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The development of green financial products like green bonds and industry financing has gained momentum, showing positive impacts on sustainable economic development, renewable energy investment, and greenhouse gas emission reduction. As the research problem is inadequately explored, this dissertation aims to fill the research gap to evaluate the impacts of green finance on economic development. Furthermore, this study assesses the differences between Asian and non-Asian economies in the impacts of green finance on economic development. Two empirical measures are analyzed in this study.Green finance is measured with the Global Green Finance Index (GGFI), a composite index that captures over 100 instrumental variables, covering the business environment, human capital, infrastructure, and sustainability aspects of a financial center. Growth rate of gross domestic product (GDP) per capita reflects economic development. The dataset encompasses 83 international financial centers from 2018 to 2022. The regression model finds a significant negative relationship between growth rates of GGFI and GDP per capita in the full sample, the Asian subgroup, and the non-Asian subgroup. GGFI growth is confirmed to have Granger caused GDP per capita growth, but GDP per capita growth did not Granger cause GGFI growth. Combined with the insights of the previous studies, this study justifies the findings as a short-term negative impact of green finance on economic growth. However, the Asian region, with many emerging economies, could transition faster, so the regression derives a less negative coefficients for Asian financial centers. The policy implication 5 is that continued government support to improve the effectiveness of green finance is necessary for the long-term benefit of green finance to be fully realized
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After the Covid-19 Pandemic crisis in international economic relations it became evident that climate-smart aspects should be considered when re-establishing a new international trade order. International organizations have proclaimed that this momentum should be used to include climate-smart trade and investment provisions to enable sustainable development. It has been acknowledged that trade has an important role to play in the global response to climate change, providing economies with tools to draw on in their efforts to mitigate climate change and to adapt to its consequences. In this paper we focus the analysis on investigating the digital and sustainable component of trade facilitation measures applied in Western Balkans countries. To evaluate the importance of trade facilitation measures and their digital and sustainable components we apply standard gravity model with the data from UN Global Survey on digital and sustainable trade facilitation. The results show that trade facilitation measures are important for improving and increasing trade among the Western Balkans countries. Especially, measures connected to improving transparency procedures in trade and measures for alleviating trade formalities are most significant for increasing bilateral trade among Western Balkans countries. With a lower level of importance are the measures for improving cross-border paperless trade between these countries.
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This book is a compilation of the best papers presented at the APEF 2019 conference which was held on 25th and 26th July 2019 at the Grand Copthorne Waterfront in Singapore. With a great number of submissions, it presents the latest research findings in economics and finance and discusses relevant issues in today's world. The book is a useful resource for readers who want access to economics, finance and business research focusing on the Asia-Pacific region.
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The degree of economic integration in the Guangdong-Hong Kong-Macau Greater Bay Area (GBA), as reflected in the mobility of trade and capital flows, has been strengthened by free trade agreements, but obstacles including border effects, capital controls, differences of exchange rate systems and inadequate cross-regional coordination remain. Digital renminbi (e-CNY) has been tested in Shenzhen, a core GBA city since April 2020. If e-CNY is adopted in the GBA, the area will effectively become a single currency zone. Whether the GBA constitutes an “optimum currency area” (OCA) depends on its degree of economic integration. This paper computes real interest rate differential (RID), uncovered interest rate differential (UID) and deviation from purchasing power parity (PPD) of each regional pair based on data of interest rates, exchange rates and price indexes from 2016M2 to 2022M7. All UID, PPD and RID series have means within about 1 percent point from 0, indicating high degrees of financial integration, real integration and economic integration. With the exception of Guangdong-Macau RID, all series are stationary, implying mean-reverting behavior. Hence, the parities are expected to hold both in the short run and in the long run, which is a condition for an OCA in the GBA. Furthermore, the regression analysis finds that the test launch of e-CNY in Shenzhen (adjusted for the COVID-19 outbreak) has significant impacts on all RIDs, Guangdong-Macau PPD and Hong Kong-Macau PPD. With merely two and a half years of test launch, the introduction of e-CNY already had impacts on overall economic integration in the GBA.
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