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The effect of financial development on ecological footprint in BRI countries: evidence from panel data estimation

  • Muhammad Awais Baloch
  • Jianjun ZhangEmail author
  • Kashif Iqbal
  • Zeeshan Iqbal
Research Article
  • 51 Downloads

Abstract

This work aims to contribute to the existing literature by investigating at the impact of financial development on ecological footprint. To achieve this goal, we have employed Driscoll-Kraay panel regression model for a panel of 59 Belt and Road countries in the period from 1990 to 2016. The findings suggest that financial development increases ecological footprint. Moreover, economic growth, energy consumption, foreign direct investment (FDI), and urbanization pollute the environment by increasing ecological footprint. In addition, several diagnostic tests have been applied to confirm the reliability and validity of the results. From the outcome of the study, various policy implications have been proposed for Belt and Road countries to minimize the ecological footprint.

Keywords

Financial development Ecological footprint Driscoll-Kraay panel regression BRI countries 

Notes

Acknowledgment

The authors want to say thanks to the Editor Dr. Philippe Garrigues as well as to the two anonymous referees for providing valuable suggestions, which substantially improved this article.

Funding information

The study is supported by the Projects of the National Social Science Foundation of China (No: 15XJL006).

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Copyright information

© Springer-Verlag GmbH Germany, part of Springer Nature 2019

Authors and Affiliations

  1. 1.School of Management and EconomicsBeijing Institute of TechnologyBeijingChina
  2. 2.School of Economics and ManagementXi’dian UniversityXi’anChina
  3. 3.School of Economics and ManagementBeijing University of Posts and TelecommunicationsBeijingChina
  4. 4.School of Public AdministrationUniversity of International Business and EconomicsBeijingChina

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