Environmental sustainability and financial development in Africa; does institutional quality play any role?
| Autor: | Godfred A. Bokpin, Charles Ackah, Anthony Q.Q. Aboagye, Matthew Ntow-Gyamfi |
|---|---|
| Jazyk: | angličtina |
| Rok vydání: | 2020 |
| Předmět: |
financial development
Natural resource economics lcsh:Human settlements. Communities lcsh:HT51-65 Development Financial development lcsh:HD72-88 lcsh:Economic growth development planning ekc Kuznets curve africa Sustainability Economics institutional quality environmental sustainability Environmental degradation Institutional quality |
| Zdroj: | Development Studies Research, Vol 7, Iss 1, Pp 93-118 (2020) |
| ISSN: | 2166-5095 |
| Popis: | The Environmental Kuznets Curve (EKC) having been used to explain the relationship between growth and environmental degradation has gained some attention in the finance literature in recent times. In this study, we re-conceptualize the EKC into a Financial Market Environmental Kuznets Curve (FMECK) that explains the relationship between financial development and sustainability, while introducing institutional quality as a moderator. The study posits that there is an Environmental Kuznets Curve for Africa and that the EKC holds for financial development and sustainability. Institutional Quality and Regulatory framework moderate the finance – sustainability nexus, which leads to the conceptualization of FMEKC. We find an inverted ‘U’ relationship between financial development and environmental degradation, which we explain using three arguments. We document that having a robust institutional framework in place could reduce the long-run adverse effects of financial development on the environment. |
| Databáze: | OpenAIRE |
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