Financial Inclusion, Environmental Quality, and Economic Development in Asian Economies: A Panel Data Analysis

Abstract

The objective of this study is to explore the effect of Financial Inclusion and Environmental Quality on Economic Development of some selected Asian economies. For this purpose, panel data of some Asian economies has been taken from 2004 to 2023 from the World Development Indicators. The results are estimated by using the Fixed Effect Model and Random Effect Model, descriptive statistics, correlation, and causality analysis. The results of Fixed Effect model reveal that GDP is significantly increased by Internet Subscribers & Mobile users (Financial Inclusion variables), FDI, Government expenditure and Carbon dioxide emission while GDP is insignificantly increased by energy use in the Asian economies. The Fixed Effect model suggests policy implications for Asian economies, focusing on digital connectivity, FDI attraction, targeted public expenditure, sustainable growth practices, and energy efficiency.