Financial Institutional and Market Deepening, and Environmental Quality Nexus: A Case Study in G-11 Economies Using CS-ARDL

Usman Mehmood, Salman Tariq, Zia ul Haq, Ephraim Bonah Agyekum, Solomon Eghosa Uhunamure (), Karabo Shale, Hasan Nawaz, Shafqat Ali and Ammar Hameed
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Usman Mehmood: Remote Sensing, GIS and Climatic Research Lab, National Center of GIS and Space Applications, Centre for Remote Sensing, University of the Punjab, Lahore 54590, Pakistan
Salman Tariq: Remote Sensing, GIS and Climatic Research Lab, National Center of GIS and Space Applications, Department of Space Science, University of the Punjab, Lahore 54590, Pakistan
Zia ul Haq: Remote Sensing, GIS and Climatic Research Lab, National Center of GIS and Space Applications, Department of Space Science, University of the Punjab, Lahore 54590, Pakistan
Ephraim Bonah Agyekum: Department of Nuclear and Renewable Energy, Ural Federal University Named after the First President of Russia Boris Yeltsin, 19 Mira Street, Eka-Terinburg 620002, Russia
Solomon Eghosa Uhunamure: Faculty of Applied Sciences, Cape Peninsula University of Technology, P.O. Box 652, Cape Town 8000, South Africa
Karabo Shale: Faculty of Applied Sciences, Cape Peninsula University of Technology, P.O. Box 652, Cape Town 8000, South Africa
Hasan Nawaz: Remote Sensing, GIS and Climatic Research Lab, National Center of GIS and Space Applications, Centre for Remote Sensing, University of the Punjab, Lahore 54590, Pakistan
Shafqat Ali: Remote Sensing, GIS and Climatic Research Lab, National Center of GIS and Space Applications, Centre for Remote Sensing, University of the Punjab, Lahore 54590, Pakistan
Ammar Hameed: Remote Sensing, GIS and Climatic Research Lab, National Center of GIS and Space Applications, Centre for Remote Sensing, University of the Punjab, Lahore 54590, Pakistan

IJERPH, 2022, vol. 19, issue 19, 1-19

Abstract: This study presents a new insight into the dynamic relationship between financial institutional deepening (FID), financial deepening, financial market deepening (FMD), foreign direct investment (FDI), economic growth (GDP), population, and carbon dioxide emissions (CO 2 e) in the G-11 economies by employing a cross-sectionally augmented autoregressive distributed lag (CS-ARDL) approach during 1990–2019. The outcomes from the CS-ARDL and dynamic common correlated effects mean group (DCCEMG) models shows that financial deepening, GDP, FDI, and population degraded environmental quality both in the short run and the long run. Contrary to this, FID and FMD improves environmental quality in these countries. The government should work to maximize financial institutions (access, depth, efficiency) and financial markets (access, depth, efficiency) to reduce the CO 2 e. A strong positive and in-phase correlation of CO 2 e with economic growth and population is observed for G-11 countries. These results suggest policy makers should further improve financial institutions by creating opportunities for their populations. Moreover, the governments of G-11 countries should revise their foreign direct investment policies and attention should be given to import efficient means of energy production.

Keywords: financial deepening; wavelet coherence; foreign direct investment; economic growth; CS-ARDL (search for similar items in EconPapers)
JEL-codes: I I1 I3 Q Q5 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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