Investigating the non-linear relationship between globalization, economic growth, financial development and ecological footprint in Iran
Subject Areas : Financial Economics
maryam mohamadiniya
1
,
غلامرضا عباسی
2
,
بیژن باصری
3
,
رضا رحیمی
4
1 - Doctoral student of Economic Development, Faculty of Economic Sciences, Central Tehran Islamic Azad University
2 -
3 - عضو هیات علمی دانشگاه آزاد واحد تهران مرکزی
4 - هیات علمی دانشگاه ازاداسلامی واحدتهران مرکزدانشکده اقتصادوحسابداری
Keywords: Globalization, economic growth, financial development, ecological footprint, NARDL nonlinear model,
Abstract :
The present study investigates the nonlinear relationship between globalization, economic growth, financial development and ecological footprint in Iran during the period of 1360-1400 by using the NARDL nonlinear model.According to the estimation results of NARDL nonlinear model; The null hypothesis based on the equality of the coefficients of positive and negative shocks of globalization and financial development fluctuations cannot be rejected.Therefore, the effect of these positive and negative shocks on the ecological footprint is not asymmetric in the long term. But for the variable of economic growth, this effect has been asymmetric, in the sense that positive and negative shocks of economic growth do not have the same and equal effects, even in the opposite direction, on the ecological footprint, and therefore this relationship is a non-linear relationship.An increase in economic growth with an increase in the level of GDP will lead to an increase in production and an increase in exports, which, while requiring an increase in energy, affects the ecological footprint.On the other hand, based on the results of the NARDL method, the impact of financial development on the ecological footprint has been positive and significant.The increase in the financial development index leads to an increase in the production of goods as well as the provision of services, and as a result, more energy and raw materials are consumed, which will have a positive effect on the ecological footprint index.