Financial integration and economic growth: impact of renewable energy investments, technology transfer, and climate change on Europe and central Asian economies

Abdelmohsen A. Nassani (), Muhammad Imran (), Shiraz Khan (), Khalid Zaman (), Haroon ur Rashid Khan () and Mohamed Haffar ()
Additional contact information
Abdelmohsen A. Nassani: King Saud University
Muhammad Imran: The University of Haripur
Shiraz Khan: The University of Haripur
Khalid Zaman: The University of Haripur
Haroon ur Rashid Khan: The University of Wollongong in Dubai
Mohamed Haffar: University of Birmingham

Financial Innovation, 2025, vol. 11, issue 1, 1-24

Abstract: Abstract Financial integration plays an important role in fostering global economic growth. Energy demand, technology transfer, sustainable production, and climate change have emerged as key drivers of sustainable development. This study explores the influence of financial integration, bolstered by renewable energy-induced trade, industry-driven technology, and environmental concerns, on regional economic growth. This study analyzes a panel of 39 high- and upper-middle-income European and Central Asian countries in 2017–2021. Using a panel generalized method of moments estimator, we reveal an inverted U-shaped relationship between regional economic growth and carbon emissions. Moreover, renewable energy-induced trade contributes positively to regional growth while trade openness and technology transfer further enhance this growth. Industry-driven technology negatively impacts regional growth owing to inadequate financial integration. The absence of sustainable energy infrastructure and industrialization also negatively impacts regional growth. Our study underscores the importance of increasing financial integration to promote sustainable energy-driven trade openness and technology transfer in line with the United Nations’ sustainable development agenda.

Keywords: Financial innovation; Sustainable energy demand; Technology innovation; Trade policy; Industrialization (search for similar items in EconPapers)
Date: 2025
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1186/s40854-024-00733-0 Abstract (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:fininn:v:11:y:2025:i:1:d:10.1186_s40854-024-00733-0

Ordering information: This journal article can be ordered from
http://www.springer. ... nomics/journal/40589

DOI: 10.1186/s40854-024-00733-0

Access Statistics for this article

Financial Innovation is currently edited by J. Leon Zhao and Zongyi

More articles in Financial Innovation from Springer, Southwestern University of Finance and Economics
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().