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Effect of green finance and institutional quality on economic growth: an evidence from novel MMQR approach

Author

Listed:
  • Mumtaz Ali

    (Near East University
    INTI International University
    University of Sindh)

  • Peter Oluwasegun Igunnu

    (Near East University)

  • Mehdi Seraj

    (Near East University)

  • Ali Raza

    (Sinop University)

Abstract

Green finance plays a vital role in mitigating the adverse impacts of climate change and contributes to long-term economic resilience by integrating economic growth objectives with environmental protection. Therefore, this study investigates the effects of green finance, rule of law, carbon emissions, and government effectiveness on the economic growth of 169 countries across the seven continents for the time period spanning from 2002 to 2023. This study employs the Method of Moment Quantile Regression (MMQR) to assess the effects across the different quantiles. The findings show that green finance has a negative effect on the economic growth. However, the rule of law, carbon emissions, and government effectiveness has positively contributed to economic growth. Moreover, the effects of green finance, rule of law, carbon emissions, and government effectiveness vary across the continents. The findings of this research provide valuable insights to support the continents in development and restricting of their economic and policy initiatives.

Suggested Citation

  • Mumtaz Ali & Peter Oluwasegun Igunnu & Mehdi Seraj & Ali Raza, 2025. "Effect of green finance and institutional quality on economic growth: an evidence from novel MMQR approach," SN Business & Economics, Springer, vol. 5(10), pages 1-26, October.
    • Handle: RePEc:spr:snbeco:v:5:y:2025:i:10:d:10.1007_s43546-025-00911-x
    DOI: 10.1007/s43546-025-00911-x
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