Stock market development and environmental quality in EU member countries: A dynamic heterogeneous approach

Stock market development and environmental quality in EU member countries: A dynamic heterogeneous approach

Mohammed Musah

Studies on the determinants of environmental quality in the European Union (EU) are plentiful. However, to the best of my knowledge, there has been no research on the linkage between stock market development and environmental quality in the EU, while controlling for natural resource rents, trade openness and energy consumption at the same time. This study aided in filling the above gap using a panel data of 17 EU member countries from 1995 to 2014. In attaining the above goal, second and third generation econometric techniques that control for slope heterogeneity, cross-sectional dependence and structural breaks among others were employed for the analysis. From the cross-sectional dependence test, there were correlations in the residual terms. Also, the heterogeneity test affirmed the slope parameters to be heterogeneous in nature. Moreover, the unit root tests confirmed the series to be stationary …

Springer Netherlands

2023

https://scholar.google.com/citations?view_op=view_citation&hl=en&user=-U-tBVYAAAAJ&citation_for_view=-U-tBVYAAAAJ:UebtZRa9Y70C

English