IDEAS home Printed from https://ideas.repec.org/a/ids/ijmnec/v4y2017i1p67-94.html
   My bibliography  Save this article

The link among economic growth, CO 2 emissions, financial development, and trade openness nexus

Author

Listed:
  • Lamia Jamel
  • Samir Maktouf

Abstract

In this paper, we empirically investigate the causal nexus between economic growth (GDP), CO2 emissions (environmental degradation), financial development and trade openness by using the ordinary least squares technique for a yearly panel data of 40 European economies, during the period of study from 1985 to 2014. To examine this causal link, we utilise the Cobb-Douglas production function. The empirical findings point to a bidirectional Granger causal linkage among GDP and pollution, GDP and financial sector development, GDP and trade openness, financial sector development and trade openness and trade openness and pollution in the case of European economies. From the causal link between GDP and environmental pollutants, we validate the existence of the environmental Kuznets curve hypothesis. Also, we confirm the feedback suggestion of the bidirectional causality among trade openness and financial sector development. Besides, we find the neutrality hypothesis linking carbon emissions and financial sector development inflows. Finally, we find the presence of the bidirectional nexus between GDP and financial sector development and amongst GDP and trade openness in the European economies.

Suggested Citation

  • Lamia Jamel & Samir Maktouf, 2017. "The link among economic growth, CO 2 emissions, financial development, and trade openness nexus," International Journal of Management and Network Economics, Inderscience Enterprises Ltd, vol. 4(1), pages 67-94.
  • Handle: RePEc:ids:ijmnec:v:4:y:2017:i:1:p:67-94
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=87584
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:ijmnec:v:4:y:2017:i:1:p:67-94. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sarah Parker). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID==259 .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.