Green investment and its influence on green growth in high polluted Asian economies: Do financial markets and institutions matter?

The notion of green growth has occurred as a leading policy response to environmental pollution. This study explores the dynamic impacts of green investment, financial institutions & markets on green growth based on a time series data set comprised of four high polluted Asian countries from 1995 to 2019. We found several important short and long-run results from the ARDL bounds testing approach. First, green investment has a positive long-run effect on green growth in China, India, and Russia. Second, financial institutions have positive long-run effects on green growth in China, India, and Japan; but financial markets improve only in China and Russia. The findings also propose that internet users and R&D foster green growth in mostly high polluted Asian countries. Thus, our findings offer some implications for high polluted Asian countries to stimulate green growth in the future.