The Impact of the Financial Industry and Globalization on Environmental Quality

Abstract

The objectives of this study were to evaluate the impact of financial development, globalization, and pollution in six MENA countries from 1971 to 2015. Many prior studies empirically explored numerous factors determining environmental quality/pollution across the world. As far as the region of North Africa and the Middle East is concerned, the majority of previous studies ignored the combined role of globalization and financial development in predicting environmental quality using carbon emissions (CO2). Furthermore, we aimed to assess the legitimacy of the environmental Kuznets curve (EKC) theory for MENA nations. For this purpose, a feasible generalized least squares (FGLS) estimator was applied. It was found that the development of the financial sector and globalization significantly affected ecological quality. Regressors such as energy use and foreign direct investment (FDI) had an altogether positive effect on natural quality. These empirical discoveries also demonstrate the acceptability of the EKC hypothesis for MENA nations. This study shows that governments in the Middle East and East Africa need to develop and implement appropriate policies to promote renewable energy sources, such as wind, solar, biofuel, and heat production, which help to reduce carbon dioxide emissions and promote sustainable economic development.

The relationship between financial sector development and individual economic well-being in Mena region: Panel feasible generalized least squares between 2005 and 2022

“…In response to these challenges, the decision to estimate a Panel Feasible Generalized Least Squares (PFGLS) model was made. PFGLS offers distinct advantages in handling Heteroskedasticity (Mumuni & Mwimba, 2023;Zhang et al, 2023) through weighted estimation while potentially capturing additional variation that the Fixed Effects Two-way model might overlook. Furthermore, by adopting the PFGLS approach presented in Table 7, it was possible to maintain the statistical significance of the estimated coefficients, ensuring the reliability of the analysis and enhancing th e overall robustness of the model.…”

The Death Penalty in Jordan: A Critical Examination of its Application and Abolition Debate

“…Abolishing the death penalty improves Jordan's international standing (Amnesty International, 2019). It fosters public discussion on ethical and moral implications (Cheng et al, 2023).…”

Taksonomi Fintech: Klasifikasi dan Implikasi Teknologi Finansial di Era Digital

“…Di wilayah MENA, perkembangan sektor keuangan dan globalisasi telah ditemukan secara signifikan mempengaruhi kualitas lingkungan, menekankan perlunya kebijakan yang tepat untuk mempromosikan pembangunan ekonomi yang berkelanjutan(J. Zhang et al 2023). Lembaga keuangan tradisional harus beradaptasi dengan cepat terhadap perubahan ini agar tetap kompetitif, sementara peraturan keuangan terus berkembang untuk memastikan stabilitas sistem dan perlindungan konsumen.…”

“…peningkatan, mereka juga menimbulkan tantangan bagi regulator dan peserta industri dalam hal manajemen risiko, kepatuhan terhadap peraturan, dan stabilitas pasar (Zhu and Chu 2023). Memahami dampak fintech pada pasar keuangan tradisional, seperti berbagai tingkat pengaruh pada berbagai sektor seperti saham, trust, asuransi, dan perbankan, sangat penting untuk menavigasi lanskap sektor keuangan yang berkembang(C. Zhang et al 2023).…”

“…Studi telah menunjukkan bahwa adopsi fintech secara signifikan mendorong praktik ekonomi sirkular organisasi dan kinerja keberlanjutan, dengan akses ke keuangan dan kapasitas penyerapan memainkan peran moderasi (C. Xu et al 2023). Selain itu, kebijakan pemerintah memainkan peran penting dalam mempromosikan inovasi berkelanjutan, kinerja bisnis, dan manajemen risiko di industri keuangan, menekankan pentingnya komitmen berkelanjutan perusahaan dan kecukupan modal(C. Zhang et al 2023). Selain itu, pendekatan berbasis persaingan telah diidentifikasi sebagai alat yang berharga bagi pembuat kebijakan untuk mendorong pencarian pengetahuan eksternal dan inovasi, berkontribusi pada debat kebijakan inovasi (Wang et al 2023).…”