The Nexus between Environmental quality, Trade Openness and Financial Inclusion: A Systematic Literature across Lower-Middle-Income and Upper-Middle-Income Countries

Abstract

This study aims to investigate the literature's findings regarding the connection among trade openness, financial inclusion, institutional quality, and environmental quality through channel of foreign direct investment (FDI) in the framework of both developed and developing economies. The current theoretical and empirical literature on the subject is studied and précised in this paper. The environmental quality of institutions, financial inclusion, and trade openness through the channel of foreign direct investment (FDI) are first summarized for Panel A, lower-middle-income countries (LMIC), and upper-middle-income countries (UMIC). Secondly, it identifies literature by using empirical and theoretical insights found in the published literature. This article also make clear theoretical perspective that describes how and why they operate. Third, this paper recommends three useful areas for further study. This paper advances the fields of environmental quality, institution quality, financial inclusion, and sectoral growth by systematically analyzing and integrated current theory and research in this field.