THE LINK BETWEEN FINANCIAL DEVELOPMENT AND ENVIRONMENTAL PERFORMANCE: AN EMPIRICAL ANALYSIS OF THE WORLD ECONOMY
t The paper explores the link between financial development and environmental performance in the world economy. The cross-country regression including 173 countries is based on 2020 data on Environmental Performance Index (EPI) compiled by the experts of Yale University and 2019 Financial Develop...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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Academica Brâncuşi
2021-10-01
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| Series: | Analele Universităţii Constantin Brâncuşi din Târgu Jiu : Seria Economie |
| Subjects: | |
| Online Access: | https://www.utgjiu.ro/revista/ec/pdf/2021-05/14_Neagu.pdf |
| _version_ | 1827091451524153344 |
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| author | NEAGU OLIMPIA PORUMBĂCEAN TEODORA |
| author_facet | NEAGU OLIMPIA PORUMBĂCEAN TEODORA |
| author_sort | NEAGU OLIMPIA |
| collection | DOAJ |
| description | t
The paper explores the link between financial development and environmental performance in the world
economy. The cross-country regression including 173 countries is based on 2020 data on Environmental Performance
Index (EPI) compiled by the experts of Yale University and 2019 Financial Development Index (FDI) data provided by
IMF. The results show that financial development is positively associated with environmental performance and this
positive relationship is more powerful in countries with low development of financial sector. It is also revealed a
validated causality running from financial development to environmental performance in the world economy and also,
in the group of well and less financial developed countries, respectively. The paper highlights the importance of the
development level of financial sector for environmental sustainability, especially on ecosystem health. Paper's findings
suggest an urgent call for appropriate policy measures in all countries, targeting the strengthening of financial
institutions and markets (access, depth and efficiency). It is possible in this way for economies to be more empowered
in the fight against the environmental degradation and for the improvement of environmental quality |
| first_indexed | 2024-04-11T08:13:49Z |
| format | Article |
| id | doaj.art-868e228b927f4da2a4d1bfafdae7575f |
| institution | Directory Open Access Journal |
| issn | 1844-7007 |
| language | English |
| last_indexed | 2025-03-20T05:56:31Z |
| publishDate | 2021-10-01 |
| publisher | Academica Brâncuşi |
| record_format | Article |
| series | Analele Universităţii Constantin Brâncuşi din Târgu Jiu : Seria Economie |
| spelling | doaj.art-868e228b927f4da2a4d1bfafdae7575f2024-10-02T23:26:59ZengAcademica BrâncuşiAnalele Universităţii Constantin Brâncuşi din Târgu Jiu : Seria Economie1844-70072021-10-015120128THE LINK BETWEEN FINANCIAL DEVELOPMENT AND ENVIRONMENTAL PERFORMANCE: AN EMPIRICAL ANALYSIS OF THE WORLD ECONOMYNEAGU OLIMPIA 0PORUMBĂCEAN TEODORA1”VASILE GOLDIȘ”WESTERN UNIVERSITY OF ARAD; UNIVERSITY OF ORADEA-DOCTORAL SCHOOL IN ECONOMIC SCIENCES”BABEȘ-BOLYAI” UNIVERSITY OF CLUJ-NAPOCAt The paper explores the link between financial development and environmental performance in the world economy. The cross-country regression including 173 countries is based on 2020 data on Environmental Performance Index (EPI) compiled by the experts of Yale University and 2019 Financial Development Index (FDI) data provided by IMF. The results show that financial development is positively associated with environmental performance and this positive relationship is more powerful in countries with low development of financial sector. It is also revealed a validated causality running from financial development to environmental performance in the world economy and also, in the group of well and less financial developed countries, respectively. The paper highlights the importance of the development level of financial sector for environmental sustainability, especially on ecosystem health. Paper's findings suggest an urgent call for appropriate policy measures in all countries, targeting the strengthening of financial institutions and markets (access, depth and efficiency). It is possible in this way for economies to be more empowered in the fight against the environmental degradation and for the improvement of environmental qualityhttps://www.utgjiu.ro/revista/ec/pdf/2021-05/14_Neagu.pdffinancial developmentenvironmentsustainabilitycross-section model |
| spellingShingle | NEAGU OLIMPIA PORUMBĂCEAN TEODORA THE LINK BETWEEN FINANCIAL DEVELOPMENT AND ENVIRONMENTAL PERFORMANCE: AN EMPIRICAL ANALYSIS OF THE WORLD ECONOMY Analele Universităţii Constantin Brâncuşi din Târgu Jiu : Seria Economie financial development environment sustainability cross-section model |
| title | THE LINK BETWEEN FINANCIAL DEVELOPMENT AND ENVIRONMENTAL PERFORMANCE: AN EMPIRICAL ANALYSIS OF THE WORLD ECONOMY |
| title_full | THE LINK BETWEEN FINANCIAL DEVELOPMENT AND ENVIRONMENTAL PERFORMANCE: AN EMPIRICAL ANALYSIS OF THE WORLD ECONOMY |
| title_fullStr | THE LINK BETWEEN FINANCIAL DEVELOPMENT AND ENVIRONMENTAL PERFORMANCE: AN EMPIRICAL ANALYSIS OF THE WORLD ECONOMY |
| title_full_unstemmed | THE LINK BETWEEN FINANCIAL DEVELOPMENT AND ENVIRONMENTAL PERFORMANCE: AN EMPIRICAL ANALYSIS OF THE WORLD ECONOMY |
| title_short | THE LINK BETWEEN FINANCIAL DEVELOPMENT AND ENVIRONMENTAL PERFORMANCE: AN EMPIRICAL ANALYSIS OF THE WORLD ECONOMY |
| title_sort | link between financial development and environmental performance an empirical analysis of the world economy |
| topic | financial development environment sustainability cross-section model |
| url | https://www.utgjiu.ro/revista/ec/pdf/2021-05/14_Neagu.pdf |
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