nach oben

Economic Change and Restructuring

Erschienen in:

06.02.2023

Financial development, economic growth, globalisation and environmental quality in BRICS economies: evidence from ARDL bounds test approach

verfasst von: Vaishali S. Dhingra

Erschienen in: Economic Change and Restructuring | Ausgabe 3/2023

Einloggen

Aktivieren Sie unsere intelligente Suche, um passende Fachinhalte oder Patente zu finden.

search-config

KI-gestützte Suche

Aus

Abstract

The current world is seeking balance between achieving economic and financial growth and shielding earth’s environment. The 13th goal (climate action) among 17 Sustainable Development Goals (SDGs) is an outcome of the same concern. The ample body of the literature tries to analyse the inter-linkages among financial development, economic growth, globalisation and greenhouse gas (GHG) emissions, but their results do not reach a consensus. The BRICS (Brazil, Russia, India, China and South Africa) nations have emerged as a dominant force in recent years, but their growth stories are tainted with the increased environmental issues. The present study tries to analyse the same nexus from 1991 to 2020 using Autoregressive Distributed Lag (ARDL) approach for BRICS nations. The empirical findings suggest strong long-run and short-run positive implications of financial development, and negative implications of economic growth and globalisation on GHG emissions in all four nations except China. The study is distinct as it extensively analyses the interdependence between GHG emissions and financial development using 9 different sub-indices.

Vorheriger Artikel Evaluating economic recovery by measuring the COVID-19 spillover impact on business practices: evidence from Asian markets intermediaries

Nächster Artikel The effects of unexpected crude oil price shocks on Chinese stock markets

Sie haben noch keine Lizenz? Dann Informieren Sie sich jetzt über unsere Produkte:

Springer Professional "Wirtschaft+Technik"

Online-Abonnement

Mit Springer Professional "Wirtschaft+Technik" erhalten Sie Zugriff auf:

über 102.000 Bücher
über 537 Zeitschriften

aus folgenden Fachgebieten:

Automobil + Motoren
Bauwesen + Immobilien
Business IT + Informatik
Elektrotechnik + Elektronik
Energie + Nachhaltigkeit
Finance + Banking
Management + Führung
Marketing + Vertrieb
Maschinenbau + Werkstoffe
Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

Jetzt informieren

Springer Professional "Wirtschaft"

Online-Abonnement

Mit Springer Professional "Wirtschaft" erhalten Sie Zugriff auf:

über 67.000 Bücher
über 340 Zeitschriften

aus folgenden Fachgebieten:

Bauwesen + Immobilien
Business IT + Informatik
Finance + Banking
Management + Führung
Marketing + Vertrieb
Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

Jetzt informieren

Data have been aaccessed through http://emissions2017m.globalcarbonatlas.org/en/CO2-emissions on 12/12/2022.

Accessed through https://www.enerdata.net/research/energy-market-data-co2-emissions-database.html.

Andrew R, Peters G (2021) The Global Carbon Project’s fossil CO₂ emissions dataset. Zenodo: Geneva, Switzerland

Abbasi F, Riaz K (2016) CO₂ emissions and financial development in an emerging economy: an augmented VAR approach. Energy Policy 90:102–114CrossRef

Álvarez-Herránz A, Balsalobre D, Cantos JM, Shahbaz M (2017) Energy innovations-GHG emissions nexus: fresh empirical evidence from OECD countries. Energy Policy 101:90–100CrossRef

Azam A, Rafiq M, Shafique M, Yuan J (2021) Renewable electricity generation and economic growth nexus in developing countries: An ARDL approach. Econ Res-Ekonomska Istraživanja 34(1):2423–2446CrossRef

Baloch MA, Ozturk I, Bekun FV, Khan D (2020) Modeling the dynamic linkage between financial development, energy innovation, and environmental quality: does globalization matter? Bus Strateg Environ 30(1):176–184CrossRef

Barbier EB (1997) The economic determinants of land degradation in developing countries. Philosoph Transact Royal Soc London. Series b: Biol Sci 352(1356):891–899. https://doi.org/10.1098/rstb.1997.0068CrossRef

Beck T (2003) Financial dependence and international trade. Rev Int Econ 11(2):296–316CrossRef

Beckerman W (1992) Economic growth and the environment: whose growth? whose environment? World Dev 20(4):481–496CrossRef

Birdsall N, Wheeler D (1993) Trade policy and industrial pollution in Latin America: where are the pollution havens? J Environ Develop 2(1):137–149CrossRef

Boutabba MA (2014) The impact of financial development, income, energy and trade on carbon emissions: evidence from the Indian economy. Econ Model 40:33–41CrossRef

China emissions exceed all developed nations combined (2021) In BBC News. Available at https://www.bbc.com/news/world-asia-57018837. Retrieved on 15/08/2022

Chishti MZ, Sinha A (2022) Do the shocks in technological and financial innovation influence the environmental quality? Evidence from BRICS economies. Technol Soc 68:101828CrossRef

Chishti MZ, Ullah S, Ozturk I, Usman A (2020) Examining the asymmetric effects of globalization and tourism on pollution emissions in South Asia. Environ Sci Pollut Res 27(22):27721–27737CrossRef

Chishti MZ, Ahmad M, Rehman A, Khan MK (2021) Mitigations pathways towards sustainable development: assessing the influence of fiscal and monetary policies on carbon emissions in BRICS economies. J Clean Prod 292:126035CrossRef

Chishti MZ, Dogan E (2022) Analyzing the determinants of renewable energy: the moderating role of technology and macroeconomic uncertainty. Energy & Environment. https://doi.org/10.1177/0958305X221137567

Chua S (1999) Economic growth, liberalization, and the environment: A review of the economic evidence. Annu Rev Environ Resour 24:391–430

Copeland BR, Taylor MS (1994) North-South trade and the environment. Q J Econ 109(3):755–787CrossRef

Daly HE (1991) Steady-state economics, 2nd ed. with new essays, Island press, Covelo, California

Danish WB, Wang Z (2018) Imported technology and CO₂ emission in China: collecting evidence through bound testing and VECM approach. Renew Sustain Energy Rev 82(3):4204–4214CrossRef

Danish BMA, Mahmood N, Zhang JW (2019) Effect of natural resources, renewable energy and economic development on CO₂ emissions in BRICS countries. Sci Total Environ 678:632–638CrossRef

Dar JA, Asif M (2017) Is financial development good for carbon mitigation in India? a regime shift-based cointegration analysis. Carbon Management 8(5–6):435–443CrossRef

Dasgupta S, Laplante B, Mamingi N (2001) Pollution and capital markets in developing countries. J Environ Econ Manag 42(3):310–335CrossRef

Dasgupta S, Laplante B, Wang H, Wheeler D (2002) Confronting the environmental Kuznets curve. J Econ Perspect 16(1):147–168CrossRef

Dhingra VS, Patel P (2021) An empirical analysis of BRICS bond market integration. SCMS J Ind Manage 18(1):22–36

Dhingra VS, Gandhi S, Bulsara HP (2016) Foreign institutional investments in India: an empirical analysis of dynamic interactions with stock market return and volatility. IIMB Manag Rev 28(4):212–224CrossRef

Dinda S (2004) Environmental Kuznets curve hypothesis: a survey. Ecol Econ 49(4):431–455CrossRef

Dinda S (2005) A theoretical basis for the environmental Kuznets curve. Ecol Econ 53(3):403–413CrossRef

Dogan E, Chishti MZ, Alavijeh NK, Tzeremes P (2022) The roles of technology and Kyoto protocol in energy transition towards COP26 targets: Evidence from the novel GMM-PVAR approach for G-7 countries. Technol Forecast Soc Chang 181:121756CrossRef

Duque-Grisales E, Aguilera-Caracuel J, Guerrero-Villegas J, García-Sánchez E (2020) Does green innovation affect the financial performance of Multilatinas? the moderating role of ISO 14001 and R&D investment. Bus Strateg Environ 29(8):3286–3302CrossRef

Eskeland GS, Harrison AE (2003) Moving to greener pastures? multinationals and the pollution haven hypothesis. J Dev Econ 70(1):1–23CrossRef

Friedlingstein P, O’Sullivan M, Jones MW, Andrew RM, Gregor L, Hauck J, Zheng B (2022) Global carbon budget 2022. Earth System Sci Data 14(11):4811–4900CrossRef

Frutos-Bencze D, Bukkavesa K, Kulvanich N (2017) Impact of FDI and trade on environmental quality in the CAFTA-DR region. Appl Econ Lett 24(19):1393–1398CrossRef

Gandhi S, Bulsara HP, Dhingra VS (2013) Changing trend of capital flows: the case of India. Inter J Manage Stud 20(2):71–104

Georgescu-Roegen N (1986) The entropy law and the economic process in retrospect. East Econ J 12(1):3–25

Gill AR, Viswanathan KK, Hassan S (2018) The environmental kuznets curve (EKC) and the environmental problem of the day. Renew Sustain Energy Rev 81(2):1636–1642CrossRef

Granger CWJ (1969) Investigating causal relations by econometric models and cross-spectral methods. Econometrica 37(3):424. https://doi.org/10.2307/1912791CrossRef

Hamilton JT (1995) Pollution as news: Media and stock market reactions to the toxics release inventory data. J Environ Econ Manag 28(1):98–113CrossRef

IPCC (2021) Summary for Policymakers. In: Climate Change 2021: The Physical Science Basis. Contribution of Working Group I to the Sixth Assessment Report of the Intergovernmental Panel on Climate Change [Masson-Delmotte V, Zhai P, Pirani A, Connors SL, Péan C, Berger S, Caud N, Chen Y, Goldfarb L, Gomis MI, Huang M, Leitzell K, Lonnoy E, Matthews JBR, Maycock TK, Waterfield T, Yelekçi O, Yu R, Zhou B, (eds.)]. Cambridge University Press, Cambridge, United Kingdom and New York, NY, USA, pp. 3−32, https://doi.org/10.1017/9781009157896.001

Jahanger A, Chishti MZ, Onwe JC, Awan A (2022) How far renewable energy and globalization are useful to mitigate the environment in Mexico? application of QARDL and spectral causality analysis. Renew Energy 201:514–525CrossRef

Jalil A, Mahmud SF (2009) Environment Kuznets curve for CO₂ emissions: a cointegration analysis for China. Energy Policy 37(12):5167–5172CrossRef

Jensen VMH (1996) Trade and Environment: The pollution haven hypothesis and the industrial flight hypothesis: some perspectives on theory and empirics. University of Oslo, Centre for Development and the Environment

Khan AM, Roy PA (2011) Globalization and the determinants of innovation in BRICS versus OECD economies: A macroeconomic study. J Emerg Knowl Emerging Markets 3:28–45

Kirton J, Larionova M (2022) The First Fifteen Years Of The BRICS. Inter Organisat Res J 17(2):7–30. https://doi.org/10.17323/1996-7845-2022-02-01CrossRef

Klassen RD, McLaughlin CP (1996) The impact of environmental management on firm performance. Manage Sci 42(8):1199–1214CrossRef

Lanoie P, Laplante B, Roy M (1998) Can capital markets create incentives for pollution control? Ecol Econ 26(1):31–41CrossRef

Law SH, Lee WC, Singh N (2018) Revisiting the finance-innovation nexus: Evidence from a non-linear approach. J Innov Knowl 3(3):143–153CrossRef

Liang G (2006) International business and industry life cycle: theory, empirical evidence and policy implications. In Paper accepted for presentation at the annual conference on corporate strategy, Berlin, 19–20 May

Majeed MT, Mazhar M (2019) Financial development and ecological footprint: a global panel data analysis. Pakistan J Commer and Soc Sci (PJCSS) 13(2):487–514

Muhammad B, Khan S (2019) Effect of bilateral FDI, energy consumption, CO₂ emission and capital on economic growth of Asia countries. Energy Rep 5:1305–1315CrossRef

Munasinghe M (1999) Is environmental degradation an inevitable consequence of economic growth: tunneling through the environmental Kuznets curve. Ecol Econ 29(1):89–109CrossRef

O’Neill J (2021) Is the emerging world still emerging?. Financ Develop

Ogbeifun L, Shobande OA (2022) A reevaluation of human capital accumulation and economic growth in OECD. J Public Affairs 22(4):e2602

Ozcan B, Tzeremes PG, Tzeremes NG (2020) Energy consumption, economic growth and environmental degradation in OECD countries. Econ Model 84:203–213CrossRef

Pantelopoulos G (2022) Higher education, gender, and foreign direct investment: evidence from OECD countries. Ind High Educ 36(1):86–93CrossRef

Papa M (2017) Can BRICS lead the way to sustainable development?. UNA-UK. Available at https://www.sustainablegoals.org.uk/can-brics-lead-way-sustainable-development/ Retrieved on 24/08/2022

Patra MD (2021) BRICS Economic Bulletin. BRICS India 2021. Available at https://brics2021.gov.in/brics/public/uploads/docpdf/getdocu-72.pdf

Pesaran MH, Shin Y, Smith RJ (2001) Bounds testing approaches to the analysis of level relationships. J Appl Economet 16(3):289–326CrossRef

Peters GP, Minx JC, Weber CL, Edenhofer O (2011) Growth in emission transfers via international trade from 1990 to 2008. Proc Natl Acad Sci 108(21):8903–8908CrossRef

Rauf A, Liu X, Amin W, Ozturk I, Rehman OU, Hafeez M (2018) Testing EKC hypothesis with energy and sustainable development challenges: a fresh evidence from belt and road initiative economies. Environ Sci Pollut Res 25(32):32066–32080CrossRef

Rock MT (1996) Toward more sustainable development: The environment and industrial policy in Taiwan. Develop Policy Review 14(3):255–272CrossRef

Rothman DS (1998) Environmental kuznets curves—real progress or passing the buck?: a case for consumption-based approaches. Ecol Econ 25(2):177–194CrossRef

Sarkodie SA, Ozturk I (2020) Investigating the environmental Kuznets curve hypothesis in Kenya: a multivariate analysis. Renew Sustain Energy Rev 117:109481CrossRef

Sarkodie SA, Strezov V (2019) Effect of foreign direct investments, economic development and energy consumption on greenhouse gas emissions in developing countries. Sci Total Environ 646:862–871CrossRef

Shahbaz M, Shahzad SJH, Ahmad N, Alam S (2016) Financial development and environmental quality: the way forward. Energy Policy 98:353–364CrossRef

Sharif A, Baris-Tuzemen O, Uzuner G, Ozturk I, Sinha A (2020) Revisiting the role of renewable and non-renewable energy consumption on Turkey’s ecological footprint: Evidence from Quantile ARDL approach. Sustain Cities Soc 57:102–138CrossRef

Stern DI (2004) The rise and fall of the environmental Kuznets curve. World Dev 32(8):1419–1439CrossRef

Stern DI, Common MS, Barbier EB (1996) Economic growth and environmental degradation: the environmental Kuznets curve and sustainable development. World Dev 24(7):1151–1160CrossRef

Suri V, Chapman D (1998) Economic growth, trade and energy: implications for the environmental Kuznets curve. Ecol Econ 25(2):195–208CrossRef

Svirydzenka K (2016) Introducing a new broad-based index of financial development. IMF working paper no. 16/5. https://ssrn.com/abstract=2754950

Tamazian A, Chousa JP, Vadlamannati KC (2009) Does higher economic and financial development lead to environmental degradation: evidence from BRIC countries. Energy Policy 37(1):246–253CrossRef

British Telecommunications (BP) (2016) The role of ICT in reducing carbon emissions in the EU. Available at https://www.bt.com/bt-plc/assets/documents/digital-impact-and-sustainability/our-approach/our-policies-and-reports/ict-carbon-reduction-eu.pdf.

Uchiyama K (2016) Environmental Kuznets curve hypothesis. In: Uchiyama K (ed) Environmental Kuznets curve hypothesis and carbon dioxide emissions. Springer Japan, Tokyo, pp 11–29. https://doi.org/10.1007/978-4-431-55921-4_2CrossRef

Ullah S, Chishti MZ, Majeed MT (2020a) The asymmetric effects of oil price changes on environmental pollution: evidence from the top ten carbon emitters. Environ Sci Pollut Res 27:29623–29635CrossRef

Ullah S, Majeed MT, Chishti MZ (2020b) Examining the asymmetric effects of fiscal policy instruments on environmental quality in Asian economies. Environ Sci Pollut Res 27:38287–38299CrossRef

Usman M, Jahanger A, Makhdum MSA, Balsalobre-Lorente D, Bashir A (2022) How do financial development, energy consumption, natural resources, and globalization affect Arctic countries’ economic growth and environmental quality? Adv Panel Data Simulat Energy 241:122515

Weimin Z, Chishti MZ (2021) Toward sustainable development: assessing the effects of commercial policies on consumption and production-based carbon emissions in developing economies. SAGE Open 11(4):21582440211061580CrossRef

Weimin Z, Chishti MZ, Rehman A, Ahmad M (2022) A pathway toward future sustainability: assessing the influence of innovation shocks on CO₂ emissions in developing economies. Environ Dev Sustain 24(4):4786–4809CrossRef

Wilson D, Purushothaman R (2003) dreaming with BRICs: the path to 2050. Goldman Sachs Global Econ Paper 99:1–24

Xing Y, Kolstad CD (2002) Do lax environmental regulations attract foreign investment? Environ Resour Econ 21(1):1–22CrossRef

Yao X, Yasmeen R, Hussain J, Shah WUH (2021) The repercussions of financial development and corruption on energy efficiency and ecological footprint: Evidence from BRICS and next 11 countries. Energy 223:120063CrossRef

Zamil AAA, Hasan S, Baki SMJ, Adam JM, Zaman I (2019) Emotion detection from speech signals using voting mechanism on classified frames. In 2019 International conference on robotics, electrical and signal processing techniques (ICREST), IEEE 281–285

Zhang YJ (2011) The impact of financial development on carbon emissions: an empirical analysis in China. Energy Policy 39(4):2197–2203CrossRef

Zhang Y, Zhang S (2018) The impacts of GDP, trade structure, exchange rate and FDI inflows on China’s carbon emissions. Energy Policy 120:347–353CrossRef

Titel: Financial development, economic growth, globalisation and environmental quality in BRICS economies: evidence from ARDL bounds test approach
verfasst von: Vaishali S. Dhingra
Publikationsdatum: 06.02.2023
Verlag: Springer US
Erschienen in: Economic Change and Restructuring / Ausgabe 3/2023
Print ISSN: 1573-9414
Elektronische ISSN: 1574-0277
DOI: https://doi.org/10.1007/s10644-022-09481-6

Springer Professional

Abstract

Bitte loggen Sie sich ein, um Zugang zu Ihrer Lizenz zu erhalten.

Sie haben noch keine Lizenz? Dann Informieren Sie sich jetzt über unsere Produkte:

Springer Professional "Wirtschaft+Technik"

Springer Professional "Wirtschaft"

Weitere Artikel der Ausgabe 3/2023

Role of the e-exhibition industry in the green growth of businesses and recovery

Impact of green finance and environmental protection on green economic recovery in South Asian economies: mediating role of FinTech

Determinants of the innovation efficiency of strategic emerging enterprises: evidence from the robust frontiers

Evaluating economic recovery by measuring the COVID-19 spillover impact on business practices: evidence from Asian markets intermediaries

Exploring environmental degradation spillovers in Sub-Saharan Africa: the energy–financial instability nexus

Economic growth, gender inequality, openness of trade, and female labour force participation: a nonlinear ARDL approach

Premium Partner