How Do Economic Policy Uncertainty and Financial Development Affect Green Innovation? Evidence from G7 and BRIC Countries

The aim of the study is to reveal the relationship between economic policy uncertainty and green innovation for developed and developing countries.Additionally, the aim is to examine the relationship between financial development and green innovation for developed and developing countries.This study investigates the impact of economic policy uncertainty and financial development on green innovation for G7 and BRIC countries via Panel ARDL method.The time period taken for this study covers the years from 1990-2020.The panel ARDL test results for the G7 countries revealed that over the long term, there was a significant and negative relationship between GI and EPU.In the long-run analysis results in this study for the G7 countries, a significant and positive relationship was found between GI and FD.In earlier research, the relationship between FI and GI has been ignored in favour of investigating the relationship between EPU and GI.Furthermore, the relationship between GI and EPU for both developing and developed countries has not been investigated or compared in earlier studies.Therefore, we created two models in the study and analysed two groups of countries separately to fill the gap in the literature.