Nexus between financial development and carbon emission in Bangladesh: Evidence from ARLD and NARDL

The motivation of the study is to assess the impact of financial development, trade openness and foreign direct investment on environmental sustainability in Bangladesh for the period 1990-2019. The results of combined cointegration and Makki cointegration revealed long-run cointegration between explained and explanatory variables, moreover, the cointegration test under symmetry and asymmetry established the similar line of evidence. Referring to the coefficients of FD, TO and FDI, it is apparat that the population haven hypothesis has revealed, suggesting the environmental degradation has expedited due to FD, TO and FDI in Bangladesh in the long and short run. Additionally, the asymmetric assessment revealed a nonlinear linkage between explained and explanatory variables in the long-run and short-run