Does good governance intensify the impact of energy finance on globalization? Evidence from BRICS nations

In the context of globalization, good governance and energy financing are essential for sustainable and inclusive economic growth, particularly in emerging countries, as both are necessary for optimizing globalization. Existing research investigated the governance-energy-environment nexus; however,...

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Main Authors: Md. Mominur Rahman, Md. Golam Faruque, Md. Emran Hossain
Format: Article
Language:English
Published: Elsevier 2024-12-01
Series:Research in Globalization
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Online Access:http://www.sciencedirect.com/science/article/pii/S2590051X2400073X
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author Md. Mominur Rahman
Md. Golam Faruque
Md. Emran Hossain
author_facet Md. Mominur Rahman
Md. Golam Faruque
Md. Emran Hossain
author_sort Md. Mominur Rahman
collection DOAJ
description In the context of globalization, good governance and energy financing are essential for sustainable and inclusive economic growth, particularly in emerging countries, as both are necessary for optimizing globalization. Existing research investigated the governance-energy-environment nexus; however, insufficient focus has been directed on the good governance-energy finance-globalization nexus in the BRICS countries. Hence, this study investigates the impact of energy finance and governance on globalization in BRICS countries, focusing on how energy finance, both fossil fuel and renewable, influences global integration. It examines the direct effect of governance on globalization and explores the moderating role of governance in strengthening the relationship between energy finance and globalization. Using advanced econometric models, including fully modified ordinary least square, augmented mean group, common correlated effects mean group, dynamic ordinary least square, two-stage least square, and generalized methods of the moment, the study provides empirical evidence on the significance of energy finance in driving globalization, with fossil fuel energy finance showing a negative impact and renewable energy finance a positive one. The results highlight the crucial role of good governance in enhancing the effectiveness of energy finance, suggesting that stronger governance frameworks can maximize the benefits of energy investments for globalization. This study provides novel insights by examining the moderating impacts of governance quality on the links between energy financing and globalization underpinning institutional theory within the BRICS nations. The findings highlight the necessity of improving governance frameworks to facilitate sustainable energy investments and globalization in BRICS states and other comparable countries, as effective governance and energy finance are both critical issues in the globalization discourse.
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spelling doaj-art-17a3ca4b62d1405d9144f9ca97cc54232024-12-19T10:56:59ZengElsevierResearch in Globalization2590-051X2024-12-019100264Does good governance intensify the impact of energy finance on globalization? Evidence from BRICS nationsMd. Mominur Rahman0Md. Golam Faruque1Md. Emran Hossain2Bangladesh Institute of Governance and Management, University of Dhaka (Affiliated), Dhaka 1207, BangladeshBangladesh Institute of Governance and Management, University of Dhaka (Affiliated), Dhaka 1207, BangladeshDepartment of Agricultural Finance and Banking, Bangladesh Agricultural University, Mymensingh 2202, Bangladesh; Jadara Research Center, Jadara University, Irbid 21110, Jordan; Corresponding author.In the context of globalization, good governance and energy financing are essential for sustainable and inclusive economic growth, particularly in emerging countries, as both are necessary for optimizing globalization. Existing research investigated the governance-energy-environment nexus; however, insufficient focus has been directed on the good governance-energy finance-globalization nexus in the BRICS countries. Hence, this study investigates the impact of energy finance and governance on globalization in BRICS countries, focusing on how energy finance, both fossil fuel and renewable, influences global integration. It examines the direct effect of governance on globalization and explores the moderating role of governance in strengthening the relationship between energy finance and globalization. Using advanced econometric models, including fully modified ordinary least square, augmented mean group, common correlated effects mean group, dynamic ordinary least square, two-stage least square, and generalized methods of the moment, the study provides empirical evidence on the significance of energy finance in driving globalization, with fossil fuel energy finance showing a negative impact and renewable energy finance a positive one. The results highlight the crucial role of good governance in enhancing the effectiveness of energy finance, suggesting that stronger governance frameworks can maximize the benefits of energy investments for globalization. This study provides novel insights by examining the moderating impacts of governance quality on the links between energy financing and globalization underpinning institutional theory within the BRICS nations. The findings highlight the necessity of improving governance frameworks to facilitate sustainable energy investments and globalization in BRICS states and other comparable countries, as effective governance and energy finance are both critical issues in the globalization discourse.http://www.sciencedirect.com/science/article/pii/S2590051X2400073XEnergy financeGovernanceGlobalizationRenewable energy
spellingShingle Md. Mominur Rahman
Md. Golam Faruque
Md. Emran Hossain
Does good governance intensify the impact of energy finance on globalization? Evidence from BRICS nations
Research in Globalization
Energy finance
Governance
Globalization
Renewable energy
title Does good governance intensify the impact of energy finance on globalization? Evidence from BRICS nations
title_full Does good governance intensify the impact of energy finance on globalization? Evidence from BRICS nations
title_fullStr Does good governance intensify the impact of energy finance on globalization? Evidence from BRICS nations
title_full_unstemmed Does good governance intensify the impact of energy finance on globalization? Evidence from BRICS nations
title_short Does good governance intensify the impact of energy finance on globalization? Evidence from BRICS nations
title_sort does good governance intensify the impact of energy finance on globalization evidence from brics nations
topic Energy finance
Governance
Globalization
Renewable energy
url http://www.sciencedirect.com/science/article/pii/S2590051X2400073X
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AT mdemranhossain doesgoodgovernanceintensifytheimpactofenergyfinanceonglobalizationevidencefrombricsnations