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Financial development, economic growth, globalisation and environmental quality in BRICS economies: evidence from ARDL bounds test approach

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  • Vaishali S. Dhingra

    (Sardar Vallabhbhai National Institute of Technology (SVNIT))

Abstract

The current world is seeking balance between achieving economic and financial growth and shielding earth’s environment. The 13th goal (climate action) among 17 Sustainable Development Goals (SDGs) is an outcome of the same concern. The ample body of the literature tries to analyse the inter-linkages among financial development, economic growth, globalisation and greenhouse gas (GHG) emissions, but their results do not reach a consensus. The BRICS (Brazil, Russia, India, China and South Africa) nations have emerged as a dominant force in recent years, but their growth stories are tainted with the increased environmental issues. The present study tries to analyse the same nexus from 1991 to 2020 using Autoregressive Distributed Lag (ARDL) approach for BRICS nations. The empirical findings suggest strong long-run and short-run positive implications of financial development, and negative implications of economic growth and globalisation on GHG emissions in all four nations except China. The study is distinct as it extensively analyses the interdependence between GHG emissions and financial development using 9 different sub-indices.

Suggested Citation

  • Vaishali S. Dhingra, 2023. "Financial development, economic growth, globalisation and environmental quality in BRICS economies: evidence from ARDL bounds test approach," Economic Change and Restructuring, Springer, vol. 56(3), pages 1651-1682, June.
    • Handle: RePEc:kap:ecopln:v:56:y:2023:i:3:d:10.1007_s10644-022-09481-6
    DOI: 10.1007/s10644-022-09481-6
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    Cited by:

    1. Zhilei Pan & Shouwei Li, 2024. "Environmental emergencies and economic growth: evidence from China," Economic Change and Restructuring, Springer, vol. 57(1), pages 1-22, February.

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    More about this item

    Keywords

    Environmental quality; Financial development; Economic Growth; GHG emissions; BRICS economies; ARDL approach;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • C58 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Financial Econometrics
    • D53 - Microeconomics - - General Equilibrium and Disequilibrium - - - Financial Markets
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development
    • F64 - International Economics - - Economic Impacts of Globalization - - - Environment
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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