Financial Inclusion, Governance, and Carbon Emissions in SAARC Countries
Author Information
Author(s): Mehmood Jafir, Jinghan Yang, Wang Jing, Ahmad Maqsood
Primary Institution: College of Economics and Management, Northwest A&F University, Yangling, Shaanxi, PR China
Hypothesis
How do financial inclusion and institutional quality impact carbon dioxide emissions in SAARC economies?
Conclusion
The study found that financial inclusion and institutional quality are positively associated with carbon emissions in SAARC countries.
Supporting Evidence
- Financial inclusion indicators like bank branches and ATMs are positively associated with CO2 emissions.
- Improved institutional quality significantly impacts CO2 emissions.
- Control variables such as foreign direct investment and population growth are positively linked to CO2 emissions.
- Globalization has a negative impact on CO2 emissions.
Takeaway
This study shows that when more people have access to banks and better government rules, it can lead to more pollution in South Asian countries.
Methodology
The study used a generalized method of moments (GMM) approach, robust moment method quantile regression (MM-QR), and Granger causality tests.
Limitations
The study could not include data from all eight SAARC countries due to unavailability, which may limit the comprehensiveness of the findings.
Participant Demographics
The sample includes seven SAARC countries: Pakistan, Sri Lanka, Bangladesh, Bhutan, Nepal, Maldives, and India.
Statistical Information
P-Value
p<0.05
Statistical Significance
p<0.05
Digital Object Identifier (DOI)
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