Department of Commerce, The Islamia University of Bhawalpur, Bahawalpur, Pakistan.
School of Economics & Management, Nanjing University of Science and Technology, Nanjing, China.
Environ Sci Pollut Res Int. 2023 Nov;30(54):115965-115983. doi: 10.1007/s11356-023-30362-6. Epub 2023 Oct 28.
Financial stability is essential for economic growth because it fosters confidence and trust and promotes investment in green development. However, it is a dilemma for the world economies to create an equilibrium between financial stability and environmental sustainability. In the extent of these challenges, the present study aims at grabbing the link of financial inclusion to attain financial stability. Further, the present study investigates the association of institutional quality, renewable energy, green growth, environmental sustainability, and financial inclusion with financial stability. Two basic econometric models are applied that focused on the basic and interaction term outcomes. In addition, principal component analysis (PCA) is analyzed to design an index for five proxies of financial inclusion. Additionally, the research inspected the interaction term of institutional quality and financial inclusion (FIN*INSQ) and determined the multiplied impact on financial stability in a separate model. This research employed the linear autoregressive distributed lag approach from 1990 to 2020 for long- and short-term dynamics. Theoretically, the research supports the sustainable finance and financial development theory. Hence, results showed that financial inclusion and institutional quality are positively associated with financial stability, while green growth, environmental sustainability, and renewable energy mechanisms are achieved through financial stability. Following our findings, the government should establish consistency between financial development and economic policies to maintain financial instability and ensure financial soundness. Furthermore, countries require viable financial institutions prioritizing green growth and institutional quality to achieve financial stability and long-term development.
金融稳定对于经济增长至关重要，因为它能增强信心和信任，促进绿色发展投资。然而，在世界经济中，在金融稳定和环境可持续性之间创造平衡是一个困境。在这些挑战的范围内，本研究旨在探讨金融包容与实现金融稳定之间的联系。此外，本研究调查了制度质量、可再生能源、绿色增长、环境可持续性和金融包容与金融稳定之间的关联。应用了两种基本的计量经济学模型，分别侧重于基本和交互项结果。此外，还进行了主成分分析（PCA），以设计金融包容的五个代理指标的指数。此外，研究检验了制度质量和金融包容（FIN*INSQ）的交互项，并在单独的模型中确定了其对金融稳定的倍增影响。本研究采用了 1990 年至 2020 年的线性自回归分布滞后方法，研究了长期和短期动态。从理论上讲，本研究支持可持续金融和金融发展理论。因此，结果表明，金融包容和制度质量与金融稳定呈正相关，而绿色增长、环境可持续性和可再生能源机制则通过金融稳定来实现。根据我们的研究结果，政府应在金融发展和经济政策之间建立一致性，以维持金融稳定并确保金融稳健。此外，各国需要有可行的金融机构，优先考虑绿色增长和制度质量，以实现金融稳定和长期发展。
