THE IMPACT OF FINANCIAL DEVELOPMENT, STOCK MARKET, ENERGY CONSUMPTION, GLOBALIZATION, AND GROSS CAPITAL FORMATION ON ECONOMIC GROWTH AND ENVIRONMENTAL SUSTAINABILITY /
Bydoun, Hala
THE IMPACT OF FINANCIAL DEVELOPMENT, STOCK MARKET, ENERGY CONSUMPTION, GLOBALIZATION, AND GROSS CAPITAL FORMATION ON ECONOMIC GROWTH AND ENVIRONMENTAL SUSTAINABILITY / EVIDENCE FROM THE GCC COUNTRIES HALA BYDOUN; SUPERVISOR: PROF. DR. MEHMET AĞA - 209 sheets; 31 cm. Includes CD
Thesis (PhD) - Cyprus International University. Institute of Graduate Studies and Research Accounting and Finance Department
Includes bibliography (sheets 183-204)
ABSTRACT
The continuing combustion of fossil fuels is proven to be one of the world's most significant concerns as time passes. Also, achieving environmental sustainability whilst minimizing the climate change effect has become a global endeavor. Hence, this study examines the impact of each of financial development (FD), stock market (SM), globalization (GLO), and gross capital formation (GCF) on economic growth (GDP) and carbon or CO2 emissions (CO2) in the Gulf Cooperation Council (GCC) countries. Besides, it assesses the influence of energy consumption (EC) and economic growth (GDP) on CO2 emissions, and thus, it scrutinizes whether these variables contribute to environmental degradation in the GCC countries.
The data used in this research covers the period spanning from 2000 to 2016. In order to investigate the above–mentioned relationships in the GCC economies, the study utilizes different methods and estimation approaches, including cross–sectional dependence (CSD) test, slope heterogeneity (SH) test, stationarity test, Westerlund cointegration test, cross–sectionally augmented autoregressive distributed lag (CS–ARDL), fully modified ordinary least square (FMOLS) and panel ordinary least square (POLS) in addition to the causality test of Dumitrescu and Hurlin (DH). Consequently, the empirical analysis unveils the following outcomes for the GCC countries: (a) SM and FD trigger GDP positively; (b) GCF and GLO contribute to GDP; (c) SM, GDP, GCF, and EC cause environmental decline; (d) FD does not impact environmental degradation; (e) GLO helps to mitigate it. Furthermore, the results of the causality test disclose that: (a) SM, GLO, and GCF can predict GDP; (b) SM, GLO, and GCF can predict CO2. Besides, the outcomes of FMOLS and POLS reveal that the results are robust.
Essentially, this research provides numerous–vital contributions to the existing studies. First, it examines the effect of financial development, stock market, globalization, gross capital formation, energy consumption, and economic growth on CO2 emissions in the GCC nations by incorporating different aspects that are crucial to the economies of these countries. Furthermore, this study uses an advanced panel data estimation approach, and it utilizes a novel CS–ARDL model to solve the problems of heterogeneity and CSD of panel data, which are ignored by previous studies.
By referring to the empirical findings of the conducted research, the study suggests a multipronged policy framework, based on the need for complementarity between the growth of the economy and the environmental goals, to assist the chosen countries in achieving the Sustainable Development Goals (SDGs), with a particular emphasis on SDGs 7, 8, 9, and 13. Moreover, and when establishing economic expansion strategies, the GCC countries should be cautious not to jeopardize environmental quality. Further policy suggestions are presented in the last section of the thesis.
Carbon dioxide--Dissertations, Academic
Economic development--Dissertations, Academic
Energy consumption--Dissertations, Academic
Environmental degradation--Dissertations, Academic
Sustainability--Dissertations, Academic
Globalization--Dissertations, Academic
THE IMPACT OF FINANCIAL DEVELOPMENT, STOCK MARKET, ENERGY CONSUMPTION, GLOBALIZATION, AND GROSS CAPITAL FORMATION ON ECONOMIC GROWTH AND ENVIRONMENTAL SUSTAINABILITY / EVIDENCE FROM THE GCC COUNTRIES HALA BYDOUN; SUPERVISOR: PROF. DR. MEHMET AĞA - 209 sheets; 31 cm. Includes CD
Thesis (PhD) - Cyprus International University. Institute of Graduate Studies and Research Accounting and Finance Department
Includes bibliography (sheets 183-204)
ABSTRACT
The continuing combustion of fossil fuels is proven to be one of the world's most significant concerns as time passes. Also, achieving environmental sustainability whilst minimizing the climate change effect has become a global endeavor. Hence, this study examines the impact of each of financial development (FD), stock market (SM), globalization (GLO), and gross capital formation (GCF) on economic growth (GDP) and carbon or CO2 emissions (CO2) in the Gulf Cooperation Council (GCC) countries. Besides, it assesses the influence of energy consumption (EC) and economic growth (GDP) on CO2 emissions, and thus, it scrutinizes whether these variables contribute to environmental degradation in the GCC countries.
The data used in this research covers the period spanning from 2000 to 2016. In order to investigate the above–mentioned relationships in the GCC economies, the study utilizes different methods and estimation approaches, including cross–sectional dependence (CSD) test, slope heterogeneity (SH) test, stationarity test, Westerlund cointegration test, cross–sectionally augmented autoregressive distributed lag (CS–ARDL), fully modified ordinary least square (FMOLS) and panel ordinary least square (POLS) in addition to the causality test of Dumitrescu and Hurlin (DH). Consequently, the empirical analysis unveils the following outcomes for the GCC countries: (a) SM and FD trigger GDP positively; (b) GCF and GLO contribute to GDP; (c) SM, GDP, GCF, and EC cause environmental decline; (d) FD does not impact environmental degradation; (e) GLO helps to mitigate it. Furthermore, the results of the causality test disclose that: (a) SM, GLO, and GCF can predict GDP; (b) SM, GLO, and GCF can predict CO2. Besides, the outcomes of FMOLS and POLS reveal that the results are robust.
Essentially, this research provides numerous–vital contributions to the existing studies. First, it examines the effect of financial development, stock market, globalization, gross capital formation, energy consumption, and economic growth on CO2 emissions in the GCC nations by incorporating different aspects that are crucial to the economies of these countries. Furthermore, this study uses an advanced panel data estimation approach, and it utilizes a novel CS–ARDL model to solve the problems of heterogeneity and CSD of panel data, which are ignored by previous studies.
By referring to the empirical findings of the conducted research, the study suggests a multipronged policy framework, based on the need for complementarity between the growth of the economy and the environmental goals, to assist the chosen countries in achieving the Sustainable Development Goals (SDGs), with a particular emphasis on SDGs 7, 8, 9, and 13. Moreover, and when establishing economic expansion strategies, the GCC countries should be cautious not to jeopardize environmental quality. Further policy suggestions are presented in the last section of the thesis.
Carbon dioxide--Dissertations, Academic
Economic development--Dissertations, Academic
Energy consumption--Dissertations, Academic
Environmental degradation--Dissertations, Academic
Sustainability--Dissertations, Academic
Globalization--Dissertations, Academic