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The Role of ICT and Financial Development on CO2 Emissions and Economic Growth

Author

Listed:
  • Ibrahim D. Raheem

    (EXCAS, Liège, Belgium)

  • Aviral K. Tiwari

    (Rajagiri Business School, Kochi, India)

  • Daniel Balsalobre-lorente

    (Ciudad Real, Spain)

Abstract

This study explores the role of the information and communication Technology (ICT) and financial development (FD) on both carbon emissions and economic growth for the G7 countries for the period 1990-2014. Using PMG, we found that ICT has a long run positive effect on emissions, while FD is a weak determinant. The interactive term between the ICT and FD produces negative coefficients. Also, both variables are found to impact negatively on economic growth. However, their interactions show they have mixed effects on economic growth (i.e., positive in the short-run and negative in the long-run). Policy implications were designed based on these results.

Suggested Citation

  • Ibrahim D. Raheem & Aviral K. Tiwari & Daniel Balsalobre-lorente, 2019. "The Role of ICT and Financial Development on CO2 Emissions and Economic Growth," Working Papers of the African Governance and Development Institute. 19/058, African Governance and Development Institute..
    • Handle: RePEc:agd:wpaper:19/058
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    More about this item

    Keywords

    ICT; Financial development; Carbon emissions; Economic growth and G7 countries;
    All these keywords.

    JEL classification:

    • E23 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Production
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F30 - International Economics - - International Finance - - - General
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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