Financial Development, Exports, and Industrial Pollution: Evidence from Lower and Upper Middle-Income Countries

Hafiz Muhammad Abubakar Siddique, Areesha Aziz, Naima Shehzadi and Sumaira
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Hafiz Muhammad Abubakar Siddique: Department of Business and Commerce, GIFT University, Gujranwala, Pakistan
Areesha Aziz: Department of Business and Commerce, GIFT University, Gujranwala, Pakistan
Naima Shehzadi: Department of Economics and Quantitative Methods, University of Management and Technology, Lahore, Pakistan
Sumaira: Department of Business and Commerce, GIFT University, Gujranwala, Pakistan

Journal of Policy Research (JPR), 2022, vol. 8, issue 4, 335-343

Abstract: This study aims to investigate the relationship between financial development (FD), exports, and industrial pollution by applying OLS, fixed effects (FE), random effects (RE), and GMM models for 36 upper-middle-income countries (UMICs) and 38 lower-middle-income countries (LMICs) from 1990 to 2019. The findings of the OLS indicate that financial development (FD), exports, and other factors including energy use, capital, and urban population significantly increase industrial pollution in UMICs and LMICs. The empirics of FE, RE, and GMM models also confirmed that exports, FD, and energy use have harmful effects on the environment. The study suggests that financial development should be directed toward projects and sources of energy that are favorable to the environment.

Keywords: Industrial Pollution; Exports; Financial development; UMICs; LMICs (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:rfh:jprjor:v:8:y:2022:i:4:p:335-343

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