Impact of Climate-Finance on Economic Growth: Evidence from Panel Analysis

The paper examines the impact of climate finance on economic growth using a panel of four selected countries (China, Indonesia, Egypt, and Turkey). The findings reveal that climate-related expenditure contributes positively to economic growth irrespective of the models considered (pooled model, fixed effects or random effects models). Similarly, the result also shows that frequency of climate-related disasters has a positive impact on economic growth. However, population is found to negatively impact economic growth. The findings underscore the need to see climate finance beyond merely a response to environmental risks but as a catalyst for inclusive and resilient economic transformation.