This study analyzes the role of financial development(FD)on the impact of technologi-cal innovation(TI)on six environmental quality indicators for the 25 economies that are part of the Organization for Economic Cooper...This study analyzes the role of financial development(FD)on the impact of technologi-cal innovation(TI)on six environmental quality indicators for the 25 economies that are part of the Organization for Economic Cooperation and Development for the period from 2000 to 2019.We use a two-step dynamic generalized method of moments approach to understand this relationship.The results show that FD augments the posi-tive effects of TI on four of the six environmental indicators,namely ecological foot-print,adjusted net savings,pressure on nature,and environmental performance.However,no significant effects on environmental sustainability and environmental vulnerability indices were found.When considering all of the environmental quality indicators,TI appears to enhance environmental quality.We find evidence to support the existence of the environmental Kuznets curve in the context of each environmen-tal indicator and economic growth.Moreover,FD and energy consumption appear to accelerate environmental degradation.Based on these results,FD should be viewed as an important parameter in designing policies for innovation to achieve the goal of net-zero carbon emissions.Highlights.Technological innovation and environmental quality nexus is studied.The moderating role of financial development is analyzed.Six different environmental quality indicators are used for OECD countries.Financial development intensifies the environmental benefits of innovation.•The EKC hypothesis is confirmed for all six environmental indicators.展开更多
This study examined the relationship between financial innovation and economic growth in Bangladesh,India,Pakistan,and Sri Lanka for the period Q11975 to Q42016.The autoregressive distributed lag(ARDL)bounds test was ...This study examined the relationship between financial innovation and economic growth in Bangladesh,India,Pakistan,and Sri Lanka for the period Q11975 to Q42016.The autoregressive distributed lag(ARDL)bounds test was used to gauge long-run relationships,and the nonlinear ARDL(NARDL)test was used to explore asymmetry between financial innovation and economic growth in the sample of Asian countries.The findings from the bounds tests revealed long-run cointegration between financial innovation and economic growth in the sample countries.Furthermore,NARDL confirmed that positive changes in financial innovation linked positively with economic growth and vice versa in the long run.In the short run,however,the study found mixed behaviors in the case of positive and negative changes in financial innovation.To investigate directional causality,the Granger causality test under an error correction model was employed.The Granger causality results supported the feedback hypothesis in both the long run and short run.Thus,financial innovation boosts economic growth in the long run by stimulating financial service expansion,financial efficiency,capital accumulation,and efficient financial intermediation,which are essential for sustainable economic growth.展开更多
Background:This study provides evidence for the financial innovation in the financial system that resulted in the economic growth of Bangladesh from 1980-2016.Methods:To capture the influence of financial innovation o...Background:This study provides evidence for the financial innovation in the financial system that resulted in the economic growth of Bangladesh from 1980-2016.Methods:To capture the influence of financial innovation on economic growth,we estimated the long-run cointegration by applying Autoregressive Distributed Lag(ARDL)bound testing and Granger causality-based Error Correction Model(ECM)to capture the directional association.Results:The Test of Cointegration satisfied the existence of a long-run association between economic growth and the financial innovation proxies,which were the Domestic Credit to the Private Sector(DCB)as a percentage of the Gross Domestic Product and the Broad-to-Narrow Money(M2/M1)as a percentage of the Gross Domestic Product.Our results showed that in the long run,credit circulation to the private sector and monetary management play important roles in economic growth.We also found that the coefficients of the financial innovation proxy variables were positive and statistically significant both in the short run and long run.We also ran Granger causality tests to investigate the directional effect.This study confirmed the feedback causality between the economic growth and 2 proxies of financial innovation in the short and long run.The gross capital formation and trade openness contribute significantly to explaining the economic growth in Bangladesh.Conclusion:The government of Bangladesh should encourage financial innovation in the financial system,especially at financial institutions,so that access to financial services can easily provide for equitable development.The government should also encourage financial innovation in the capital market,which will assist in raising longterm capital for investment and expedite overall economic growth.展开更多
The study investigated the relationship among remittances,financial development and economic growth in a panel of 20 sub-Saharan African countries over the period of 2000 and 2015.The study used both Pooled Mean Group...The study investigated the relationship among remittances,financial development and economic growth in a panel of 20 sub-Saharan African countries over the period of 2000 and 2015.The study used both Pooled Mean Group and Mean Group/ARDL estimations with panel unit root and cointegration tests.After establishing cointegration,remittances and financial development were found to have positive effects on economic growth both in the short and the long run.The interactive term showed that financial development acted as a substitute in the remittances-growth relationship.Finally,unidirectional causal relationships were found to exist from GDP to remittances and from financial development to GDP.However,no causality existed between remittances and financial development in the SSA countries.展开更多
There are many defects in researches on the relationship of the regional financial development (FD) and economic growth of China, such as simply assuming the causality direction, not highlighting financial institution...There are many defects in researches on the relationship of the regional financial development (FD) and economic growth of China, such as simply assuming the causality direction, not highlighting financial institution, using incomplete financial indicator, etc. This article, taking Suzhou City of Jiangsu Province, China as a case, builds a simple model to study the level of FD from three aspects of financial scale, structure and institution. Three original indicators of PRIVY (private investment/aggregate investment), DEPTH (aggregate loan/GDP) and FDIVG (FDI/GDP) are used to construct the FD economic indicator through Principal Component Analysis approach. Then we use Granger method to analyze the relationship between the FD and the economic growth of Suzhou. Empirical test results show that the FD of Suzhou is the Granger reason of economic growth, while economic growth is not the reason for FD, because the relationship between the FD and the economic growth of Suzhou is just in the ″supply-leading″ period. In terms of Suzhou experiences, the local government should strengthen the protection of private investment, improve the institutional environment, and establish the reasonable financial structure. So we can concluded that FD could play a great role in promoting economic growth at the economy takeoff stage.展开更多
For decades,African economies have embarked on financial sector reforms.However,the empirical implications of these reforms have been divergent.This paper investigates the impact of financial development on Economic g...For decades,African economies have embarked on financial sector reforms.However,the empirical implications of these reforms have been divergent.This paper investigates the impact of financial development on Economic growth using time series data in Cameroon.This investigation was carried out using three common indicators of financial development(broad money,deposit/GDP and domestic credit to private sector).Using the Auto Regressive Distributive Lag(ARDL)technique of estimation,it was discovered that there exist a short-run positive relationship between monetary mass(M2),government expenditure and economic growth,a short run negative relationship between bank deposits,private investment and economic growth equally exists.However in the long run,all indicators of financial development show a positive and significant impact on economic growth.This paper thus confirms the existence of a positive and long-term impact of all the indicators of financial development on economic growth through bound test.It is therefore proposed that the financial reforms in Cameroon should be pushed forward in order to boost the development of the financial sector thus an increase in its role on economic growth.展开更多
The extant literature has produced mixed evidence on the relationship between finan-cial development and ecological sustainability.This work addresses this conundrum by investigating financial development’s direct an...The extant literature has produced mixed evidence on the relationship between finan-cial development and ecological sustainability.This work addresses this conundrum by investigating financial development’s direct and indirect consequences on ecologi-cal quality utilizing the environmental Kuznets curve(EKC)methodological approach.Our empirical analysis is based on the novel dynamic autoregressive distributed lag simulations approach for South Africa between 1960 and 2020.The results,which used five distinct financial development measures,demonstrate that financial develop-ment boosts ecological integrity and environmental sustainability over the long and short terms.In the instance of South Africa,we additionally confirm the validity of the EKC theory.More importantly,the outcomes of the indirect channels demonstrate that financial development increases energy usage’s role in causing pollution while attenuating the detrimental impacts of economic growth,trade openness,and foreign direct investment on ecological quality.Moreover,the presence of an inadequate financial system is a requirement for the basis of the pollution haven hypothesis(PHH),which we examine using trade openness and foreign direct investment variables.PHH for both of these variables disappears when financial development crosses specified thresholds.Finally,industrial value addition destroys ecological quality while tech-nological innovation enhances it.This research provides some crucial policy recom-mendations and fresh perspectives for South Africa as it develops national initiatives to support ecological sustainability and reach its net zero emissions goal.展开更多
The recent accelerated growth rates or efforts to emulate countries that have achieved a rapid pace of economic growth are widely acclaimed as means to uplift millions from poverty. In so doing, however, this rapid ec...The recent accelerated growth rates or efforts to emulate countries that have achieved a rapid pace of economic growth are widely acclaimed as means to uplift millions from poverty. In so doing, however, this rapid economic growth is most likely to coincide with unsustainable levels of consumption, place excessive pressure on life support systems and terrestrial sinks and foreshorten options for the future. Rather than pursuing the "Environmental Kuznets Curve"(EKC) hypothesis that higher income will bring with it the means to reduce the impacts of greater consumption, ecological economists assert that buying our way out of future scarcity with fast growth is indeed contradictory with sustainabil- ity. To better understand these contradictions and explore potential institutional innovations that may enable developing nations to better confront them (in effect,"tunneling under"the EKC), this article refers to recent experience in the BRICS countries (Brazil, Russia, India, China and South Africa). Beginning with a brief comparative summary of major development and environmental indicators, pressures on resources and society in each of the BRICS are discussed, followed by identification of institutional and policy frameworks each country has evolved to confront the challenges of growth and sustainability. The article closes with general conclusions for further research and information sharing among developing nations.展开更多
Innovation contributes to the long-term economic growth.From the perspective of externality by innovation,this paper disentangles the spillover effect based on the regions’abundance of innovation resource and separat...Innovation contributes to the long-term economic growth.From the perspective of externality by innovation,this paper disentangles the spillover effect based on the regions’abundance of innovation resource and separately identifies the“leader effect”and“peer effect”of innovation spillover and discusses their economic consequences.Empirical results demonstrate a negative spillover effect from innovation leaders on the economic growth and a positive spillover effect from innovation peers.Robustness checks also support main findings.This study has implication both in the endogenous economic growth theory and industry innovation practice.展开更多
Shandong’s TFP growth is higher than Chinese average,but the growth rate has slowed in recent years,appearing the phenomenon that the growth momentum of Shandong’s TFP is insufficient.Using DEA-Malmquist Index to me...Shandong’s TFP growth is higher than Chinese average,but the growth rate has slowed in recent years,appearing the phenomenon that the growth momentum of Shandong’s TFP is insufficient.Using DEA-Malmquist Index to measure Shandong’s TFP growth rate,empirical research from the perspective of financial development finds that financial scale,efficiency of financial institutions,fiscal intervention,and scale of foreign capital utilization have significant nonlinear effects on the growth of TFP.Furtherly,through threshold analysis,the efficiency of financial institutions has a significant threshold effect on TFP growth.Financial scale and fiscal intervention are the main core variables that affect the growth of TFP under the threshold effect,and they have the same effect direction on TFP before and after the threshold value.However,the effect intensity of these two core variables on TFP is different.展开更多
The outbreak of the SARS-CoV-2 virus in early 2020,known as COVID-19,spread to more than 200 countries and negatively affected the global economic output.Financial activities were primarily depressed,and investors wer...The outbreak of the SARS-CoV-2 virus in early 2020,known as COVID-19,spread to more than 200 countries and negatively affected the global economic output.Financial activities were primarily depressed,and investors were reluctant to start new financial investments while ongoing projects further declined due to the global lockdown to curb the disease.This study analyzes the money supply reaction to the COVID-19 pandemic using a cross-sectional panel of 115 countries.The study used robust least square regression and innovation accounting techniques to get sound parameter estimates.The results show that COVID-19 infected cases are the main contributing factor that obstructs financial activities and decrease money supply.In contrast,an increasing number of recovered cases and COVID-19 testing capabilities gave investors confidence to increase stock trade across countries.The overall forecast trend shows that COVID-19 infected cases and recovered cases followed the U-shaped trend,while COVID-19 critical cases and reported deaths showed a decreasing trend.Finally,the money supply and testing capacity show a positive trend over a period.The study concludes that financial development can be expanded by increasing the testing capacity and functional labs to identify suspected coronavirus cases globally.展开更多
The strong economic growth in China is difficult to reconcile with its inefficient financial system. The puzzle of China's financial development and growth can be explained through a dynamic criterion of adaptive eff...The strong economic growth in China is difficult to reconcile with its inefficient financial system. The puzzle of China's financial development and growth can be explained through a dynamic criterion of adaptive efficiency, rather than through allocative efficiency. Using the framework of an autoregressive distributed lag model, the present paper tests the hypothesis that the GDP growth rate is dependent on financial development along with other variables in China and Pakistan. The hypothesis cannot be rejected in both cases. However, the results show that economic growth has a negative relationship with credit to the private sector in China. We conclude that financial development is a source of China's high growth rate and that the banking system is still under an evolutionary process, involving the pursuit of social objectives instead of the sole objective of profit maximization. Our results provide some implications for other developing countries like Pakistan.展开更多
基金This research paper did not receive any financial aid from any source.
文摘This study analyzes the role of financial development(FD)on the impact of technologi-cal innovation(TI)on six environmental quality indicators for the 25 economies that are part of the Organization for Economic Cooperation and Development for the period from 2000 to 2019.We use a two-step dynamic generalized method of moments approach to understand this relationship.The results show that FD augments the posi-tive effects of TI on four of the six environmental indicators,namely ecological foot-print,adjusted net savings,pressure on nature,and environmental performance.However,no significant effects on environmental sustainability and environmental vulnerability indices were found.When considering all of the environmental quality indicators,TI appears to enhance environmental quality.We find evidence to support the existence of the environmental Kuznets curve in the context of each environmen-tal indicator and economic growth.Moreover,FD and energy consumption appear to accelerate environmental degradation.Based on these results,FD should be viewed as an important parameter in designing policies for innovation to achieve the goal of net-zero carbon emissions.Highlights.Technological innovation and environmental quality nexus is studied.The moderating role of financial development is analyzed.Six different environmental quality indicators are used for OECD countries.Financial development intensifies the environmental benefits of innovation.•The EKC hypothesis is confirmed for all six environmental indicators.
基金We do not receive any financial assistance from any agency.All the cost associated with preparing article bear by authors solely.
文摘This study examined the relationship between financial innovation and economic growth in Bangladesh,India,Pakistan,and Sri Lanka for the period Q11975 to Q42016.The autoregressive distributed lag(ARDL)bounds test was used to gauge long-run relationships,and the nonlinear ARDL(NARDL)test was used to explore asymmetry between financial innovation and economic growth in the sample of Asian countries.The findings from the bounds tests revealed long-run cointegration between financial innovation and economic growth in the sample countries.Furthermore,NARDL confirmed that positive changes in financial innovation linked positively with economic growth and vice versa in the long run.In the short run,however,the study found mixed behaviors in the case of positive and negative changes in financial innovation.To investigate directional causality,the Granger causality test under an error correction model was employed.The Granger causality results supported the feedback hypothesis in both the long run and short run.Thus,financial innovation boosts economic growth in the long run by stimulating financial service expansion,financial efficiency,capital accumulation,and efficient financial intermediation,which are essential for sustainable economic growth.
文摘Background:This study provides evidence for the financial innovation in the financial system that resulted in the economic growth of Bangladesh from 1980-2016.Methods:To capture the influence of financial innovation on economic growth,we estimated the long-run cointegration by applying Autoregressive Distributed Lag(ARDL)bound testing and Granger causality-based Error Correction Model(ECM)to capture the directional association.Results:The Test of Cointegration satisfied the existence of a long-run association between economic growth and the financial innovation proxies,which were the Domestic Credit to the Private Sector(DCB)as a percentage of the Gross Domestic Product and the Broad-to-Narrow Money(M2/M1)as a percentage of the Gross Domestic Product.Our results showed that in the long run,credit circulation to the private sector and monetary management play important roles in economic growth.We also found that the coefficients of the financial innovation proxy variables were positive and statistically significant both in the short run and long run.We also ran Granger causality tests to investigate the directional effect.This study confirmed the feedback causality between the economic growth and 2 proxies of financial innovation in the short and long run.The gross capital formation and trade openness contribute significantly to explaining the economic growth in Bangladesh.Conclusion:The government of Bangladesh should encourage financial innovation in the financial system,especially at financial institutions,so that access to financial services can easily provide for equitable development.The government should also encourage financial innovation in the capital market,which will assist in raising longterm capital for investment and expedite overall economic growth.
文摘The study investigated the relationship among remittances,financial development and economic growth in a panel of 20 sub-Saharan African countries over the period of 2000 and 2015.The study used both Pooled Mean Group and Mean Group/ARDL estimations with panel unit root and cointegration tests.After establishing cointegration,remittances and financial development were found to have positive effects on economic growth both in the short and the long run.The interactive term showed that financial development acted as a substitute in the remittances-growth relationship.Finally,unidirectional causal relationships were found to exist from GDP to remittances and from financial development to GDP.However,no causality existed between remittances and financial development in the SSA countries.
基金Under the auspices of China Postdoctoral Science Foundation (No. 20070420271, 20018801012)
文摘There are many defects in researches on the relationship of the regional financial development (FD) and economic growth of China, such as simply assuming the causality direction, not highlighting financial institution, using incomplete financial indicator, etc. This article, taking Suzhou City of Jiangsu Province, China as a case, builds a simple model to study the level of FD from three aspects of financial scale, structure and institution. Three original indicators of PRIVY (private investment/aggregate investment), DEPTH (aggregate loan/GDP) and FDIVG (FDI/GDP) are used to construct the FD economic indicator through Principal Component Analysis approach. Then we use Granger method to analyze the relationship between the FD and the economic growth of Suzhou. Empirical test results show that the FD of Suzhou is the Granger reason of economic growth, while economic growth is not the reason for FD, because the relationship between the FD and the economic growth of Suzhou is just in the ″supply-leading″ period. In terms of Suzhou experiences, the local government should strengthen the protection of private investment, improve the institutional environment, and establish the reasonable financial structure. So we can concluded that FD could play a great role in promoting economic growth at the economy takeoff stage.
文摘For decades,African economies have embarked on financial sector reforms.However,the empirical implications of these reforms have been divergent.This paper investigates the impact of financial development on Economic growth using time series data in Cameroon.This investigation was carried out using three common indicators of financial development(broad money,deposit/GDP and domestic credit to private sector).Using the Auto Regressive Distributive Lag(ARDL)technique of estimation,it was discovered that there exist a short-run positive relationship between monetary mass(M2),government expenditure and economic growth,a short run negative relationship between bank deposits,private investment and economic growth equally exists.However in the long run,all indicators of financial development show a positive and significant impact on economic growth.This paper thus confirms the existence of a positive and long-term impact of all the indicators of financial development on economic growth through bound test.It is therefore proposed that the financial reforms in Cameroon should be pushed forward in order to boost the development of the financial sector thus an increase in its role on economic growth.
文摘The extant literature has produced mixed evidence on the relationship between finan-cial development and ecological sustainability.This work addresses this conundrum by investigating financial development’s direct and indirect consequences on ecologi-cal quality utilizing the environmental Kuznets curve(EKC)methodological approach.Our empirical analysis is based on the novel dynamic autoregressive distributed lag simulations approach for South Africa between 1960 and 2020.The results,which used five distinct financial development measures,demonstrate that financial develop-ment boosts ecological integrity and environmental sustainability over the long and short terms.In the instance of South Africa,we additionally confirm the validity of the EKC theory.More importantly,the outcomes of the indirect channels demonstrate that financial development increases energy usage’s role in causing pollution while attenuating the detrimental impacts of economic growth,trade openness,and foreign direct investment on ecological quality.Moreover,the presence of an inadequate financial system is a requirement for the basis of the pollution haven hypothesis(PHH),which we examine using trade openness and foreign direct investment variables.PHH for both of these variables disappears when financial development crosses specified thresholds.Finally,industrial value addition destroys ecological quality while tech-nological innovation enhances it.This research provides some crucial policy recom-mendations and fresh perspectives for South Africa as it develops national initiatives to support ecological sustainability and reach its net zero emissions goal.
文摘The recent accelerated growth rates or efforts to emulate countries that have achieved a rapid pace of economic growth are widely acclaimed as means to uplift millions from poverty. In so doing, however, this rapid economic growth is most likely to coincide with unsustainable levels of consumption, place excessive pressure on life support systems and terrestrial sinks and foreshorten options for the future. Rather than pursuing the "Environmental Kuznets Curve"(EKC) hypothesis that higher income will bring with it the means to reduce the impacts of greater consumption, ecological economists assert that buying our way out of future scarcity with fast growth is indeed contradictory with sustainabil- ity. To better understand these contradictions and explore potential institutional innovations that may enable developing nations to better confront them (in effect,"tunneling under"the EKC), this article refers to recent experience in the BRICS countries (Brazil, Russia, India, China and South Africa). Beginning with a brief comparative summary of major development and environmental indicators, pressures on resources and society in each of the BRICS are discussed, followed by identification of institutional and policy frameworks each country has evolved to confront the challenges of growth and sustainability. The article closes with general conclusions for further research and information sharing among developing nations.
文摘Innovation contributes to the long-term economic growth.From the perspective of externality by innovation,this paper disentangles the spillover effect based on the regions’abundance of innovation resource and separately identifies the“leader effect”and“peer effect”of innovation spillover and discusses their economic consequences.Empirical results demonstrate a negative spillover effect from innovation leaders on the economic growth and a positive spillover effect from innovation peers.Robustness checks also support main findings.This study has implication both in the endogenous economic growth theory and industry innovation practice.
基金This paper was supported by The National Social Science Fund of China-Research on the Quality Improvement Mechanism of Heterogeneous Enterprises’Export Products under the Global Value Chain Division of Labor System(Project No.:18BJL100)Shandong Province Social Science Planning Research Project-Research on Optimizing Operation Mechanism of Shandong Equity Investment Guidance Fund(Project No.:17CJRJ10).
文摘Shandong’s TFP growth is higher than Chinese average,but the growth rate has slowed in recent years,appearing the phenomenon that the growth momentum of Shandong’s TFP is insufficient.Using DEA-Malmquist Index to measure Shandong’s TFP growth rate,empirical research from the perspective of financial development finds that financial scale,efficiency of financial institutions,fiscal intervention,and scale of foreign capital utilization have significant nonlinear effects on the growth of TFP.Furtherly,through threshold analysis,the efficiency of financial institutions has a significant threshold effect on TFP growth.Financial scale and fiscal intervention are the main core variables that affect the growth of TFP under the threshold effect,and they have the same effect direction on TFP before and after the threshold value.However,the effect intensity of these two core variables on TFP is different.
基金Researchers Supporting Project number(RSP-2020/87),King Saud University,Riyadh,Saudi Arabia.
文摘The outbreak of the SARS-CoV-2 virus in early 2020,known as COVID-19,spread to more than 200 countries and negatively affected the global economic output.Financial activities were primarily depressed,and investors were reluctant to start new financial investments while ongoing projects further declined due to the global lockdown to curb the disease.This study analyzes the money supply reaction to the COVID-19 pandemic using a cross-sectional panel of 115 countries.The study used robust least square regression and innovation accounting techniques to get sound parameter estimates.The results show that COVID-19 infected cases are the main contributing factor that obstructs financial activities and decrease money supply.In contrast,an increasing number of recovered cases and COVID-19 testing capabilities gave investors confidence to increase stock trade across countries.The overall forecast trend shows that COVID-19 infected cases and recovered cases followed the U-shaped trend,while COVID-19 critical cases and reported deaths showed a decreasing trend.Finally,the money supply and testing capacity show a positive trend over a period.The study concludes that financial development can be expanded by increasing the testing capacity and functional labs to identify suspected coronavirus cases globally.
文摘The strong economic growth in China is difficult to reconcile with its inefficient financial system. The puzzle of China's financial development and growth can be explained through a dynamic criterion of adaptive efficiency, rather than through allocative efficiency. Using the framework of an autoregressive distributed lag model, the present paper tests the hypothesis that the GDP growth rate is dependent on financial development along with other variables in China and Pakistan. The hypothesis cannot be rejected in both cases. However, the results show that economic growth has a negative relationship with credit to the private sector in China. We conclude that financial development is a source of China's high growth rate and that the banking system is still under an evolutionary process, involving the pursuit of social objectives instead of the sole objective of profit maximization. Our results provide some implications for other developing countries like Pakistan.