Year
2020
Country
Qatar
Language
English
Abstract
| The rising importance of financial development in affecting environmental quality has attained the attention of various researchers in the recent decades. In particular, financial sector can play an important role in contributing to dominant ‘linear economy paradigm’ at the cost of quality of environment. In contrast, financial sector can also contribute to circular/ecological economy, thereby preserving the environment for future generations. This study analyzes the relationship between financial development and ecological footprint using the panel data of 38 OIC countries over the period 1971-2017. The empirical results are estimated using panel data estimators. The findings reveal that financial development helps to improve the quality of environment by lowering ecological footprint in Muslim majority countries. However, the results also reveal that financial development is a source of high ecological footprint in affluent OIC countries. Thus, financial sector can contribute to ‘linear economy paradigm’ as well as ‘circular economy paradigm’ depending upon the priorities of financial sector. Findings of the study are shown to be robust to a number of robustness checks. The study offers important policy implications for the Muslim world. |
English
City
CIS minaretein
Conf. Start Date
Conf. End Date
Select type of work
CIS Program Old
CIS publications
No
CIS Thesis
No