Financial development and green technological innovation: a case of GCC countries
International Journal of Innovation Science
ISSN: 1757-2223
Article publication date: 9 January 2024
Abstract
Purpose
The purpose of this study is to check the impact of financial development on green technological innovation (GTI).
Design/methodology/approach
The sample size includes the 20-year (2001–2020) financial statistics of six Gulf Cooperation Council (GCC) region countries. To check the proposed relationship, this research uses a series of econometric models including fixed effect, fully modified ordinary least square and robust least square models.
Findings
The statistical results imply that financial sector development has a direct significant impact on GTI. A developed financial sector can uplift green technological development by offering more loans to industrial sectors and the import of modern technology. The statistical analysis further reveals the positive impact of gross domestic product (GDP), foreign direct investment inflow and trade volume while the negative impact of resources contribution on GTI.
Practical implications
The findings suggest key policy suggestions regarding the role of the financial sector in promoting GTI in the GCC region.
Originality/value
The novelty of this study lies in its examination of the relationship between FD and GTI in the GCC countries, a region with its unique economic and environmental dynamics.
Keywords
Acknowledgements
Ethical statement: The authors hereby confirmed that the paper is solely submitted to this journal and is not under publication process in any other journal.
Disclosure of potential conflicts of interest: The corresponding author hereby declare on the behalf of the co-authors that they have no conflicts of interest.
Informed consent: The authors hereby grant the consent and acknowledge that paper should be sent for peer review or any other publication process required by journal.
Data availability statement: Data that support the findings of this study available at public domains named World Development Indicators The World Bank and OECD Statistics.
Funding: The authors received no direct funding for the conduct of research.
Citation
Farooq, U., Tabash, M.I. and Ahmed, A. (2024), "Financial development and green technological innovation: a case of GCC countries", International Journal of Innovation Science, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/IJIS-09-2023-0206
Publisher
:Emerald Publishing Limited
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