Financial Institutional and Market Deepening, and Environmental Quality Nexus: A Case Study in G-11 Economies Using CS-ARDL
Abstract
:1. Introduction
2. Theoretical Framework and Literature Review
3. Datasets, Method, and Models
3.1. Econometric Methodology
3.2. Model Building
3.3. Datasets Sources and Descriptive Statistics
4. Results and Discussion
4.1. Cross-Sectional Dependence and Heterogeneity Test Results
4.2. Unit Root Test and Co-Integration Test Results
4.3. CS-ARDL
4.4. Wavelet Coherence
5. Conclusions
Policy Recommendations
Author Contributions
Funding
Institutional Review Board Statement
Informed Consent Statement
Data Availability Statement
Conflicts of Interest
References
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Parameters | Abbreviation | Measurement | Source |
---|---|---|---|
Carbon Dioxide emissions | CO2e | Kilo tons | World Bank |
Population | POP | Total population | World Bank |
Gross Domestic Products | GDP | Per capita (constant 2015 USD) | World Bank |
Foreign Direct Investment | FID | Percentage of GDP | World Bank |
Financial Deepening | FD | Index representing financial market growth | IMF |
Financial Institutional Deepening | FID | Financial Institutional Access, depth and efficiency | IMF |
Financial Market Deepening | FMD | Financial Market Access, depth and efficiency | IMF |
Parameters | Mean | Minimum | Maximum | SD | Skewness | Kurtosis |
---|---|---|---|---|---|---|
CO2e | 69,817.14 | 2380 | 583,110 | 136,385.24 | 2.31 | 4.15 |
FDI | 3.64 | 0.04 | 23.53 | 3.79 | 2.07 | 5.60 |
FD | 0.23 | 0.07 | 0.58 | 0.13 | 0.98 | −0.05 |
FMD | 0.16 | 0.003 | 0.67 | 0.19 | 1.09 | −0.22 |
FID | 0.31 | 0.15 | 0.53 | 0.09 | 0.23 | −0.96 |
GDP | 1.17 × 1011 | 4.69 × 109 | 1.05 × 1012 | 2.22 × 1011 | 2.50 | 5.60 |
POP | 4.38 × 107 | 3.57 × 106 | 2.71 × 108 | 8.23 × 107 | 1.86 | 1.64 |
Parameter | Test Statistics (p-Value) |
---|---|
CO2e | 40.583 *** (0.00) |
FDI | 10.413 *** (0.00) |
FD | 39.630 *** (0.00) |
FMD | 38.698 *** (0.00) |
FID | 39.883 *** (0.00) |
GDP | 40.619 *** (0.00) |
POP | 40.618 *** (0.00) |
Statistics | Test Value (p-Value) |
---|---|
Delta-tilde | 3.427 *** (0.00) |
Delta-tilde Adjusted | 4.160 *** (0.00) |
Dependent Variable: CO2e | ||
---|---|---|
Value | p-Value | |
Gt | −2.347 | 0.954 |
Ga | −5.101 ** | 0.040 |
Pt | −5.884 | 0.993 |
Pa | −7.111 * | 0.089 |
Variables | CIPS Test | CADF Test | ||
---|---|---|---|---|
At Level | First Difference | At Level | First Difference | |
CO2e | −2.09 | −5.39 *** | −2.03 | −3.57 *** |
FDI | −3.16 | −6.03 *** | −2.52 | −4.85 *** |
FD | −2.26 | −5.50 *** | −2.07 | −4.08 *** |
GDP | −2.40 | −4.09 *** | −2.87 | −3.73 *** |
FMD | −2.56 | −5.28 *** | −2.44 | −4.17 *** |
FID | −2.63 | −5.29 *** | −2.46 | −3.81 *** |
POP | −1.80 | −3.29 *** | −2.88 | −3.76 *** |
Dependent Parameter: CO2e | ||||||
---|---|---|---|---|---|---|
Parameter | Short Run | Long Run | ||||
Coefficient | Standard Error | Significance | Coefficient | Standard Error | Significance | |
ΔlnCO2e | −0.7951 *** | 0.0779 | 0.00 | −1.7951 *** | 0.0779 | 0.00 |
ΔlnFDI | 0.0140 * | 0.0103 | 0.07 | 0.0090 * | 0.0069 | 0.09 |
ΔlnFD | 0.8959 *** | 0.7010 | 0.00 | 0.5269 ** | 0.3529 | 0.03 |
ΔlnFMD | −0.0549 * | 0.1327 | 0.07 | −0.0393 * | 0.0701 | 0.07 |
ΔlnFID | −0.7626 * | 0.5451 | 0.06 | −0.4458 *** | 0.2747 | 0.00 |
ΔlnGDP | 1.1230 *** | 0.1919 | 0.00 | 0.6264 *** | 0.1045 | 0.00 |
ΔlnPOP | 1.4735 *** | 0.9041 | 0.00 | 0.9012 ** | 0.5649 | 0.01 |
Variable | DCCEMG | ||
---|---|---|---|
Coefficients | Standard Error | Significance | |
FDI | 0.0102 ** | 0.0042 | 0.015 |
FD | 0.4199 * | 0.3985 | 0.092 |
FMD | −0.0099 ** | 0.0923 | 0.014 |
FID | −0.3421 ** | 0.2827 | 0.026 |
GDP | 0.9054 *** | 0.2247 | 0.000 |
POP | 2.5265 * | 1.4022 | 0.072 |
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Mehmood, U.; Tariq, S.; Haq, Z.u.; Agyekum, E.B.; Uhunamure, S.E.; Shale, K.; Nawaz, H.; Ali, S.; Hameed, A. Financial Institutional and Market Deepening, and Environmental Quality Nexus: A Case Study in G-11 Economies Using CS-ARDL. Int. J. Environ. Res. Public Health 2022, 19, 11984. https://doi.org/10.3390/ijerph191911984
Mehmood U, Tariq S, Haq Zu, Agyekum EB, Uhunamure SE, Shale K, Nawaz H, Ali S, Hameed A. Financial Institutional and Market Deepening, and Environmental Quality Nexus: A Case Study in G-11 Economies Using CS-ARDL. International Journal of Environmental Research and Public Health. 2022; 19(19):11984. https://doi.org/10.3390/ijerph191911984
Chicago/Turabian StyleMehmood, Usman, Salman Tariq, Zia ul Haq, Ephraim Bonah Agyekum, Solomon Eghosa Uhunamure, Karabo Shale, Hasan Nawaz, Shafqat Ali, and Ammar Hameed. 2022. "Financial Institutional and Market Deepening, and Environmental Quality Nexus: A Case Study in G-11 Economies Using CS-ARDL" International Journal of Environmental Research and Public Health 19, no. 19: 11984. https://doi.org/10.3390/ijerph191911984