Environmental policies stringency and cross-border banking: The mediating role of green industries

IF 7.4 2区经济学 Q1 BUSINESS, FINANCE

Finance Research Letters Pub Date : 2025-01-01 DOI:10.1016/j.frl.2024.106734

Subroto Rapih, Jorge Tavares Borges, Susantiningrum

引用次数: 0

Abstract

This study examines the impact of domestic environmental policy stringency (EPS) on cross-border bank inflows across 33 countries from 2000 to 2020. Using panel data estimation models, the results reveal that higher levels of EPS are associated with increased cross-border bank inflows. Furthermore, non-market-based EPS shows a stronger effect in attracting these inflows compared to market-based policies. Additionally, green industries in host countries partially mediate the relationship between EPS and cross-border bank inflows, suggesting that stringent EPS fosters a favorable investment climate through the promotion of green sectors. These findings highlight the crucial role of environmental regulations in shaping financial flows and resource distribution in the banking sector, offering valuable insights for policymakers aiming to attract sustainable investment.

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来源期刊

Finance Research Letters BUSINESS, FINANCE-

CiteScore

11.10

自引率

14.40%

发文量

863

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