Effects of financial development, FDI and good governance on environmental degradation in the Arab nation: Dose technological innovation matters?

Frontiers in Environmental Science

Environmental Science

Shuwen Ju¹  Md Qamruzzaman²  Sylvia Kor²  Anselme Andriamahery³ 

[1] School of Asian and African Studies, Shanghai International Studies University, Shanghai, China;School of Business and Economics, United International University, Dhaka, Bangladesh;School of Economics and Management, Hubei Polytechnic University, Huangshi, Hubei, China;

关键词: environmental degradation;    FDI – foreign direct investment;    governmental effectiveness;    financial development;    technological innovation;    CS-ARDL;    NARDL asymmetric;   

DOI  :  10.3389/fenvs.2023.1094976

 received in 2022-11-10, accepted in 2023-02-08,  发布年份 2023

来源: Frontiers

【 摘 要 】

The motivation of the study is to gauge the impact of financial development, FDI, Technological innovation, and good governance on environmental degradation in the Arab Nation for the period 1991–2019. Several techniques have implemented, including error correction-based cointegration, cross-sectional ARDL, Non-linear ARDL and Heterogeneous causality test for directional causality. The results of Slope of homogeneity, CSD and unit root test following CIPS and CADF, revealed that research variables are exposed with heterogeneity properties, cross-sectionally dependent, and all the variables become stationary after the first difference. The long-run cointegration between explained and explanatory variables established through error correction based cointegrating test. Referring to results derived from CS-ARDL, study exposed financial development has a detrimental effect on environmental sustainability, suggesting the intensification of CO2 emission and ecological instability. On the other hand, the role of FDI, GG, and TI exposed beneficiary in mitigating the environmental adversity. The asymmetric assessment revealed asymmetric association between explained and core explanatory variables which is valid in the long-run and short-run horizon. Finally, the casual association, study unveiled bidirectional causality between FDI, TI and ED [FDI←→ED; TI←→ED]. On the policy note, the study advocated that environmental improvement through financial channels should be efficiently monitored in the case of credit extension and incorporation with existing environmental policies.

【 授权许可】

Unknown   
Copyright © 2023 Ju, Andriamahery, Qamruzzaman and Kor.