The Effect of Financial Development and Human Capital on Economic Growth and Environment Quality: A case of Asian Countries

Abstract

As the world is advancing, many things are happening drastically. Financial development, Economic growth, Increase in Human Capital, and deterioration of Environment Quality. This study examines the effects of financial development and human capital on economic growth and environmental quality in five Asian nations between 1995 and 2020.. This is panel data we have tested our results from running simple regression and OLS regression, fixed and random effect models. We found a positive and significant effect of Financial Development and Human Capital on Economic Growth and a negative and significant effect of Financial Development and Human capital on Environment Quality. Furthermore, the study reveals that the adaption of financial development and human capital is a key factor in reducing carbon dioxide hence improving Environment Quality. Our finding provides evidence of the social advantages of investing in advanced human capital and financial development, suggesting a fruitful route for devoting climate change without impeding economic growth