An empirical research on the relationship between carbon dioxide emissions, financial development and economic growth in South Africa

---

Tezin Türü: Yüksek Lisans

Tezin Yürütüldüğü Kurum: Dokuz Eylül Üniversitesi, Sosyal Bilimler Enstitüsü, Türkiye

Tezin Onay Tarihi: 2024

Tezin Dili: İngilizce

Öğrenci: RODNEY LANDSBERG

Danışman: Pınar Narin Emirhan

Özet:

This investigation examines the empirical relationship between carbon dioxide (CO₂) emissions, financial development, and economic growth in South Africa, covering the period from 1965 to 2022. The study employs a comprehensive analytical framework, including time series analysis, correlation tests, unit root tests, cointegration analysis, and Granger causality tests to explore the dynamic interactions among the variables. The results indicate significant causal relationships between economic growth and both financial development and CO₂ emissions, highlighting the influence of economic activities on environmental outcomes and financial sector expansion. The findings reveal both unidirectional and bidirectional causality among the variables, underscoring the complex interplay between economic growth, financial development, and environmental impact. Limitations of the study include data constraints specific to South Africa, the use of a single proxy for financial development, and the exclusion of external global economic factors. Despite these limitations, the study provides critical insights into the dynamics of South Africa's economy and offers valuable policy recommendations. The study concludes that sustainable economic growth in South Africa requires a balanced approach that fosters financial sector development while mitigating environmental impacts. Policymakers should focus on integrating climate change considerations into financial policies, promoting green finance initiatives, and investing in renewable energy and sustainable practices. These strategies can support economic growth, enhance financial stability, and address environmental sustainability, contributing to long-term development goals. Future research should explore additional variables and policy interventions to further understand and mitigate the environmental impacts of economic growth without hindering financial and economic development.