Do Clean Energy and Financial Innovation Induce SME Performance? Clarifying the Nexus between Financial Innovation, Technological Innovation, Clean Energy, Environmental Degradation, and SMEs Performance in Bangladesh

Md. Qamruzzaman and Rajnish Kler
Additional contact information
Md. Qamruzzaman: School of Business and Economics, United International University, Bangladesh
Rajnish Kler: Department of Commerce, Motilal Nehru College (E), University of Delhi, Delhi, India.

International Journal of Energy Economics and Policy, 2023, vol. 13, issue 3, 313-324

Abstract: The economic contribution of small and medium enterprises (SMEs) has been well appreciated and documented in the literature. On the other hand, another domain of studies has concentrated on discovering the key determinants of SMEs' growth and survival. The motivation of the study is to gauge the nexus between financial innovation, technological innovation, clean energy, environmental degradation, and SME performance in Bangladesh for the period 1991-2019. The study has implemented Autoregressive Distributed Lagged (ARDL), Nonlinear ARDL, and the Toda-Yamamoto causality test. Referring to output derived with ARDL, a study has exposed a positive and statistically significant link between explanatory variables, that is, financial innovation, technological innovation, and clean energy consumption and SMEs' contribution to GDP both in the long-run and short-run. At the same time, environmental degradation has been revealed to be adversely connected to SME performance. The results of the standard Wald test have established an asymmetric association between explained and explanatory variables in the long-run and short run. In terms of the directional causality test, the study disclosed bidirectional causal effects running between clean energy and SMEs performance [CE SME], foreign direct investment, and SMEs performance [FDI SME]. Based on the study findings, the policy suggestions have been introduced in light of future development in SMEs in Bangladesh.

Keywords: Financial Innovation; Technological Innovation; Clean Energy; Environmental Degradation; SME (search for similar items in EconPapers)
JEL-codes: G29 L16 O13 O33 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://www.econjournals.com/index.php/ijeep/article/download/14185/7310 (application/pdf)
https://www.econjournals.com/index.php/ijeep/article/view/14185 (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:eco:journ2:2023-03-36

Access Statistics for this article

International Journal of Energy Economics and Policy is currently edited by Ilhan Ozturk

More articles in International Journal of Energy Economics and Policy from Econjournals
Bibliographic data for series maintained by Ilhan Ozturk ().