TY - JOUR
T1 - Capital flow and environmental quality at crossroads
T2 - designing a sustainable policy framework for the newly industrialized countries
AU - Destek, Mehmet Akif
AU - Sinha, Avik
AU - Ozsoy, Ferda Nakipoglu
AU - Zafar, Muhammad Wasif
N1 - Publisher Copyright:
© 2023, The Author(s), under exclusive licence to Springer-Verlag GmbH Germany, part of Springer Nature.
PY - 2023/7
Y1 - 2023/7
N2 - It is extremely difficult for emerging economies to achieve the Sustainable Development Goals (SDGs), and in order to close this policy gap, a comprehensive policy framework is needed. The purpose of this research is to determine the proportional impacts of domestic and foreign capital to environmental degradation in newly industrialized nations (NICs). For this reason, panel data methodology is used to evaluate, for the years 1991 to 2018, how the ecological footprint is affected by stock market capitalization, foreign direct investment, economic growth, urbanization, and energy intensity. Using the squared terms of stock market capitalization and foreign direct investment, respectively, it is also looked at whether domestic and foreign capital may have non-linear effects on the environment. According to the empirical findings, whereas local capital growth worsens the environment, increasing international capital prevents environmental degradation. There is an inverted U-shaped link between domestic capital and environmental degradation in the event of non-linearity, but foreign capital has a monotonically declining effect on environmental degradation. The study outcomes are utilized to design a policy framework to address the objectives of SDG 7, SDG 11, and SDG 13.
AB - It is extremely difficult for emerging economies to achieve the Sustainable Development Goals (SDGs), and in order to close this policy gap, a comprehensive policy framework is needed. The purpose of this research is to determine the proportional impacts of domestic and foreign capital to environmental degradation in newly industrialized nations (NICs). For this reason, panel data methodology is used to evaluate, for the years 1991 to 2018, how the ecological footprint is affected by stock market capitalization, foreign direct investment, economic growth, urbanization, and energy intensity. Using the squared terms of stock market capitalization and foreign direct investment, respectively, it is also looked at whether domestic and foreign capital may have non-linear effects on the environment. According to the empirical findings, whereas local capital growth worsens the environment, increasing international capital prevents environmental degradation. There is an inverted U-shaped link between domestic capital and environmental degradation in the event of non-linearity, but foreign capital has a monotonically declining effect on environmental degradation. The study outcomes are utilized to design a policy framework to address the objectives of SDG 7, SDG 11, and SDG 13.
KW - Ecological footprint
KW - Environmental degradation
KW - Foreign direct investment
KW - Stock market
UR - http://www.scopus.com/inward/record.url?scp=85160427796&partnerID=8YFLogxK
U2 - 10.1007/s11356-023-27794-5
DO - 10.1007/s11356-023-27794-5
M3 - Article
C2 - 37248350
AN - SCOPUS:85160427796
SN - 0944-1344
VL - 30
SP - 76746
EP - 76759
JO - Environmental Science and Pollution Research
JF - Environmental Science and Pollution Research
IS - 31
ER -