Proceedings of The 5th International Academic Conference on Management and Economics
Year: 2022
DOI:
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A Panel Data Analysis on the Validity of the Financial and Environmental Kuznets Curve: A Review on Selected Countries
Ast. Prof. Nihat Doganalp
ABSTRACT:
One of the main development indicators of economies is that they have a sound and healthy financial system. In countries where financial development is at optimum levels, especially those in the lower and middle income groups have easier access to financial instruments, and thus financial development plays an important role in the redistribution of income. On the other hand, increasing financial development has an impact on economic growth, as well as on the deterioration of environmental resources at the beginning, and after a certain point, their decrease due to the possible use of renewable energy resources. The main purpose of this study is to try to test whether the financial and environmental Kuznets curve hypothesis is valid for the selected country group with the help of a panel data analysis. In this framework, the share of domestic private credits in GDP will be used as a financial development variable, the increase in per capita income will be used as an indicator of economic development, and the Gini coefficient will be used as a variable of income distribution, and CO2 emissions will be used as a variable of environmental deterioration.
keywords: EKC, FKC, Financial Development, Environmental Deterioration, Economic Development.