Expansion of financial system and production-based carbon emissions: evidence from high-income countries

Figures & data

Table 1. Descriptive statistics and normality.

	PCO2	GDP	EX	IM	FEX
Mean	2.916191	12.46904	1.345698	1.346913	1.957207
Median	2.758443	12.39739	1.401533	1.400853	1.974928
Maximum	3.787781	13.29941	1.674871	1.614194	2.280906
Minimum	2.441905	11.97023	0.945295	0.841109	1.647048
Std. Dev.	0.379638	0.328149	0.199131	0.182187	0.153899
Skewness	1.278095	1.083392	−0.557244	−0.858087	−0.042268
Kurtosis	3.483662	3.554113	2.280874	2.937598	2.452710
Jarque-Bera	63.16831	46.68527	16.41943	27.52536	2.862276
Probability	0.000000	0.000000	0.000272	0.000001	0.239037
Observations	224	224	224	224	224

Source: Authors calculation.

Table 2. Cross-section dependence.

Residual cross-section dependence test
Test	Statists	Probability
Breusch-Pagan LM	330.5393***	0.0000
Pesaran scaled LM	47.76296***	0.0000
Pesaran CD	17.42855***	0.0000

Note: Asterisks indicate a statistical significance level of 1% (***), 5% (**), and 10% (*).

Source: Authors calculation.

Table 3. Stationarity testing.

Variable	(Pesaran, 2007) CIPS
	I(0)	I(1)	Integration
PCO2	−3.016**	–	I(0)
GDP	−2.353	−3.563***	I(1)
EX	−1.640	−3.548***	I(1)
IM	−2.326	−4.504***	I(1)
FEX	−1.176	−3.602***	I(1)

Note: Asterisks indicate a statistical significance level of 1% (***), 5% (**), and 10% (*).

Source: Authors calculation.

Table 4. Cointegration test.

(Westerlund, 2007)
Statistic	Value	Z-value
Gt	−6.990***	−12.892
Ga	−20.551***	−3.970
Pt	−18.009***	−10.839
Pa	−21.293***	−5.493

Note: Asterisks indicate a statistical significance level of 1% (***), 5% (**), and 10% (*).

Source: Authors calculation.

Table 5. MMQR estimates.

Variable	Location	Scale	Quantiles
			Q^0.25	Q^0.50	Q^0.75	Q^0.90
GDP	0.824*** [0.103]	−0.104 [0.086]	0.910*** [0.153]	0.822*** [0.101]	0.713*** [0.383]	0.653*** [0.111]
EX	−0.484 [0.439]	−0.216 [0.367]	−0.308 [0.666]	−0.489 [0.433]	−0.715** [0.356]	−0.838* [0.468]
IM	0.100 [0.386]	0.358 [0.323]	−0.190 [0.581]	0.108 [0.381]	0.481 [0.312]	0.685 [0.416]
FEX	−0.255* [0.131]	−0.078 [0.110]	−0.191 [0.197]	−0.257** [0.130]	−0.339*** [0.106]	−0.384*** [0.140]
Constant	−6.349*** [1.546]	1.391 [1.292]	−7.481*** [2.307]	−−6.318*** [1.519]	−4.870*** [1.245]	−4.078** [1.663]

Note: The dependent variable is PCO₂. Asterisks indicate a statistical significance level of 1% (***), 5% (**), and 10% (*).

Source: Authors calculation.

Figure 1. Graphical depiction of bootstrap quantile regression coefficients.

Source: Authors Own Visualization.

Table 6. Robustness – bootstrap quantile regression.

Variable	Quantiles
	Q^0.25	Q^0.50	Q^0.75	Q^0.90
GDP	0.926***	1.020***	0.696***	0.600***
EX	−0.617**	−0.341	−0.619***	−0.430***
IM	0.032	0.048	0.310	0.041
FEX	−0.159**	−0.087	−0.401**	−0.620***
Constant	−7.641***	−9.273***	−4.431***	−2.666***

Note: The dependent variable is PCO₂. Asterisks indicate a statistical significance level of 1% (***), 5% (**), and 10% (*).

Source: Authors calculation.

Table 7. Parametric robust analysis.

Robust regression
Variable	Coefficient	Standard error	z-stat.
GDP	0.848333***	0.051507	16.47019
EX	−0.511852**	0.242843	−2.107745
IM	0.141307	0.233275	0.605752
FEX	−0.227902***	0.075095	−3.034873
C	−6.717745***	0.754875	−8.899143

Source: Authors calculation.

Pesaran, M. H. (2007). A simple panel unit root test in the presence of cross‐section dependence. Journal of Applied Econometrics, 22(2), 265–312. https://doi.org/10.1002/jae.951

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Westerlund, J. (2007). Testing for error correction in panel data. Oxford Bulletin of Economics and Statistics, 69(6), 709–748. https://doi.org/10.1111/j.1468-0084.2007.00477.x

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