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Nexus of financial stability and natural resources markets on green economic growth: Role of commodity markets in China

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  • Wang, Fei
  • Shi, Yin
  • Sui, Yue

Abstract

This study explores the complex correlation between financial stability and its extensive effects on the market dynamics of agricultural commodities, the levels of carbon dioxide emissions in the atmosphere, and the quest for long-term economic recovery. The foundation of our analysis is based on an extensive dataset that covers the period from 2012 to 2020, with particular emphasis on China. Our analytical approach utilizes many statistical tests such as the Johansen cointegration test, vector error correction model, ARCH, GARCH, and DCC-EGARCH tests. The results of this study uncover some noteworthy observations. When considering the fluctuation of agricultural prices and carbon emissions, it becomes clear that financial stability plays a crucial role. Furthermore, ensuring the preservation of monetary stability is essential in promoting the growth of a sustainable and ecologically aware economic recovery. In addition, our research reveals a compelling association between financial stability and several crucial characteristics.

Suggested Citation

  • Wang, Fei & Shi, Yin & Sui, Yue, 2024. "Nexus of financial stability and natural resources markets on green economic growth: Role of commodity markets in China," Resources Policy, Elsevier, vol. 90(C).
    • Handle: RePEc:eee:jrpoli:v:90:y:2024:i:c:s0301420724000564
    DOI: 10.1016/j.resourpol.2024.104689
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