On the sustainable trade development: Do Financial inclusion and eco‐innovation matter? Evidence from method of moments quantile regression

Qiang Ma, Xue Han, Ramez Badeeb and Zeeshan Khan

Sustainable Development, 2022, vol. 30, issue 5, 1044-1055

Abstract: The role of financial inclusion along with environment related technological innovation has been ignored by previous studies, especially, in terms of trade‐adjusted carbon emissions. Unlike previous studies, this study aims to test the role of financial inclusion and eco‐innovation on trade‐adjusted carbon emissions or consumption‐based carbon emissions for a group of seven economies over the period 2004–2019. Further, this study also tests the role of exports, imports and gross domestic product. We develop an index using principal component analysis to measure financial inclusion. The study utilizes the novel method of moment quantile regression to obtain the results. The results indicate that eco‐innovation reduces consumption‐based carbon emissions at 25th, 50th, 75th, and 90th quantiles, respectively. Moreover, financial inclusion and exports also reduce emissions at 25th, 50th, 75th, and 90th quantiles. In contrast, gross domestic product and imports cause trade‐adjusted emissions to increase. Moreover, a bidirectional link is established between all variables except for financial inclusion. Finally, this study provides relevant policy implications for trade, eco‐innovation, and financial inclusion in the group of seven economies for sustainable trade development. This paper further provide relevant environmental policy implications.

Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://doi.org/10.1002/sd.2298

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:wly:sustdv:v:30:y:2022:i:5:p:1044-1055

Access Statistics for this article

Sustainable Development is currently edited by Richard Welford

More articles in Sustainable Development from John Wiley & Sons, Ltd.
Bibliographic data for series maintained by Wiley Content Delivery ().