Banking sector development and environmental degradation in the Economic Community of West African States: do technology effects matter?

Kwadwo Boateng Prempeh (), Samuel Yeboah, Felix Kwabena Danso () and Joseph Magnus Frimpong ()
Additional contact information
Kwadwo Boateng Prempeh: Sunyani Technical University
Felix Kwabena Danso: Sunyani Technical University
Joseph Magnus Frimpong: Kwame Nkrumah University of Science and Technology

Future Business Journal, 2023, vol. 9, issue 1, 1-12

Abstract: Abstract This paper contributes to the discussion on environmental degradation by exploring the connection between banking sector development and environmental degradation in the ECOWAS. In addition, we investigate the direction of causation between environmental degradation and its drivers and the technological effect of banking sector development on environmental degradation. We rely on a balanced panel dataset of 11 ECOWAS nations from 1990 to 2019. We present the following conclusions using the AMG estimator and the Driscoll–Kraay panel regression model. First, banking sector development reduces environmental degradation. Second, banking sector development has a deleterious technological effect on environmental quality. Thirdly, population and affluence were found to significantly promote environmental degradation, while the impact of technology was inconclusive. We further demonstrate a unidirectional causation association between the development of the banking sector and environmental degradation using the Dumitrescu and Hurlin causality analysis. Based on the study conclusions, numerous policy ramifications have been suggested for the ECOWAS nations to mitigate environmental degradation.

Keywords: Banking sector development; Environmental degradation; ECOWAS; STIRPAT model (search for similar items in EconPapers)
Date: 2023
References: Add references at CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1186/s43093-023-00286-1 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:futbus:v:9:y:2023:i:1:d:10.1186_s43093-023-00286-1

Ordering information: This journal article can be ordered from
https://fbj.springeropen.com/

DOI: 10.1186/s43093-023-00286-1

Access Statistics for this article

Future Business Journal is currently edited by Soad Kamel Rizk and Hayam Wahba

More articles in Future Business Journal from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().