality: A Role of Country Governance in Pakistan

Public Debt and Economic Growth in Switzerland

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