Examining the bidirectional nexus between financial development and green growth: International evidence through the roles of human capital and education expenditure

Thanh Ngo, Hai Hong Trinh, Ilham Haouas and Subhan Ullah

Resources Policy, 2022, vol. 79, issue C

Abstract: In the context of the 2030 Agenda for Sustainable Development by the United Nations, the functionality of financial development is undeniable in the wider economy toward Sustainable Development Goals (SDGs). Using novel panel data of 36 countries over the last decades, the study sheds light on the bi-directional nexus between financial development and green growth where human capital and education expenditure present their central roles in sustainable development. The study provides critical findings to the existing literature on climate change, environment, and sustainability. Following the empirical findings, we provide important insights to regulators, policy makers, and organizations in investigating the substantial contributions of financial development including financial markets and financial institutions where their accessibility, depth, and efficiency need a thorough consideration toward SDGs and mitigating climate change impacts worldwide. Apart from using the multidimensional proxies, the empirical findings are validated by a set of econometric approaches.

Keywords: Financial development; Green growth; Human capital; Generalized method of moment (GMM); Sustainability; Education expenditure (search for similar items in EconPapers)
JEL-codes: C33 O44 O57 Q56 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (13)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jrpoli:v:79:y:2022:i:c:s030142072200407x

DOI: 10.1016/j.resourpol.2022.102964

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