Do financial technology and financial development lessen shadow economy? Evidence from BRICST economies using heterogenous bootstrap panel causality

Rahman, Sami Ur; Faisal, Faisal; Ali, Adnan; Sulimany, Hamid Ghazi H; Bazhair, Ayman Hassan

doi:10.1016/j.qref.2023.06.005

Cited by 7 publications

(3 citation statements)

References 66 publications

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“…The proponents of a clean environment claim that FD enables technological advancement and cleaner output through investments in manufacturing process technology [20,21]. In contrast, others believe that expanding financial services leads to increased utilization and extraction of environmental resources [11]. Fan et al [22] found a direct positive link between FD and EF in BRICST countries, implying that rapid expansion of financial markets perpetuates resource demand and exacerbates environmental degradation.…”

Section: Literature Reviewmentioning

confidence: 99%

“…EC differs from country to country, ranging from higher levels of coal and oil use to significant investments in green energy, directly impacting environmental policies and EF [10]. Another factor to consider is the financial systems of these countries, which can restrict their capacity to finance environmental management and sustainable infrastructure projects, thus affecting their overall EF [11]. By considering such a wide range of countries, this research seeks to obtain information used in policymaking in these states, opening the door to a more extensive discussion regarding sustainable development and environmental protection in rapidly growing economies.…”

Section: Introductionmentioning

confidence: 99%

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The Symmetric Effect of Financial Development, Human Capital and Urbanization on Ecological Footprint: Insights from BRICST Economies

Majeed,

Wang,

Zhou

et al. 2024

Sustainability

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Environmental degradation is a serious concern and its prevention strategies have become a central topic worldwide. It is widely accepted that improving environmental quality is essential for advancing sustainable development and societal well-being. From this perspective, the present research employed panel data from 1990 to 2022 from BRICST economies to assess the effects of financial development, human capital, urban population, energy consumption, and economic growth on environmental quality regarding ecological footprint. This study employs second-generation empirical techniques such as CIPS and CADF unit root tests, Westerlund bootstrap cointegration, and DFE/MG/PMG-ARDL models to examine the connections among the studied variables. The empirical findings of this study uncover that in the BRICST countries, environmental quality is exacerbated by human capital, urban population, energy consumption, and economic growth. On the other hand, financial development and GDP2 help improve environmental quality. Additionally, the interaction of the term financial development results with the terms human capital and urban population has a negative effect and reduces ecological footprint by improving environmental quality. From the policy perspective, the selected countries must implement policies that promote equitable financial resources, plan sustainable urbanization to promote compact cities and green infrastructure, and invest in green energy to address the adverse environmental consequences in BRICST economies.

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Section: Literature Reviewmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

The Symmetric Effect of Financial Development, Human Capital and Urbanization on Ecological Footprint: Insights from BRICST Economies

Majeed,

Wang,

Zhou

et al. 2024

Sustainability

View full text Add to dashboard Cite

show abstract

“…Additionally, the integration of technology, such as digitalization in finance or the use of financial technology, plays a crucial role in the development of the financial sector, particularly in banking [ 22 , 23 ]. This technological advancement can have implications for the prevalence of shadow economic activities and influence overall sectoral growth [ 24 ].…”

Section: Introductionmentioning

confidence: 99%

Impacts of financial development and green trade on the shadow economy: An insight of eagle countries using Bayesian approaches

Thanh,

Diep,

Tram

2024

PLoS ONE

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The existence of a shadow economy is recognized as an impediment to sustainable development. By applying the Bayesian approaches, the current article investigates the linkage between financial development, green trade, and the scope of the shadow economy, aiming to contribute to a comprehensive understanding of how these factors address the challenge posed by the shadow economy in Emerging and Growth-Leading Economies (EAGLE) from 2003 to 2016. The results demonstrate that (i) The progress of the financial sector is expected to diminish the scale of the shadow economy. Specifically, the expansion of financial institutions and markets has a strong and negative influence on the shadow economy. (ii) Increased involvement in green trade is likely to result in a decreased shadow economy. Empirical findings provide evidence for effective policymaking in simultaneously promoting sustainable trade practices, strengthening financial systems, and curtailing informal economic activities for inclusive economic development.

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Drivers of EPS Adoption: Exploring the Influence of Environmental Consciousness, Risk Perception, and Trust

Hilale,

Chakor

2024

Information Systems Engineering and Management

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Do financial technology and financial development lessen shadow economy? Evidence from BRICST economies using heterogenous bootstrap panel causality

Cited by 7 publications

References 66 publications

The Symmetric Effect of Financial Development, Human Capital and Urbanization on Ecological Footprint: Insights from BRICST Economies

The Symmetric Effect of Financial Development, Human Capital and Urbanization on Ecological Footprint: Insights from BRICST Economies

Impacts of financial development and green trade on the shadow economy: An insight of eagle countries using Bayesian approaches

Drivers of EPS Adoption: Exploring the Influence of Environmental Consciousness, Risk Perception, and Trust

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