Is financial development crucial to achieving the “2030 agenda of sustainable development”? Evidence from Asian countries

Khemani, Purnima; Kumar, Dilip

doi:10.1108/ijoem-06-2021-0853

Cited by 10 publications

(6 citation statements)

References 66 publications

(109 reference statements)

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“…The study conducted on the top five Asian economies considering bank credit, bank branches and insurance premium examined the relationship with CO 2 emissions and found a positive relationship between the two. A similar positive relationship between financial inclusion and emission is reported by Khemani and Kumar (2022) and Rehman et al (2022) in the context of Asian economies. Li et al (2022) conducted a study on BRICS nations and their main interest variables are: the financial deepening index, financial institution index and financial market deepening.…”

Section: Key Literaturesupporting

confidence: 76%

Does financial inclusion spur carbon emissions in India: an ARDL approach

Singh¹,

Tandon²,

Jasuja

2022

MEQ

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PurposeThe present study tries to examine the relationship between financial inclusion and environmental quality as proxied by carbon emissions in India covering the period from 2008 to 2018.Design/methodology/approachA financial inclusion index has been composed using principal component analysis (PCA) based on three dimensions: access, penetration and usage. After testing for stationarity of the data, the authors adopted the autoregressive distributive lag model (ARDL) methodology.FindingsThe study found that financial inclusion and growth lead to increased carbon emissions in India and the government must resort to greener policies, whereas empirical results support that globalization reduced the pollutants emissions in both the long term and short period in India.Practical implicationsBased on the results, several policy prescriptions are rendered for policymakers: (1) need to move toward greener energy policies and (2) enhance the awareness of green financing instruments such as green bonds in India. Therefore, policymakers should be more proactive in accepting green and sustainable financial alternatives.Originality/valueThe present study contributes to the scant literature on the financial inclusion–emission nexus in India. This study considers three inclusion parameters that are not present in previous studies.

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Section: Key Literaturesupporting

confidence: 76%

Does financial inclusion spur carbon emissions in India: an ARDL approach

Singh¹,

Tandon²,

Jasuja

2022

MEQ

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“…Another research finds a unidirectional causality from ED to FD and trade openness (Dada et al, 2022). However, causality exist between FD and sustainable development goals (SDG), especially in terms of ED, industry, and urban development (Khemani & Kumar, 2022). Moreover, FD has a bidirectional Granger causality with ED in upper-middle income countries than developed countries (Z.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Meanwhile, another study reveals that FD can boost industrial activity (Khemani & Kumar, 2022). Additionally, there is a positive relationship between green FD and green ED (Sadiq et al, 2022).…”

Section: Literature Reviewmentioning

confidence: 99%

“…Meanwhile, the interaction term of FD and ICT diffusion has a positive correlation and indirectly impacts on ED. FD also boosts sustainable development (Khemani & Kumar, 2022). However, with respect to Foreign Direct Investment (FDI) and institutional quality, the present findings align with a prior study that reports a positive correlation between institutional reforms and quality, and the increase in FDI net inflows (Kwaw-Nimeson & Tian, 2023).…”

Section: Literature Reviewmentioning

confidence: 99%

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The Effects of the Interactions Between Agro-Production, Economic, and Financial Development on Bank Sustainability

Zheng

Jean-Petit

2023

SAGE Open

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The Sub-Saharan African region encounters a deficiency in agricultural financing, which can be attributed to its constraints in accessing international investments in general and the low engagement of bank risk-taking in particular. This situation leads to underproduction, which exacerbates poverty and malnutrition in the region. Thus, this study investigates the impact of the interaction effects between agricultural production, economic development (ED), and financial development (FD via FDI and DC) on bank stability ratios across 40 countries, encompassing 350 operational banks, during the period covering 2010 to 2019. The research employs the Generalized Method of Moments (GMM) technique and verifies its consistency with Two-Stage Least Squares (2SLS) and the Z-Score Approach. The results highlight two findings: first, the interaction effects between economic development, agricultural production, and financial development factors have significantly greater impacts on bank sustainability than their individual effects without interactions. Secondly, these interaction effects sustain significantly bank stability in two ways: on the one hand, they increase bank returns (through both ROE and ROA), while on the other hand, they reduce bank riskiness (via negative effects on NPL and positive effects on LLR). The study concludes that those interaction effects significantly sustain the stability of the African banking system. The SS African states (via their central banks) should promote farming finance services and enforce a minimum ratio of farming loans for each commercial bank’s credit portfolio as a solution to the investment deficiency in the sector. Hence, this can solve food production level issues, ensure food security, and effectively sustain both the banking system and real economic development.

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“…Overall, the results assist policy makers to consider and implement different energies policies considering the significant influence of informal sector on the energy demand in Pakistan. The country is bound to take steps to move towards introducing energy efficient home appliances and vehicles, as it has already ratified both Kyoto protocol in 2005 and Paris Agreement in 2016 and it stands by the commitments made during recent United Nations Climate Change conference 2021 (Khemani and Kumar, 2022). Against this backdrop, our findings ask for policy measures to promote energy conservation and transformation to renewable energies to complement policies restricting underground economy.…”

Section: Introductionmentioning

confidence: 99%

Designing energy policy in the presence of underground economy: the case of Pakistan

Ahad

Farid

Anwer

2022

IJOEM

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PurposeIn the presence of informal sector in the country, designing an energy policy and the pursuit of higher economic growth become challenging for emerging economies. These economies are usually resource starved, and the presence of underground economy leads to faulty estimates of energy demand. The authors explore the energy–growth nexus in the presence of underground economy for Pakistan, an emerging economy host to large informal sector and facing recurring energy crises.Design/methodology/approachThe authors evaluate the impact of underground economy on energy demand in the presence of explanatory variables, including official gross domestic product (GDP), foreign direct investment and financial development. The authors first assess the influence of official economy on the consumption of energy. The authors investigate how energy consumption is influenced solely by underground economy. Finally, the authors evaluate the impact of true GDP on the energy consumption. The authors employ combined cointegration method of Bayer and Hanck (2013) and then apply vector error correction model.FindingsThe results reveal that official GDP, underground economy and true GDP positively and significantly affect energy consumption in both short and long run. Similarly, financial development as well as foreign direct investment enhance energy consumption. The authors find unidirectional causality between energy consumption and official GDP variables (OGDP → EC), underground economy (UE → EC) and true GDP variables (TGDP → EC) in the long run. The authors observe bidirectional causality in the short run between energy consumption and official GDP (OGDP ↔ EC) and true GDP (TGDP ↔ EC).Originality/valueTo the best of the authors' knowledge, no study examines the causal relationship of energy consumption and underground economy. Overall, the findings assist policymakers to consider and implement different energy-related policies considering the significant role of underground economy for energy consumption in Pakistan.

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Is financial development crucial to achieving the “2030 agenda of sustainable development”? Evidence from Asian countries

Cited by 10 publications

References 66 publications

Does financial inclusion spur carbon emissions in India: an ARDL approach

Does financial inclusion spur carbon emissions in India: an ARDL approach

The Effects of the Interactions Between Agro-Production, Economic, and Financial Development on Bank Sustainability

Designing energy policy in the presence of underground economy: the case of Pakistan

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