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Combining Economic Growth and Financial Development in Environment-Health Nexus

Author

Listed:
  • Han Dongping
  • Mansoor Ahmed Golo
  • Qamaruddin Mahar
  • Syed Safdar Ali Shah
  • Maysa Kadyrova

Abstract

This study examines the impact of monetary developments on environmental quality and economic growth. We utilize ARDL/PMG models to study twelve climatically vulnerable countries from 1996 to 2018. We find that a 1% increase in real GDP and domestic credit harms the environment by 0.827% and 0.220%, respectively. However, savings improve environmental excellence by 0.373%. A 1% environmental degradation decreases human health by 0.317%; consequently, economic growth declines by 1.102%. Good governance emerges as a key solution, with a 1% improvement in public institutions mitigating the adverse impact of real GDP on the environment by 0.777%. Redirecting 1% of loans to eco-friendly projects improves the environment by 1.311%. Dumitrescu-Hurlin and PVAR Granger tests support these findings.

Suggested Citation

  • Han Dongping & Mansoor Ahmed Golo & Qamaruddin Mahar & Syed Safdar Ali Shah & Maysa Kadyrova, 2023. "Combining Economic Growth and Financial Development in Environment-Health Nexus," Politická ekonomie, Prague University of Economics and Business, vol. 2023(6), pages 730-757.
    • Handle: RePEc:prg:jnlpol:v:2023:y:2023:i:6:id:1405:p:730-757
    DOI: 10.18267/j.polek.1405
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    References listed on IDEAS

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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Environmental degradation index; human health index; PCA technique; panel ARDL method; good governance; high-risk countries;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects

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