THE ROLE OF ECONOMIC GROWTH, FINANCIAL DEVELOPMENT, AND FINANCIAL LIBERALIZATION ON THE ENVIRONMENTAL QUALITY: AN EMPIRICAL ANALYSIS FROM ASEAN COUNTRIES

Abstract

The basic aim of the present study is to examine the role of economic growth (EG), financial development (FD) and financial liberalization (FL) on the environmental quality of ASEAN countries. The data were extracted from the World Development Indicator (WDI) and ASEAN States Data Portal for the year 2001 to 2018. Generalized Methods of Moment (GMM) estimator was used to test the hypotheses of the study.The results highlighted that EG and financial development have positive link with the environmental quality of the ASEAN countries. The findings also exposed that financial liberalization has negative link with the environmental quality of the ASEAN countries. The current study also recommended to the policymakers that they should emphasize on the improvement of the EG and FD that are necessary for the high-quality environment of the ASEAN counties. This study also suggested to the legislators that they should control the FL that has adverse effect on the environmental quality of the ASEAN countries.