Combining the financial development and stock market return for green economic recovery in selected developing economies

By endogenizing foreign direct investment (FDI), trade openness, and economic growth, we analyze the influence of stock market development on the green economic recovery using the panel dataset for selected developing economies from the period of 2000 to 2020. The unique panel quantile regression (P...

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Bibliographic Details
Published in:Economic change and restructuring 2023-12, Vol.56 (6), p.3885-3908
Main Authors: Sheng, Jin, Gao, Yubin
Format: Article
Language:English
Subjects:
Developing countries
Development Economics
Economic development
Economic Growth
Economic Policy
Economic recovery
Economics
Economics and Finance
Foreign investment
Green economy
Greenhouse gases
Innovations
International Economics
LDCs
Macroeconomics/Monetary Economics//Financial Economics
Openness
Policy making
Political Economy/Economic Systems
Rates of return
Securities markets
Stock exchanges
Technological change
Trade
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Summary:By endogenizing foreign direct investment (FDI), trade openness, and economic growth, we analyze the influence of stock market development on the green economic recovery using the panel dataset for selected developing economies from the period of 2000 to 2020. The unique panel quantile regression (PQR) approach is used to examine the impact of stock market–green recovery nexus. Importantly, our empirical findings explain the effect of stock markets on the development of green economic recovery in the selected developing economies. According to the results, increasing trade openness and economic development have a considerable impact on technological innovation and reducing the emission of GHGs. Additionally, PQR data show that green recovery initiatives are encouraged in developing economies with high (0.70) quantile stock markets where equity markets are comparatively more developed are encouraged. By promoting trade openness in developing economies, financial development promotes green economic recovery. Our study also contributes significantly to the empirical literature and makes crucial recommendations for policy formation.
ISSN:1573-9414
1574-0277
DOI:10.1007/s10644-022-09454-9