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The impact of financial inclusion, Fintech, HDI, and green finance on environmental sustainability in E-7 countries

Author

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  • Ghouse, Ghulam
  • Bhatti, Muhammad Ishaq
  • Nasrullah, Muhammad Junaid

Abstract

This paper explores the complex relationships between financial inclusion, fintech adoption, the Human Development Index (HDI), and green finance in promoting environmental sustainability within E-7 economies. Using structural equation model, our analysis reveals a significant direct impact of HDI on environmental sustainability, with green innovation serving as a crucial mediator. These findings highlight the essential role of green innovation in enhancing sustainability in emerging economies, offering new insights into the synergy between financial practices, human development, and environmental conservation.

Suggested Citation

  • Ghouse, Ghulam & Bhatti, Muhammad Ishaq & Nasrullah, Muhammad Junaid, 2025. "The impact of financial inclusion, Fintech, HDI, and green finance on environmental sustainability in E-7 countries," Finance Research Letters, Elsevier, vol. 72(C).
    • Handle: RePEc:eee:finlet:v:72:y:2025:i:c:s1544612324016465
    DOI: 10.1016/j.frl.2024.106617
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    More about this item

    Keywords

    Financial inclusion; Fintech; Financial sustainability; Green innovation; Structural equation model; Environment sustainability;
    All these keywords.

    JEL classification:

    • G2 - Financial Economics - - Financial Institutions and Services
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F64 - International Economics - - Economic Impacts of Globalization - - - Environment
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • C36 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Instrumental Variables (IV) Estimation

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