TY - JOUR ID - 38978 TI - Effect of financial development and institutional quality on the environmental degradation in developed and developing countries JO - International Journal of Human Capital in Urban Management JA - IJHCUM LA - en SN - 2476-4698 AU - Batool, M. AU - Jehan, Y. AU - Hayat, N. AD - Department of Managment, University of Baltistan, Gilget Baltistan, Skardu, Pakistan AD - Department of Economics, Bacha Khan University, Charsadda, Khyber Pakhtunkhwa, Pakistan Y1 - 2020 PY - 2020 VL - 5 IS - 2 SP - 111 EP - 124 KW - CO2 emissions KW - economic growth KW - Financial Development Index KW - Gross domestic product (GDP) KW - Institutional Quality DO - 10.22034/IJHCUM.2020.02.03 N2 - Environmental pollutants have become a dreadful problem and burning issues for the present world irrespective of a country who is responsible for it. The objective of the study is to investigate impact of financial development and institutional quality on environmental degradation. The study is based on panel data for developing and developed countries over the time of 1996-2016. For the empirical analysis fixed effect and the random effect is carried out. Results show that institutional quality, economic growth, foreign direct investment, gross primary enrolment, and industrial growth have significant positive effect on corban emissions whereas financial development, population growth, trade openness, urban population and R&D expenditures have significant negative effect on corban emissions. One percent point increase in the index of institutional quality leads towards 0.006 percent points increase in the level of CO2 emissions. One percent point increase in the economic growth lead to increase the CO2 emissions by 0.39 percent points. One percent point increase in inflows of foreign direct investment increase the level of CO2 emissions by 0.016 percent points. One percent point increase in industrial growth leads to a 0.38 percent points increase in the level of CO2 emissions. Furthermore, one percent point increase in the index of financial development leads to 0.05 percent points decrease in the level of CO2 emissions. One percent point increase in urban population leads to almost 0.05 percent points fall in the level of CO2 emissions. Finally, one percent point rise in R&D expenditures leads to decrease in the level of CO2 emissions by 0.068 percent points. UR - https://www.ijhcum.net/article_38978.html L1 - https://www.ijhcum.net/article_38978_b22bfec8b720561b1d2b89799a2cf507.pdf ER -