Is trade, energy consumption and economic growth threat to environmental quality in Bahrain–evidence from VECM and ARDL bound test approach

Domestic capital adequacy and sustainable economic growth are heavily reliant on technological advancement, managerial know-how, and money supply in the economy. In this context, FDI has emerged and is placed at an apex position due to its unprecedented impact on achieving sustainability across the world. The motivation of this study is to scale the effects of good governance, financial inclusion, and environmental quality on inflows of FDI in BRI nations for the period from 1990 to 2020. Several panel econometrical tools have been applied, for example, CDS, CADF, CIPS, CS-ARDL, and NARDL, to investigate the association and explanatory variables elasticity on inflows of FDI in BRI nations. CDS results revealed that research units share common dynamism and second-generation panel unit root test-documented variables are stationary after the first difference. The results of the panel co-integration with an error-correction term confirmed the empirical equation’s long-run association. According to the CS-ARDL assessment, positive and statistically significant impacts have been documented, from financial inclusion, good governance, and environmental quality to FDI inflows. Study findings suggest that governmental effectiveness, easy access to financial services and benefits, and a less-regulated environmental concern economy motivate capital transfer decisions. The asymmetric assessment documented a long-run asymmetric association between FI, GG, EQ, and FDI. Referring to asymmetric shock elasticity, the study disclosed a positive and statistically significant relation to FDI inflows, especially in the long run. The directional causality test documented bidirectional causality running between FI, EQ, GG, and FDI [FI←→FDI; GG←→FDI; and EQ←→FDI] in the short-run.

Section: Introductionmentioning

confidence: 99%

Do environmental quality, financial inclusion, and good governance ensure the FDI sustainably in Belt and Road countries? Evidence from an application of CS-ARDL and NARDL

Jinru

Qamruzzaman

Hangyu

et al. 2022

“…In recent literature, a growing amount of research and discussion has been devoted to determining whether or not there is a connection between the responsible and socially sustainable conduct of businesses and their financial performance in the long run (Lassala et al, 2017;Ganlin et al, 2021;Alam, 2022). Due to the extensive globalization that markets have undergone and the growing demand of stakeholders for social commitment and transparency from businesses, social, environmental, and economic actions with sustainability criteria have been implemented (Adams, 2002;Moneva & Eduardo, 2008).…”

mentioning

confidence: 99%

The impact of environmental disclosure and the quality of financial disclosure and IT adoption on firm performance: Does corporate governance ensure sustainability?

Jiang

Qamruzzaman

2023

Introduction: The study’s motivation is to investigate the role of environmental and financial disclosure, IT adoption, and good governance on firms’ sustainability from 1990–2019. A sample of 75 financial institutions enlisted in Bangladesh’s capital market was considered for relevant data collection.Methodology: Secondary data sources were used for data accumulation, including annual reports of target FIs, economic review reports, and central banks publication. Several econometrical techniques have been implemented to document the empirical nexus and the elasticities of explained variables on firm performance.Findings: In terms of baseline assessment, the study revealed a positive and statistically significant association between a firm’s sustainability and target explanatory variables. Furthermore, the study extended the empirical valuation by implementing a system-GMM and documented a positive linkage between financial and environmental disclosure, IT adaptation, good governance, and the firm’s performance sustainability.Discussion: These study findings suggest that information symmetry, investor protection, and access to financial services foster and stabilize the firms’ performance. Concerning corporate governance’s mediating effect, the study established a mediating role with positive influences on financial performance augmentation. On the policy ground, the study postulated that financial policymakers should address fairness and integrity in disclosing information to the public. Enforcement has to be initiated to ensure good governance.

“…However, trade openness and foreign aid helped to reduce emissions. Alam (2022) investigated and also found that trade helped reduce CO 2 emissions in Oman during 1980-2020. Moreover, Joshua and Bekun (2020) investigated South Africa from 1970 to 2017 and found that total natural resources rents showed a significant contribution to pollutant emissions.…”

Section: Literature Reviewmentioning

confidence: 99%

Oil rents, economic growth, and CO2 emissions in 13 OPEC member economies: Asymmetry analyses

Mahmood

Saqib

2022

Oil rents significantly contribute to income in OPEC member economies and could have environmental consequences. The present study explores the asymmetrical effects of oil rents on CO2 emissions in 13 current OPEC economies using a period 1970–2019, and also tests the Environmental Kuznets Curve (EKC) hypothesis. Long-run results show that economic growth has a positive effect, and its square term has a negative effect on CO2 emissions in Algeria, Congo, Gabon, Kuwait, and Saudi Arabia, which validate the EKC in these countries. However, a U-shaped effect of income growth on emissions is substantiated in Angola. Moreover, rising oil rents have positive effects on CO2 emissions in Saudi Arabia, Angola, Congo, Equatorial Guinea, Iran, Iraq, Kuwait, and Libya, and have negative impacts in Algeria, Nigeria, and the UAE. Decreasing oil rents reduce CO2 emissions in Angola, Equatorial Guinea, Libya, and Saudi Arabia, and increase emissions in Algeria. Moreover, asymmetrical effects of oil rents on emissions are found in Angola, Congo, Iran, Iraq, Kuwait, Nigeria, Equatorial Guinea, Saudi Arabia, and the UAE. The short-run results show that the EKC is validated in Algeria, Congo, and Libya. However, economic growth shows a monotonic positive impact on emissions in Nigeria, the UAE, and Venezuela. Increasing oil rents show a positive impact on emissions in Angola, Congo, Iran, and Kuwait and carry a negative impact in Algeria and the UAE. In addition, decreasing oil rents increase CO2 emissions in Algeria, Gabon, Nigeria, and Saudi Arabia. We recommend Angola, Congo, Equatorial Guinea, Iran, Iraq, Kuwait, Libya, and Saudi Arabia to adopt tight environmental policies in times of increasing oil rents to avoid the negative environmental consequences of oil rents.