Does the Kuznets curve apply for financial development and environmental degradation in the Asia-Pacific region?

Vo, Duc Hong; Nguyen, Nghia; Hồ, Chí Minh; Nguyen, Thang Cong

doi:10.1016/j.heliyon.2021.e06708

Cited by 36 publications

(19 citation statements)

References 44 publications

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“…Results in Table 1 indicate that the number of principal components for each emerging country in Asia varies from one to two. To develop a single index for each country, an 85 per cent threshold, which was highly favourable in previous studies such as He et al 2017 andVo et al (2021), is selected. The corresponding IVCs of principal components are used as the weights.…”

Section: Data and Research Methodsmentioning

confidence: 99%

Does financial inclusion improve bank performance in the Asian region?

Nguyen

2021

Asian-Pac Economic Lit

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World Bank considers financial inclusion a fundamental and practical mechanism for reducing poverty and boosting prosperity in developing and emerging markets. However, the direct benefits of financial inclusion to bank performance appear to have been largely ignored in the academic literature, in particular in the emerging markets in the Asian region. Unlike previous studies, both bank and country characteristics are considered in this paper. The financial inclusion index is estimated using four sub-indices that can be classified into two groups: the penetration and utilisation of financial products and services. Principal component analysis and dynamic generalized method of moments (GMM) are used on a sample of 1507 banks in emerging markets in Asia for the 2008-17 period. Findings indicate that, across various scenarios, financial inclusion provides a positive and significant contribution to bank performance in the Asian region. In addition, a larger distance to the bankruptcy of banks and higher national economic growth will enhance bank performance.

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Section: Data and Research Methodsmentioning

confidence: 99%

Does financial inclusion improve bank performance in the Asian region?

Nguyen

2021

Asian-Pac Economic Lit

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“…It is often impossible for wealth-constraint or financially excluded firms to employ capital intensive production since the investments are non-convex and permanent. Therefore, small firms will opt to use labour-intensive production lines, which presumably leads to the increasing urbanization and environmental degradation rate and deters growth [ 35 – 37 ]. On the supply side, the financial market significantly reduces the illiquidity of the long-term investments by creating the exit mechanism for investors, who are about to receive the income shock and likely want to convert their illiquid assets to the medium of exchanges [ 38 , 39 ].…”

Section: Literature Reviewmentioning

confidence: 99%

The convergence of financial inclusion across provinces in Vietnam: A novel approach

Nguyen

Hồ

et al. 2021

PLoS ONE

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Financial inclusion has generally been considered an effective mechanism to support economic growth and reduce Vietnam’s poverty for the last decade. While the importance of financial inclusion to economic growth or macroeconomic stability has been widely examined, it appears that the degree of financial inclusion across Vietnam has not attracted attention from academics and policymakers. In particular, a convergence of financial inclusion across provinces in Vietnam has never been examined. This paper is conducted to examine the static and dynamic distributions of financial inclusion across provinces in Vietnam. The latest three biennial surveys from 2014 to 2018 and a novel approach known as the dynamic kernel density function are used in this study. Our results indicate that Vietnam’s economic growth and development over the 2014–2018 period is relatively inclusive. The evidence also demonstrates that households provided with access to multiple sources of finance depend significantly on the provincial level of income. We also find that provinces located in the national key economic regions, including (i) the Northern region and (ii) the Southern region, appear to achieve a higher degree of financial inclusiveness. Our findings also confirm the catching-up from the financially disadvantaged provinces to financially advantaged provinces locating within the key economic regions. We argue that understanding the asymmetric effect of economic growth on financial inclusion will be helpful for the Vietnamese government in formulating and implementing economic policies promptly to secure the sustainable and inclusive goals of economic growth and development in the future.

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“…However, different results were obtained by P. Y. Chen et al (2016) for 188 countries in 1993-2010, Apergis & Ozturk (2015) in 14 Asian countries, Noor &Saputra (2020), andVo et al (2021) in 26 countries that do not demonstrate the existence of EKC. In a narrower scope, that is Indonesia, there are several studies indicating contradictory results.…”

Section: Introductionmentioning

confidence: 79%

“…This study used such analysis method as the Autoregressive Distributed Lag (ARDL) based on time series data, as suggested by Alam et al (2016), Ali et al (2017), Kusumawardani & Dewi (2020), Ridzuan et al (2020), Sugiawan &Managi (2016), andVo et al (2021); and panel data regression models (Ersin, 2016;Le & Quah, 2018;Nikensari et al, 2019;Tatoğlu & Polat, 2021).…”

Section: Methodsmentioning

confidence: 99%

Existence of the Environmental Kuznets Curve and its relevance to SDGs policy: A study in Java region, Indonesia

Ibrahim

Abbas²

2022

JSeD

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The debate on economic growth as a trigger or solution to environmental damage is the driving force behind this research. This study examines whether there is an advanced stage of the Environmental Kuznets Curve (EKC) that forms a curve resembling the letter N in Java province, Indonesia. This study used a panel data regression model with the main variableof CO2 emissions and GDP per capita. This research demonstrated that, in the short term, per capita income growth caused damage to the environment. However, this relationship was different in the long run and eventually formed an N-shaped curve. The existence of an N-shaped EKC was detected, but not significant. The relationship between population growth rates, income inequality and the Sustainable Development Goals (SDGs) with CO2 emissions as well as EKC turning points were also investigated in this study. The study results included N-shaped EKC detected in Java with the first turning point of Rp 154,297,936 and the second turning point of Rp 1,136,629,791. Population growth rate was proven not to affect CO2 emissions, in contrast to income inequality and the SDGs agreement which affected emissions in Java. Raising public awareness, paying attention to energy use, initiating technological innovations, and enforcing pro-environment policies are recommended to be implemented in Java and across Indonesia.JEL Classification: Q01; Q11; R11

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Does the Kuznets curve apply for financial development and environmental degradation in the Asia-Pacific region?

Cited by 36 publications

References 44 publications

Does financial inclusion improve bank performance in the Asian region?

Does financial inclusion improve bank performance in the Asian region?

The convergence of financial inclusion across provinces in Vietnam: A novel approach

Existence of the Environmental Kuznets Curve and its relevance to SDGs policy: A study in Java region, Indonesia

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