Examining the bidirectional nexus between financial development and green growth: International evidence through the roles of human capital and education expenditure

Ngo, Thanh; Trinh, Hai Hong; Haouas, Ilham; Ullah, Subhan

Abstract

In the context of the 2030 Agenda for Sustainable Development by the United Nations, the functionality of financial development is undeniable in the wider economy toward Sustainable Development Goals (SDGs). Using novel panel data of 36 countries over the last decades, the study sheds light on the bi-directional nexus between financial development and green growth where human capital and education expenditure present their central roles in sustainable development. The study provides critical findings to the existing literature on climate change, environment, and sustainability. Following the empirical findings, we provide important insights to regulators, policy makers, and organizations in investigating the substantial contributions of financial development including financial markets and financial institutions where their accessibility, depth, and efficiency need a thorough consideration toward SDGs and mitigating climate change impacts worldwide. Apart from using the multidimensional proxies, the empirical findings are validated by a set of econometric approaches.

Citation

Ngo, T., Trinh, H. H., Haouas, I., & Ullah, S. (2022). Examining the bidirectional nexus between financial development and green growth: International evidence through the roles of human capital and education expenditure. Resources Policy, 79, Article 102964. https://doi.org/10.1016/j.resourpol.2022.102964

• Journal Article Type: Article
• Acceptance Date: Aug 17, 2022
• Online Publication Date: Sep 5, 2022
• Publication Date: Dec 1, 2022
• Deposit Date: Sep 7, 2022
• Publicly Available Date: Mar 6, 2024
• Journal: Resources Policy
• Print ISSN: 0301-4207
• Electronic ISSN: 1873-7641
• Publisher: Elsevier BV
• Peer Reviewed: Peer Reviewed
• Volume: 79
• Article Number: 102964
• DOI: https://doi.org/10.1016/j.resourpol.2022.102964
• Keywords: Law; Management, Monitoring, Policy and Law; Economics and Econometrics; Sociology and Political Science
• Public URL: https://nottingham-repository.worktribe.com/output/10913020
• Publisher URL: https://www.sciencedirect.com/science/article/pii/S030142072200407X?via%3Dihub