Abstract
This study delves into the intricate relationship between financial inclusion (FIC) and economic development (ED) within the context of QUAD nations, including the USA, Australia, India, and Japan. Using panel data spanning from 2000 to 2021, the research investigates this relationship by employing various statistical techniques. Initially, the Jarque–Bera (JB) normality test highlights the non-normal distribution of the data. Furthermore, the findings reveal varying slopes and cross-sectional interdependence among the variables, while the panel unit root test confirms their non-stationarity. Consequently, the adoption of the method of moment quantile regression is deemed appropriate for the analysis. The study’s results uncover a negative association between FIC and total natural resource rent (TNRR), while renewable-energy usage (REU), ED, and foreign direct investment (FDI) exhibit a positive relationship with FIC. Notably, the impact of TNRR on FIC diminishes at higher quantiles, indicating a diminishing effect. Similarly, the influence of REU and ED on FIC also decreases at higher quantiles, suggesting a reduced contribution as other sectors gain prominence. Conversely, FDI positively affects FIC, with a more pronounced impact observed at higher quantiles. Policy recommendations for QUAD nations include enhancing FIC initiatives, promoting REU, fostering balanced ED, attracting FDI, and encouraging collaborative efforts among the nations. Furthermore, it is imperative for developing nations to implement widespread financial literacy programs specifically targeting vulnerable and marginalized populations, equipping individuals with essential knowledge to make informed financial decisions and gain access to formal financial services.
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The idea of the current paper is first presented by Dr. Muhammad Imran and with the help of the co-author, he accomplished his task. Dr. Muhammad Imran designed the methodology section and simulated and listed the results. Prof. Dr. Zhang Jijian appreciated the idea and helped in drafting and, particularly, revising the manuscript where they put forward several modifications and amendments at different stages of the manuscript. The work was completed under the supervision and guidance of Prof. Dr. Zhang Jijian, whereas all the authors read and approved the final manuscript.
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Imran, M., Jijian, Z. Exploring the relationship between financial inclusion and natural resource utilization in QUAD economies. Environ Sci Pollut Res 30, 122958–122971 (2023). https://doi.org/10.1007/s11356-023-30907-9
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DOI: https://doi.org/10.1007/s11356-023-30907-9