Digital Finance, Environmental Risk, and Sustainable Economic Growth in Emerging Economies: A Comparative Study of BRICS and MINT Countries
Kais SaidiObjectives
This study aims to examine the short-run and long-run effects of digital finance and environmental risk on economic growth and to compare these effects between BRICS and MINT economies. Annual panel data covering nine emerging economies for the period 1990–2024 were obtained from the World Development Indicators database.
Material and Methods
The study employs second-generation panel econometric techniques, including cross-sectional dependence tests, slope heterogeneity tests, Westerlund cointegration tests, and the Cross-Sectionally Augmented Autoregressive Distributed Lag (CS-ARDL) model.
Results
The findings indicate that environmental degradation, particularly carbon emissions and energy intensity, exerts a negative effect on economic growth in both the short and long run. In contrast, digital finance, renewable energy consumption, and human capital significantly enhance long-run economic performance. The results also confirm the existence of a long-run cointegrating relationship among the variables across both BRICS and MINT countries.
Conclusion
Digital finance can contribute positively to economic growth when supported by renewable energy development, human capital accumulation, and effective environmental policies. Therefore, integrating digital transformation with sustainability-oriented strategies is essential for promoting long-term economic growth in emerging economies.