Nexus between financial development and carbon emission in Bangladesh: Evidence from ARDL and NARDL
School of Business and Economics, United International University, Bangladesh.
Research Article
GSC Advanced Research and Reviews, 2023, 14(03), 300–312.
Article DOI: 10.30574/gscarr.2023.14.3.0097
Publication history:
Received on 18 February 2023; revised on 26 March 2023; accepted on 29 March 2023
Abstract:
The motivation of the study is to assess the impact of financial development, trade openness and foreign direct investment on environmental sustainability in Bangladesh for the period 1990-2019. The results of combined cointegration and Makki cointegration revealed long-run cointegration between explained and explanatory variables, moreover the cointegration test under symmetry and asymmetry established the similar line of evidences. Referring to the coefficients of FD, TO and FDI, it is apparat that population haven hypothesis has revealed, suggesting the environmental degradation has expedited due to FD, TO and FDI in Bangladesh in the long and short run. Additionally, the asymmetric assessment revealed nonlinear linkage between explained and explanatory variables in the long-run and short-run.
Keywords:
Financial Development; Trade Openness; FDI; Environmental sustainability; ARDL; NATDL
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Copyright © 2023 Author(s) retain the copyright of this article. This article is published under the terms of the Creative Commons Attribution Liscense 4.0
