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Against the backdrop of persistent climate change and deteriorating environmental pressure, this study integrates financialization, human capital, and energy security risks to provide new insight into decoupling carbon emissions from economic growth. The study employs annual panel data on the BRICS (Brazil, Russia, India, China, and South Africa) countries for the period of 1990–2019. The research employs the C‐S ARDL approach and the Tapio decoupling index to assess the decoupling status of the BRICS countries. In addition, this study applies the recently developed Juodis, Karavias, and Sarafidis Granger noncausality test for robustness. The findings offer compelling evidence of an inverted U‐shaped curve, aligning with the environmental Kuznets curve hypothesis. Consequently, the results confirm the decoupling of carbon emissions in the BRICS nations. Furthermore, the Tapio decoupling elasticity index confirms different carbon decoupling statuses among the BRICS. The results show expansive negative decoupling for Brazil, weak decoupling for India and China, and strong decoupling for Russia and South Africa. In terms of policy, achieving strong decoupling status in the BRICS requires that financial institutions' lending and investing strategies align with environmental objectives. In addition, human capital development policies such as increased spending on education should be vigorously pursued to empower people to lead sustainable development projects. [ABSTRACT FROM AUTHOR]

Financial institutions operating in a stable financial system seem to be willing to support the realization of the sustainable development goals (SDGs). This view assumes that financial stability is crucial for sustainable development. We investigate the effect of financial stability on sustainable development. We use a unique financial stability index, sustainable development index and four SDG indicators. We analyse 26 countries from 2011 to 2018 using the system GMM method. The findings of the sustainable development index analysis show that financial stability has a significant effect on the level of sustainable development and the effect is negative in Asian countries. European and Asian countries have a high sustainable development index compared to African countries. The result of the individual SDG analyses show that financial stability has a significant effect on SDG3. Financial stability has a negative effect on SDG10 in Asian countries and a negative effect on SDG3 during periods of economic prosperity. Financial stability has a positive effect on SDG3 and SDG7 in countries where the banking system have high capital buffer. The results show that the effect of financial stability on sustainable development depends on how sustainable development is measured. [ABSTRACT FROM AUTHOR]

The economies of the African countries are gradually expanding, but they mostly depend on fossil fuels for energy use. This exacerbates environmental damage, which renders the continent susceptible to the effects of climate change. Therefore, this study aims to examine the integrating role of renewable energy transition and governance quality in the income–environmental quality nexus in Africa. The study applies second‐generation econometric techniques on annual panel data of 34 African countries covering the period 1996–2018. The fixed effect ordinary least square (OLS‐FE), feasible generalized least squares (FGLS), system generalized method of moments (SYS‐GMM) and cross‐sectionally augmented ARDL (CS‐ARDL) are applied to both the baseline model and the interactive models. The results provide diverse findings. In the baseline models, the study verifies the increasing effect of income on carbon dioxide (CO2) emissions, which continues to dampen environmental quality. Regarding the interaction effect models, the findings show that the interactive term of renewable energy transition and income per capita has a significant negative effect on CO2 emission levels which implies that renewable energy transition ensures green growth. Further, the results indicate that the interactive terms of governance quality have significant reducing effect on emission levels. In terms of policy, achieving green growth necessitates increased renewable energy deployment and policies that will enhance governance effectiveness towards enforcing environmental regulations. [ABSTRACT FROM AUTHOR]

Purpose: This paper investigates the effect of abnormal increase in credit supply on economic growth in Nigeria after controlling for the quality of the legal system, size of central bank asset, banking sector cost efficiency and bank insolvency risk. Design/methodology/approach: The authors employ the generalised method of moments (GMM) regression methodology to estimate the effect of abnormal increase in credit supply on two measures of economic growth in Nigeria. Findings: The abnormal increase in credit supply has a significant effect on economic growth. Abnormal increase in credit supply increases real gross domestic product (GDP) growth. The abnormal increase in credit supply decreases real GDP per capita during the global financial crisis. The abnormal increase in domestic credit to the private sector has a significant positive effect on GDP per capita when there is strong legal system quality in Nigeria. In contrast, the abnormal increase in domestic credit to the private sector has a significant negative effect on real GDP growth when there is strong legal system quality in Nigeria. Practical implications: The abnormal increase in credit supply is ineffective in increasing GDP per capita during crisis years. Policymakers should be cautious in pressuring financial institutions to release an abnormally large amount of credit into the economy particularly during financial crises. Rather, policymakers should encourage financial institutions to supply credit in a sustained manner – not in an abnormal manner –and in a way that supports growth. Originality/value: The present study contributes to the literature by analysing the effect of abnormal increase in credit supply on economic growth in a developing country context. [ABSTRACT FROM AUTHOR]

The study investigates the effect of stock market volatility on economic growth in Nigeria, accounting for the moderating role globalization (economic, social and political globalization) from 1981 to 2018. Applying the recently developed unit root with structural breaks by Lee and Strazicich test, the Bayer–Hancks and Johansen cointegration tests, the results show that all the variables (real gross domestic product, stock market returns and globalization index) are integrated of order one, and are also cointegrated, suggesting evidence of long‐run relationship. Further, the results of the GARCH(1,1) model indicate that the effect of shocks to SMR volatility are very likely to be permanent than temporary. Regarding the nexus between stock market return and economic growth, the study reveals a positive, inelastic but statistically insignificant effect of stock market returns on economic growth in Nigeria. Also, globalization has a positive, elastic and statistically significant effect on economic growth in Nigeria. The study therefore, recommends collaborations on policy measures that would stabilize and reposition the stock market to continue playing its critical role of galvanizing funds for investment and stimulating economic growth and as well strengthens globalization related policies to achieve economic growth. [ABSTRACT FROM AUTHOR]

Given the importance of output growth in Nigeria and the need for monetary policy decisions to be guided by the knowledge of the asymmetric effects of positive and negative monetary policy shocks, this study investigates the asymmetric effects of monetary policy shocks on output growth in Nigeria using quarterly data from 1981Q1 to 2018Q4. The study employs the recently developed Lee and Strazicich unit root test with structural breaks, Nonlinear ARDL, and the Hatemi‐J causality tests. The result reveals the presence of long‐run and short‐run asymmetries in the effect of monetary policy shocks on output growth in Nigeria. The results of the long‐run effect show that both positive and negative monetary policy rate shocks have positive, elastic, and statistically significant effect on output growth. For the short‐run, the results indicate that the effect of negative monetary policy shocks dominate the effects of positive monetary policy rate shocks, while the effect of positive money supply shocks dominates the effect of negative money supply shocks. Furthermore, the study finds evidence in support of the expansionary monetary policy in the long‐run. Hence, the recommendations for expansionary monetary policy decision to enhance output growth. [ABSTRACT FROM AUTHOR]

This study incorporates energy prices and tourism development into the standard purchasing power parity doctrine to investigate exchange rate pass‐through to restaurant and hotel prices in the United States over the period 2001:Q4 to 2017:Q4. We apply the multiple structural breaks cointegration test and flexible autoregressive distributed lag (ARDL) method. Our empirical results provide evidence that exchange rate appreciation reduces restaurant and hotel prices while an increase in energy prices and tourism development causes the prices of restaurant and hotel to rise. However, the pass‐through of exchange rate, energy prices, and tourism development is incomplete in both the long‐ and short‐run with the long‐run pass‐through having a stronger effect. Furthermore, the causality results show that restaurant and hotel prices have predictive power for exchange rate. Causality between restaurant and hotel prices and tourism development has a feedback effect. We also find that exchange rate Granger causes not only energy prices but tourism development while tourism development causes energy prices. The policy implications for these results are carefully outlined in the study. [ABSTRACT FROM AUTHOR]