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THE ROLE OF FINANCIAL DEVELOPMENT, EDUCATION AND ECONOMIC GROWTH ON ENVIRONMENTAL QUALITY IN CAMEROON

Year 2020, Volume: 9 Issue: 3, 232 - 244, 30.09.2020

Aboubakary Nulambeh Ndzembanteh Kadir Yasin Eryiğit

https://doi.org/10.17261/Pressacademia.2020.1299

Abstract

Purpose - The using of economic growth as an instrument to alleviate poverty in developing countries remains a challenge, as economic growth often emerges with greenhouse gases. In this regard, this study aimed to examine the impact of education, financial development, and economic growth on environmental quality in Cameroon.
Methodology – This study employs the Autoregressive Distributive Lag (ARDL) and the Toda-Yamamoto causality test methods to examine the relationship between the above-mentioned variables and carbon dioxide emissions in Cameroon’s for the period 1980-2016.
Findings- From the ARDL bounds tests, we found that a long-run relationship exists between the variables and the Toda-Yamamoto causality tests reveal multiple unidirectional causalities, from carbon dioxide to financial development, economic growth, and foreign direct investment and from economic growth to human capital. Similarly, bidirectional causality runs between human capital and energy consumption, between human capital and financial development and lastly, between financial development and foreign direct investment.
Conclusion- It is therefore crucial for the government to develop policies that mitigate the spread of pollution and to encourage the practice of green education and sustainable finance in Cameroon.

Keywords

Cameroon human capital economic growth financial development environmental quality

References

  • Aali-Bujari, A., Venegas-Martínez, F., & Palafox-Roca, A. O. (2017). Impact of Energy Consumption on Economic Growth in Major Organization for Economic Cooperation and Development Economies (1977-2014): A Panel Data Approach. International Journal of Energy Economics and Policy, 7(72), 18–25.
  • Abdouli, M., & Hammami, S. (2017). The Impact of FDI Inflows and Environmental Quality on Economic Growth: an Empirical Study for the MENA Countries. Journal of the Knowledge Economy, 8(1), 254–278.
  • Aboagye, S. (2015). Towards Economic Growth and Development in Sub-Saharan Africa: Does That Mar the Environment? The Department of Economics, University of Ghana, Accra, 1–17.
  • Alam, M. S. and S. J. H. S. and N. A. and S. (2016). Financial development and environmental quality: The way forward. In MPRA Working Paper (Issue 46733).
  • Ali, M. (2018). Environmental Degradation in France : The Effects of FDI , Financial Development , and Energy Innovations. In MPRA Working Paper (Issue 26 July).
  • Awad, A., & Warsame, M. H. (2017). Climate Changes in Africa : Does Economic Growth Matter ? A Semi-parametric Approach. International Journal of Energy Economics and Policy, 7(1), 1–8.
  • Beck, T. (2013). Finance for development : A research agenda. In Development Dilemmas (Issue September, pp. 4–27).
  • Bond, C. A., Burger, N., Nguyen, P., & Justice, R. (2015). Implications of Australian Economic Growth for Environmental Sustainability.
  • Brock, W. A., & Taylor, M. S. (2010). The Green Solow model. Journal of Economic Growth, 15(2), 127–153.
  • Carillo, F., & Maietta, O. W. (2014). The Relationship between Economic Growth and Environmental Quality : The contributions of economic structure and agricultural policies. New Medit N., 13(1), 15–21.
  • Chakraborty, B., & Gupta, M. R. (2014). Human Capital Accumulation, Environmental Quality, Taxation and Endogenous Growth. In Economic Research Unit, Indian Statistical Institute. (pp. 193–215).
  • Fakher, H., & Abedi, Z. (2017). Relationship between Environmental Quality and Economic Growth in Developing Countries ( based on Environmental Performance Index ). Environmental Energy and Economic Research, 1(3), 299–310.
  • Galeotti, M. (2007). Economic growth and the quality of the environment: Taking stock. Environment, Development and Sustainability, 9(4), 427–454.
  • Goetz, S. J., Debertin, D. L., & Pagoulatos, A. (2016). Human Capital, Income, and Environmental Quality: A State-Level Analysis. Agricultural and Resource Economics Review, 27(02), 200–208.
  • Grossman G.M. and A.B. Krueger (1995), Economic growth and the environment, The Quarterly Journal of Economics 110, 353-377.
  • Harrison, G. S. E. and A. E. (1997). Moving to Greener Pastures? Multinationals and the Pollution Haven Hypothesis 1(January), 1-18.
  • Hilaire, N., & Kaffo Fotio, H. (2014). Effects of Economic Growth on CO2 Emissions in the “Congo Basin” Countries. International Journal of Economics and Finance, 7(1), 107–117.
  • Hundie, S. K. (2018). Modelling Energy Consumption , Carbon Dioxide Emissions and Economic Growth Nexus in Ethiopia : Evidence from Cointegration and Causality Analysis. Turkish Journal of Agriculture - Food Science and Technology Available, 6(6), 699–709.
  • Ioannis Kostakis, S. L. and E. S. (2011). Foreign Direct Investment and Environmental Degradation: Further evidence from Brazil and Singapore. In MPRA Working Paper (Issue 46733).
  • Jesus Clemente, Antonio Montanes, M. R. (1998). Testing for a unit root in variables with a double change in the mean. Economics Letters 59(October), 175–182.
  • Johansen, S. (1988). Statistical Analisis of Cointegration Vectors. Journal Of Economic Dynamics and Control, 12(September), 231–254.
  • Joysri, A. (2009). Fdi , Growth and the Environment : Evidence From India on Co2 Emission During the Last Two Decades. Journal of Economic Development, 34(1), 43–58.
  • Kuznets, S. (1955). Economic Growth and Income Inequality. The American Economic Review, 45(1).
  • Lee, J., & Strazicich, M. C. (2003). Minimum Lagrange Multiple Unit Root Test With Two Structural Breaks. Review of Economics and Statistics, 85(4), 1082–1089.
  • Levine, R. (1997). Financial development and economic growth: views and agenda. Journal of Economic Literature, XXXV(June), 688–726.
  • Levine, R. (2005). Chapter 12 Finance and Growth: Theory and Evidence. In Handbook of Economic Growth (Vol. 1, Issue SUPPL. PART A, pp. 865–934).
  • Li, S., Zhang, J., & Ma, Y. (2015). Financial development, environmental quality and economic growth. Sustainability (Switzerland), 7(7), 9395–9416.
  • Libanda, J., Marshall, D., & Nyasa, L. (2017). The Effect of Foreign Direct Investment on Economic Growth of Developing Countries: The Case of Zambia. British Journal of Economics, Management & Trade, 16(2), 1–15.
  • Moghadam, H. E., & Lotfalipour, M. R. (2015). Impact of Financial Development on the Environmental Quality in Iran. Chinese Business Review, 13(09), 537–551.
  • Mugableh, M. I. (2013). Analysing the CO2 Emissions Function in Malaysia: Autoregressive Distributed Lag Approach. Procedia Economics and Finance, 5(13), 571–580.
  • Munir, S., Chaudhry, I. S., & Akhtar, M. H. (2013). Financial Liberalization and Economic Growth in Pakistan: Empirical Evidence from Co-integration Analysis. In Pakistan Journal of Social Sciences 33(2), 227–241.
  • N. Agarwal, R. (2012). Economic Globalisation, Growth and the Environment: Testing of Environment Kuznet Curve Hypothesis for Malaysia. Journal of Business & Financial Affairs, 01(02), 1–8.
  • Oxfam. (2020). Britons reach Africans’ annual carbon emissions in just two weeks. https://www.theguardian.com/environment/2020
  • Petrosillo, I., Zurlini, G., Corlianò, M. E., Zaccarelli, N., & Dadamo, M. (2007). Tourist perception of recreational environment and management in a marine protected area. Landscape and Urban Planning, 79(1), 29–37.
  • Phimphanthavong, H. (2013). The Impacts of Economic Growth on Environmental Conditions in Laos. Int.J.Buss.Mgt.Eco.Res., 4(5), 766–774.
  • Phuong, N. D., Thi, L., & Tuyen, M. (2018). The Relationship between Foreign Direct Investment, Economic Growth and Environmental Pollution in Vietnam : An Autoregressive Distributed Lags Approach. International Journal of Energy Economics and Policy, 8(5), 138–145.
  • Roth, S. (2017). Air pollution, educational achievements, and human capital formation. In IZA World of Labor (Issue August).
  • Saidi, K., & Hammami, S. (2015). The impact of CO2 emissions and economic growth on energy consumption in 58 countries. Energy Reports, 1, 62–70.
  • Saud, S., Chen, S., Danish, & Haseeb, A. (2019). Impact of financial development and economic growth on environmental quality: an empirical analysis from Belt and Road Initiative (BRI) countries. Environmental Science and Pollution Research, 26(3), 2253–2269.
  • Sehrawat, M., Giri, A. K., & Mohapatra, G. (2015). The impact of financial development, economic growth and energy consumption on environmental degradation: Evidence from India. Management of Environmental Quality: An International Journal, 26(5), 666–682.
  • Selden T.M. and D.S. Song (1994), Environmental quality and development: is there a Kuznets curve for air pollution emissions?, Journal of Environmental Economics & Management 27, 147-162.
  • Soren Johansen, K. J. (1990). Maximum liklihood Estimation and Inference on Cointegration-witth Applications to the Demand for money. Oxford Bulletin of Economics and Statistics, 52 (2), 0305-9049.
  • The World Bank Report. (2009). The World Bank Annual Report. In The World Bank Annual Report.
  • Torras, M., & Boyce, J. K. (1998). Income, inequality, and pollution: A reassessment of the environmental Kuznets curve. Ecological Economics, 25(2), 147–160.
  • Valadez, G. V., & Hu, J. (2016). Relationship between the Environment and Economic Growth in China via Exports : A Perspective of Ecological Impact ( 2000-2014 ). Journal of Environmental Protection, 7(2152–2219), 1670–1692

Year 2020, Volume: 9 Issue: 3, 232 - 244, 30.09.2020

Aboubakary Nulambeh Ndzembanteh Kadir Yasin Eryiğit

https://doi.org/10.17261/Pressacademia.2020.1299

Abstract

References

  • Aali-Bujari, A., Venegas-Martínez, F., & Palafox-Roca, A. O. (2017). Impact of Energy Consumption on Economic Growth in Major Organization for Economic Cooperation and Development Economies (1977-2014): A Panel Data Approach. International Journal of Energy Economics and Policy, 7(72), 18–25.
  • Abdouli, M., & Hammami, S. (2017). The Impact of FDI Inflows and Environmental Quality on Economic Growth: an Empirical Study for the MENA Countries. Journal of the Knowledge Economy, 8(1), 254–278.
  • Aboagye, S. (2015). Towards Economic Growth and Development in Sub-Saharan Africa: Does That Mar the Environment? The Department of Economics, University of Ghana, Accra, 1–17.
  • Alam, M. S. and S. J. H. S. and N. A. and S. (2016). Financial development and environmental quality: The way forward. In MPRA Working Paper (Issue 46733).
  • Ali, M. (2018). Environmental Degradation in France : The Effects of FDI , Financial Development , and Energy Innovations. In MPRA Working Paper (Issue 26 July).
  • Awad, A., & Warsame, M. H. (2017). Climate Changes in Africa : Does Economic Growth Matter ? A Semi-parametric Approach. International Journal of Energy Economics and Policy, 7(1), 1–8.
  • Beck, T. (2013). Finance for development : A research agenda. In Development Dilemmas (Issue September, pp. 4–27).
  • Bond, C. A., Burger, N., Nguyen, P., & Justice, R. (2015). Implications of Australian Economic Growth for Environmental Sustainability.
  • Brock, W. A., & Taylor, M. S. (2010). The Green Solow model. Journal of Economic Growth, 15(2), 127–153.
  • Carillo, F., & Maietta, O. W. (2014). The Relationship between Economic Growth and Environmental Quality : The contributions of economic structure and agricultural policies. New Medit N., 13(1), 15–21.
  • Chakraborty, B., & Gupta, M. R. (2014). Human Capital Accumulation, Environmental Quality, Taxation and Endogenous Growth. In Economic Research Unit, Indian Statistical Institute. (pp. 193–215).
  • Fakher, H., & Abedi, Z. (2017). Relationship between Environmental Quality and Economic Growth in Developing Countries ( based on Environmental Performance Index ). Environmental Energy and Economic Research, 1(3), 299–310.
  • Galeotti, M. (2007). Economic growth and the quality of the environment: Taking stock. Environment, Development and Sustainability, 9(4), 427–454.
  • Goetz, S. J., Debertin, D. L., & Pagoulatos, A. (2016). Human Capital, Income, and Environmental Quality: A State-Level Analysis. Agricultural and Resource Economics Review, 27(02), 200–208.
  • Grossman G.M. and A.B. Krueger (1995), Economic growth and the environment, The Quarterly Journal of Economics 110, 353-377.
  • Harrison, G. S. E. and A. E. (1997). Moving to Greener Pastures? Multinationals and the Pollution Haven Hypothesis 1(January), 1-18.
  • Hilaire, N., & Kaffo Fotio, H. (2014). Effects of Economic Growth on CO2 Emissions in the “Congo Basin” Countries. International Journal of Economics and Finance, 7(1), 107–117.
  • Hundie, S. K. (2018). Modelling Energy Consumption , Carbon Dioxide Emissions and Economic Growth Nexus in Ethiopia : Evidence from Cointegration and Causality Analysis. Turkish Journal of Agriculture - Food Science and Technology Available, 6(6), 699–709.
  • Ioannis Kostakis, S. L. and E. S. (2011). Foreign Direct Investment and Environmental Degradation: Further evidence from Brazil and Singapore. In MPRA Working Paper (Issue 46733).
  • Jesus Clemente, Antonio Montanes, M. R. (1998). Testing for a unit root in variables with a double change in the mean. Economics Letters 59(October), 175–182.
  • Johansen, S. (1988). Statistical Analisis of Cointegration Vectors. Journal Of Economic Dynamics and Control, 12(September), 231–254.
  • Joysri, A. (2009). Fdi , Growth and the Environment : Evidence From India on Co2 Emission During the Last Two Decades. Journal of Economic Development, 34(1), 43–58.
  • Kuznets, S. (1955). Economic Growth and Income Inequality. The American Economic Review, 45(1).
  • Lee, J., & Strazicich, M. C. (2003). Minimum Lagrange Multiple Unit Root Test With Two Structural Breaks. Review of Economics and Statistics, 85(4), 1082–1089.
  • Levine, R. (1997). Financial development and economic growth: views and agenda. Journal of Economic Literature, XXXV(June), 688–726.
  • Levine, R. (2005). Chapter 12 Finance and Growth: Theory and Evidence. In Handbook of Economic Growth (Vol. 1, Issue SUPPL. PART A, pp. 865–934).
  • Li, S., Zhang, J., & Ma, Y. (2015). Financial development, environmental quality and economic growth. Sustainability (Switzerland), 7(7), 9395–9416.
  • Libanda, J., Marshall, D., & Nyasa, L. (2017). The Effect of Foreign Direct Investment on Economic Growth of Developing Countries: The Case of Zambia. British Journal of Economics, Management & Trade, 16(2), 1–15.
  • Moghadam, H. E., & Lotfalipour, M. R. (2015). Impact of Financial Development on the Environmental Quality in Iran. Chinese Business Review, 13(09), 537–551.
  • Mugableh, M. I. (2013). Analysing the CO2 Emissions Function in Malaysia: Autoregressive Distributed Lag Approach. Procedia Economics and Finance, 5(13), 571–580.
  • Munir, S., Chaudhry, I. S., & Akhtar, M. H. (2013). Financial Liberalization and Economic Growth in Pakistan: Empirical Evidence from Co-integration Analysis. In Pakistan Journal of Social Sciences 33(2), 227–241.
  • N. Agarwal, R. (2012). Economic Globalisation, Growth and the Environment: Testing of Environment Kuznet Curve Hypothesis for Malaysia. Journal of Business & Financial Affairs, 01(02), 1–8.
  • Oxfam. (2020). Britons reach Africans’ annual carbon emissions in just two weeks. https://www.theguardian.com/environment/2020
  • Petrosillo, I., Zurlini, G., Corlianò, M. E., Zaccarelli, N., & Dadamo, M. (2007). Tourist perception of recreational environment and management in a marine protected area. Landscape and Urban Planning, 79(1), 29–37.
  • Phimphanthavong, H. (2013). The Impacts of Economic Growth on Environmental Conditions in Laos. Int.J.Buss.Mgt.Eco.Res., 4(5), 766–774.
  • Phuong, N. D., Thi, L., & Tuyen, M. (2018). The Relationship between Foreign Direct Investment, Economic Growth and Environmental Pollution in Vietnam : An Autoregressive Distributed Lags Approach. International Journal of Energy Economics and Policy, 8(5), 138–145.
  • Roth, S. (2017). Air pollution, educational achievements, and human capital formation. In IZA World of Labor (Issue August).
  • Saidi, K., & Hammami, S. (2015). The impact of CO2 emissions and economic growth on energy consumption in 58 countries. Energy Reports, 1, 62–70.
  • Saud, S., Chen, S., Danish, & Haseeb, A. (2019). Impact of financial development and economic growth on environmental quality: an empirical analysis from Belt and Road Initiative (BRI) countries. Environmental Science and Pollution Research, 26(3), 2253–2269.
  • Sehrawat, M., Giri, A. K., & Mohapatra, G. (2015). The impact of financial development, economic growth and energy consumption on environmental degradation: Evidence from India. Management of Environmental Quality: An International Journal, 26(5), 666–682.
  • Selden T.M. and D.S. Song (1994), Environmental quality and development: is there a Kuznets curve for air pollution emissions?, Journal of Environmental Economics & Management 27, 147-162.
  • Soren Johansen, K. J. (1990). Maximum liklihood Estimation and Inference on Cointegration-witth Applications to the Demand for money. Oxford Bulletin of Economics and Statistics, 52 (2), 0305-9049.
  • The World Bank Report. (2009). The World Bank Annual Report. In The World Bank Annual Report.
  • Torras, M., & Boyce, J. K. (1998). Income, inequality, and pollution: A reassessment of the environmental Kuznets curve. Ecological Economics, 25(2), 147–160.
  • Valadez, G. V., & Hu, J. (2016). Relationship between the Environment and Economic Growth in China via Exports : A Perspective of Ecological Impact ( 2000-2014 ). Journal of Environmental Protection, 7(2152–2219), 1670–1692
There are 45 citations in total.

Details

Primary Language English
Subjects Finance, Business Administration
Journal Section Articles
Authors

Aboubakary Nulambeh Ndzembanteh This is me 0000-0002-4039-6690

Kadir Yasin Eryiğit This is me 0000-0001-6857-7402

Publication Date September 30, 2020
Published in Issue Year 2020 Volume: 9 Issue: 3

Cite

APA Ndzembanteh, A. N., & Eryiğit, K. Y. (2020). THE ROLE OF FINANCIAL DEVELOPMENT, EDUCATION AND ECONOMIC GROWTH ON ENVIRONMENTAL QUALITY IN CAMEROON. Journal of Business Economics and Finance, 9(3), 232-244. https://doi.org/10.17261/Pressacademia.2020.1299

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