Abstract
Analysis of the Effects Financial Development, Economic Growth and Technological Development on Environmental Quality in Emerging Market Economies
The purpose of this study is to analyze the impact of financial development, economic growth and technological development on environmental quality in the period of 1995-2014 for 10 rising market economy. In the analysis, new generation panel data methods are used considering horizontal section dependency. In the study, first it was investigated whether there is horizontal section dependency in variables and model. Then homogeneity test was applied. The series of stationarity was investigated by CADF unit root test. The long-run relationship between variables was analyzed by Westerlund and Edgerton (2007) and Durbin-H panel cointegration test. Individual and panel cointegration coefficients of the long run was calculated by the Augmented Mean Group Estimator (AMG) estimator developed by Eberhardt and Bond (2009), which considers the horizontal section dependency. As a result of the panel cointegration test, it has been found that there is a long run relationship between financial development, economic growth, technological development and CO2 emissions. In the panel overall; there is no relationship between financial development and technological development and CO2 emissions. On the other hand, there is a positive and statistically significant relationship between economic growth and CO2 emissions. In other words, economic growth reduces environmental quality.
Keywords
Financial Development, Economic Growth, Technological Development, Environmental Quality, Emerging M
