Comparative Examine the Impact of Financial Development (Based on Money Market and Capital Market) in the Intensity of Economic Growth Effects on the Environmental Performance

The main objective of this study is to comparative investigating the effects of financial development in the intensity of economic growth effects on the environmental performance considering financial development based on the money market and financial development based on the capital market. Also, we examine the effects of variables such as tourism, financial development (based on money market and capital market) and economic growth on environmental performance of selected developing countries. In this direction, IPS unit root test, fixed effects estimators, approach of System Generalized Method of Moments (System- GMM), F-Limer and hausman test are used in this study. The results indicate that the financial development based on the money market contributes to improved environmental performance. While the financial development based on the capital market reduces the quality of the environment. On the other hand, the presence of financial development based on the money market along with the variable of economic growth has increased the intensity of economic growth effects on the quality of the environment. While the presence of financial development based on the capital market along with the variable of economic growth has reduced the intensity of economic growth effects on environmental quality. The mark of each variable of tourism and the human development index are negative and positive respectively; meaning that the tourism variable will reduce the quality of the environment and the human development index will lead to improved environmental performance.