Testing for Causality Between Economic Growth and Environmental, Social, and Governance Performance: New Evidence from a Global Sample

Sy-Hoa Ho, Rim Oueghlissi () and Riadh El Ferktaji ()
Additional contact information
Rim Oueghlissi: Economic Department, FSJEGJ, University of Jendouba
Riadh El Ferktaji: University of Carthage (ESSAI)

Journal of the Knowledge Economy, 2024, vol. 15, issue 2, No 108, 7769-7787

Abstract: Abstract The current research explores the dynamic causality relationship between a country’s economic growth and its environmental, social, and governance performance in a global sample of 118 countries. Using annual data from 1999 to 2015, this study makes use of Granger causality test for panel data models developed by Dumitrescu and Hurlin (Economic Modelling 29(4), 1450–1460, 2012) and Han et al. (Econometric Reviews, 36, (1–3), 225–240, 2017)’s lag length selection criteria techniques to identify the causal direction across the full sample, low and lower middle-income countries (LMLI) and upper middle (UMI) and high-income (HI) countries. Our empirical findings show the presence of a bidirectional causality between environmental and social performance and economic growth, whereas unidirectional causality is from governance to growth for all countries. Unlike the clear overall pattern of the full sample results, the empirical evidence for different income groups of countries is mixed. The policy implications are provided.

Keywords: Environmental; Social and governance; Economic growth; Granger causality (search for similar items in EconPapers)
JEL-codes: C23 O11 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s13132-023-01406-6 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

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:jknowl:v:15:y:2024:i:2:d:10.1007_s13132-023-01406-6

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/13132

DOI: 10.1007/s13132-023-01406-6

Access Statistics for this article

Journal of the Knowledge Economy is currently edited by Elias G. Carayannis

More articles in Journal of the Knowledge Economy from Springer, Portland International Center for Management of Engineering and Technology (PICMET)
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().