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The Impact of Financial Development and Innovation on Green Growth: An Empirical Investigation on Emerging Countries

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New Approaches to CSR, Sustainability and Accountability, Volume V

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Abstract

This paper investigates the impact of financial development and innovation on green growth in 15 emerging countries. We apply a fixed effect model with feasible generalized least squares (FGLS) based on the Parks-Kmenta method in the period of 1995–2019. Domestic credits by banks and stock market returns are a proxy of financial development. Patent application growth represents innovation. Foreign direct investments, Human Development Index, and urbanization are used as control variables. We examine green growth by adding resource depletion and carbon emissions impairment from GDP Empirical results show that stock market return has a significant positive effect on green growth. However, urbanization harms green growth. This paper supplies important policy implications for green growth in emerging countries.

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Authors and Affiliations

  1. Faculty of Business Administration, Marmara University, Istanbul, Turkey

    Burak Arzova

  2. Iktisadi Ve Idari Bilimler Fakultesi Isletme Bolumu, Yildiz Teknik Universitesi, Esenler, Turkey

    Bertaç Şakir Şahin

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  1. Burak Arzova
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  2. Bertaç Şakir Şahin
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Correspondence to Bertaç Şakir Şahin .

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Editors and Affiliations

  1. School of Finance and Management, Centre for Forensic Accounting Research and Enterprise, SOAS University of London, London, UK

    Kıymet Tunca Çalıyurt

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Arzova, B., Şahin, B.Ş. (2024). The Impact of Financial Development and Innovation on Green Growth: An Empirical Investigation on Emerging Countries. In: Çalıyurt, K.T. (eds) New Approaches to CSR, Sustainability and Accountability, Volume V. Accounting, Finance, Sustainability, Governance & Fraud: Theory and Application. Springer, Singapore. https://doi.org/10.1007/978-981-99-9145-7_13

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