IDEAS home Printed from https://ideas.repec.org/a/eme/jfrcpp/jfrc-01-2021-0006.html
   My bibliography  Save this article

The impact of green growth on financial stability

Author

Listed:
  • Imran Abbas Jadoon
  • Raheel Mumtaz
  • Jibran Sheikh
  • Usman Ayub
  • Mohammad Tahir

Abstract

Purpose - The international institutions, policymakers and governments are promoting green growth as a policy objective for global financial stability (FS) without sound empirical investigation. Therefore, the purpose of this study is to investigate whether the green economy would be successful in achieving its main objective i.e. stabilizing the world financial system because the investment stakes are too high for this green transition. Design/methodology/approach - The study used the two-step system generalized method of moments (GMM) methodology on panel data of 90 countries for 6 years from 2010 to 2015 to investigate the impact of green growth economy on FS. Findings - The results of the current study revealed that overall green growth enhanced FS in the country for both the short and long run. However, the social inclusive dimension of green growth was irrelevant in creating FS. Research limitations/implications - The results of the current study validate the growth-led finance hypothesis and encourage the policymakers to strengthen the policy initiative for green growth. Because green growth mitigates economic and environmental risk to create a stable financial environment. However, social inclusiveness needs to be explored through alternate paradigm in relevance to FS. Originality/value - As per the author’s knowledge, it is a pioneer study to empirically investigate the impact of green growth on FS which would be useful in understanding the green growth and FS dynamics.

Suggested Citation

  • Imran Abbas Jadoon & Raheel Mumtaz & Jibran Sheikh & Usman Ayub & Mohammad Tahir, 2021. "The impact of green growth on financial stability," Journal of Financial Regulation and Compliance, Emerald Group Publishing Limited, vol. 29(5), pages 533-560, July.
    • Handle: RePEc:eme:jfrcpp:jfrc-01-2021-0006
    DOI: 10.1108/JFRC-01-2021-0006
    as

    Download full text from publisher

    File URL: https://www.emerald.com/insight/content/doi/10.1108/JFRC-01-2021-0006/full/html?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://www.emerald.com/insight/content/doi/10.1108/JFRC-01-2021-0006/full/pdf?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1108/JFRC-01-2021-0006?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Tao Lian & Changhao Li, 2024. "Linking Environmental Sustainability and Financial Resilience through the Environmental Footprints and Their Determinants: A Panel Data Approach for G7 Countries," Sustainability, MDPI, vol. 16(17), pages 1-17, September.
    2. Hailei Zhao, 2023. "Risk Management of Supply Chain Green Finance Based on Sustainable Ecological Environment," Sustainability, MDPI, vol. 15(9), pages 1-15, May.
    3. De Pascale, Gianluigi & Romagno, Anna, 2024. "Globalization and ICT capital endowment: How do they impact on an inclusive Green Growth Index?," Structural Change and Economic Dynamics, Elsevier, vol. 69(C), pages 463-474.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eme:jfrcpp:jfrc-01-2021-0006. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Emerald Support (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.