Examining the impact of financial development on load capacity factor (LCF): System GMM analysis for Asian economies

Contingent upon the empirical work done, current study seeks to investigate environmental load capacity factor (LCF) consequences of financial development in three different ways for 48 Asian economies. We used two-step system generalized method moments (GMM) technique analyze data from 1996 2020. Initially, we investigated by considering six dimensions development. Then, modified original Kuznets curve (EKC) into market-based EKC (FM-EKC) compare short- and long-run Ultimately, explores intersecting marginal effects institutional quality on quality. Our results show that foreign direct investment (FDI), development, economic growth, exhibit statistically significant co-integrating relationships studied This demonstrated how FDI, expansion contribute deterioration countries. The nexus between finance sustainability is moderated regulatory environment, resulting FM-EKC idea. key findings GMM analysis confirmed countries have an inverted U-shaped FM-EKC, which attempt explain with justifications. showed strong structure economy guarantees favorable long run. It also suggested a healthier education can help improve economy.