Arbeitspapier

Financial Devlopment, Environmental Quality, Trade and Economic Growth: What Causes What in MENA Countries?

This paper examines the relationship between financial development, CO2 emissions, trade and economic growth using simultaneous-equation panel data models for a panel of 12 MENA countries over the period 1990-2011. Our results indicate that there is evidence of bidirectional causality between CO2 emissions and economic growth. Economic growth and trade openness are interrelated i.e. bidirectional causality. Feedback hypothesis is validated between trade openness and financial development. Neutrality hypothesis is identified between CO2 emissions and financial development. Unidirectional causality running from financial development to economic growth and from trade openness to CO2 emissions is identified. Our empirical results also verified the existence of environmental Kuznets curve. These empirical insights are of particular interest to policymakers as they help build sound economic policies to sustain economic development and to improve the environmental quality.

Language
Englisch

Bibliographic citation
Series: CESifo Working Paper ; No. 5204

Classification
Wirtschaft
Financial Markets and the Macroeconomy
Central Banks and Their Policies
Financial Aspects of Economic Integration
Socialist Systems and Transitional Economies: Political Economy; Property Rights
Subject
financial development
CO2 emissions
trade
economic growth
simultaneous-equation models

Event
Geistige Schöpfung
(who)
Omri, Anis
Daly, Saida
Rault, Christophe
Chaibi, Anissa
Event
Veröffentlichung
(who)
Center for Economic Studies and ifo Institute (CESifo)
(where)
Munich
(when)
2015

Handle
Last update
10.03.2025, 11:42 AM CET

Data provider

This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.

Object type

  • Arbeitspapier

Associated

  • Omri, Anis
  • Daly, Saida
  • Rault, Christophe
  • Chaibi, Anissa
  • Center for Economic Studies and ifo Institute (CESifo)

Time of origin

  • 2015

Other Objects (12)