Impact of Financial Development and Exports on Industrial Pollution in Middle-Income Countries

Areesha Aziz; Hafiz Muhammad Abubakar Siddique; Sumaira; Adiqa Kausar. Kiani

Authors

Areesha Aziz Department of Business and Commerce, GIFT University, Gujranwala, Pakistan Author
Hafiz Muhammad Abubakar Siddique Department of Business and Commerce, GIFT University, Gujranwala, Pakistan Author
Sumaira Department of Business and Commerce, GIFT University, Gujranwala, Pakistan Author
Adiqa Kausar. Kiani National Yunlin University of Science and Technology Taiwan Author

Keywords:

Industrial Pollution, Exports, Financial development, MICs

Abstract

In recent decades, undesirable environmental changes have attracted worldwide attention. This study empirically examines the impacts of financial development and exports on industrial pollution by incorporating the role of energy use, capital, and urban population. The data from 74 Middle-Income Countries (MICs) covers the period from 1990 to 2019. In this study, panel OLS, fixed effect model, random effect model, and generalized method of moments (GMM) is applied. The empirical findings revealed that financial development and exports are the contributing factors to industrial pollution in MICs. This study suggests integrating some guidelines to reduce pollution without compromising economic growth. It is also recommended to reduce the consumption of non-renewable energy resources and to reduce the exports of goods that cause pollution during manufacturing.