Green Finance And Economic Growth

Abstract

Green finance has been found to be essential in resolving environmental problems so as to further promote natural sustainability across economies. This stable development is found to have a relationship with economic growth, particularly in countries that desire sustainable growth. In the case that green finance is substantially known to discover whether have an effect on economic growth, this scholar has contributed to the light of the association between green funding and economic development through countries through a new dataset. In this paper, the investigation focuses on the impacts of green finance (GF) along with other traditional economic variables on economic growth (ECG). For further exploration, the related data are collected to serve this observation. In this finding, a dataset is gathered mainly from the World Bank from 2000 to 2019. This range is standardized enough for international research which is helpful for upcoming arrivals of investigation in this area. Generated the result using the Mean Group (MG) estimator as a baseline estimation, showing that green finance significantly did not promote growth rate within nations during the witnessed period. It then found out that the other traditional economic variables such as income level, trade openness and government consumption also had a negative impact on economic growth. In contrast, financial development is illustrated to positively affect emergent markets. The rest of the variables- economic freedom, urbanization and inflation show an insignificant relationship with economic growth. The scholar contributes to the literature review for policymakers and businesses discussion in a sample of nations to promote green finance, a vital driver to sustainable development goals.