The impact of financial development on environmental sustainability: A European perspective

Xu, Bao-Chang; Li, Sihui; Afzal, Ayesha; Mirza, Nawazish; Zhang, Meng

doi:10.1016/j.resourpol.2022.102814

Cited by 61 publications

(21 citation statements)

References 67 publications

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“…Moreover, the findings of Petrović and Lobanov (2022) and Xu et al (2022) regarding financial development and those of Ibrahim (2022) and Iqbal and Kalim (2023) regarding the findings of trade liberalization are quite similar to the findings of this research. Both are responsible for environmental deterioration.…”

Section: Resultssupporting

confidence: 85%

“…Many recent studies have found it responsible for environmental deterioration. For example, Acheampong (2019), Ganda (2021), Petrović and Lobanov (2022) and Xu et al (2022) have found domestic credit responsible for environmental deterioration. Moreover, trade liberalization enlargement represents an increase in production and limitless expansion in output represents ecological deterioration.…”

Section: Literature Reviewmentioning

confidence: 99%

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Environmental sustainability through aggregate demand behavior – Does knowledge economy have global responsibility?

Iqbal

Kalim

Ul-Durar

et al. 2023

JGR

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Purpose This study aims to consider environmental sustainability, a global challenge under the preview of sustainable development goals, highlighting the significance of knowledge economy in attaining sustainable aggregate demand behavior globally. For this purpose, 155 countries that have data available from 1995 to 2021 were selected. The purpose of selecting these countries is to test the global responsibility of the knowledge economy to attain environmental sustainability. Design/methodology/approach Results are estimated with the help of panel quantile regression. The empirical existence of aggregate demand-based environmental Kuznets curve (EKC) was tested using non-linear tests. Moreover, principal component analysis has been incorporated to construct the knowledge economy index. Findings U-shaped aggregate demand-based EKC at global level is validated. However, environmental deterioration increases with an additional escalation after US$497.945m in aggregate demand. As a determinant, the knowledge economy is reducing CO2 emissions. The knowledge economy has played a significant role in global responsibility, shifting the EKC downward and extending the CO2 reduction phase for every selected country. Further, urbanization, energy intensity, financial development and trade openness significantly deteriorate the environmental quality. Originality/value This study contains the empirical existence of aggregate demand-based EKC. The role of the knowledge economy is examined through an index which is calculated by using four pillars of the knowledge economy (technology, innovations, education and institutions). This study is based on a combined panel of all the countries for which the data was available.

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Section: Resultssupporting

confidence: 85%

Section: Literature Reviewmentioning

confidence: 99%

Environmental sustainability through aggregate demand behavior – Does knowledge economy have global responsibility?

Iqbal

Kalim

Ul-Durar

et al. 2023

JGR

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“…Supporting research has found that digital finance contributes to economic growth by increasing capital from financial institutions and boosting savings as well as consumption (Sun and Tang, 2022). It has also been found that digital finance contributes to economic growth through upgrading of industrial structures (Xu et al ., 2022). So technology has a significant role in the financial industry today.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Recently, multiple studies have been conducted on the financial sector and the financial depth-economic growth association (Awais et al ., 2023; Godspower-Akpomiemie and Ojah, 2021; Suljić Nikolaj et al. , 2022; Xu et al ., 2022). Research has found a cointegration between financial deepening and economic development (Nawaz et al ., 2019; Zhang and Zhou, 2021).…”

Section: Literature Reviewmentioning

confidence: 99%

The links between financial depth and economic variables: evidence from Poland

Afzal,

Firdousi,

Mahmood

2023

JRF

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PurposeThe purpose of this paper is to examine the relationship that exists between financial depth and economic growth in Poland for the years 1995–2019. This paper utilizes integration and co-integration techniques to capture the long-term and short-term linkages between various determinants of financial deepening, economic growth and a few selected growth variables. Financial depth is measured using two distinct measures: the monetization ratio (i.e. the ratio of broad money in the economy to the gross domestic product (GDP)) and the domestic credit provided to private sector by banks.Design/methodology/approachThe paper uses a combination of Augmented Dickey–Fuller (ADF) and Phillips–Perron unit root tests, autoregressive distributive lag (ARDL) model and Granger causality tests to estimate results.FindingsThis paper finds that there is a bidirectional causal relationship between financial deepening and economic growth in the short run, but this relationship does not hold in the long run. The control variables comprising trade volume, investment, government spending and volatility in oil prices and inflation have a significant, positive relationship with economic development in the long run.Originality/valueThe findings are indicative of the need for further strengthening of the financial sector in Poland, such that the relationship between financial depth and economic growth is substantiated in the long run. This paper also finds room for more stringent regulation of the financial system and transparency in information available.

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“…Moreover, profit from operational efficiency is one of the core resources to improve the risk management capacity of commercial banks. Not only that, it plays a core role in the development of the financial system, which impacts not only socioeconomic but also environmental sustainability (Xu et al , 2022). With such an urgent meaning, improving business performance is the goal of any commercial bank.…”

Section: Introductionmentioning

confidence: 99%

The impact of feminism on bank performance: the case of Vietnam

Nguyen,

Dang,

Trinh

2023

RAF

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Purpose This study aims to evaluate the impact of board characteristics on bank performance at the commercial bank in Vietnam. Design/methodology/approach By running the pool OLS, fixed-effect and random-effect models with a panel data set of 294 observations from 2008 to 2021, the authors have examined determinants of bank performance. Findings The research results show that bank size, governance efficiency, capital adequacy ratio and economic growth have a positive effect while credit risk has a negative relationship with the commercial bank’s performance. Originality/value In particular, the result shows the relationship between chief executive officers’ (CEOs) gender and bank performance. Commercial banks led by female CEOs have lower bank performance than that led by male CEOs. However, this impact magnitude is not significant. The research results are the basis to propose recommendations to improve the Vietnamese commercial bank’s performance.

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The impact of financial development on environmental sustainability: A European perspective

Cited by 61 publications

References 67 publications

Environmental sustainability through aggregate demand behavior – Does knowledge economy have global responsibility?

Environmental sustainability through aggregate demand behavior – Does knowledge economy have global responsibility?

The links between financial depth and economic variables: evidence from Poland

The impact of feminism on bank performance: the case of Vietnam

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