FINANCIAL DEVELOPMENT AND ENVIRONMENTAL PERFORMANCE: EVIDENCE FROM BRICS-T

Authors : Mehmet Sinan Çelik, Bekir Zengin

Pages : 37-49

View : 78 | Download : 47

Publication Date : 2025-04-28

Article Type : Research Paper

Abstract :The development process is a whole that encompasses economic growth as well as social welfare, environmental sustainability and quality of life. The financial system plays an important role in this development process. The financial system plays an important role in the efficient allocation of resources, promotion of investments and creation of an environment of trust among economic actors. The financial system serves as the cornerstone of development, and improvements in its size, efficiency and stability lead to increased welfare. Especially when financial inclusion gains importance, access to financial services by low-income groups becomes easier, thus contributing to reducing income inequality and increasing social welfare. On the other hand, improving national welfare can also lead to better access to clean water and sanitation. This study investigates panel data from BRICS-T countries (Brazil, Russia, India, China, South Africa, and Türkiye) covering the period 2000 to 2022. The findings reveal that financial development positively and significantly affects access to clean water and sanitation. This suggests that in countries with high financial development, allocating resources for infrastructure projects is more efficient and effective. Conversely, the substantial impact of environmental policies on access to clean water and sanitation underscores the pivotal role of environment-oriented regulations in achieving sustainable development goals. On the other hand, the finding that public expenditures do not significantly affect access to sanitation indicates that these expenditures need to be directed more effectively.
Keywords : Finansal Kalkınma, Çevresel Performans, Temiz Suya Erişim, Sanitasyona Erişim.

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