Using a panel data set of 189 countries by employing dynamic models OLS, fixed effect, random effect and generalized method of moments (GMM) estimators. The study revisits the relationship between institutional quality and financial development in developing and emerging countries. This study is ever the first comprehensive and wide-ranging that categorizes the countries into developing and emerging countries using multiple dynamic approaches. Experimental findings of the study are based on GMM, which indicates that better institutions are important for financial development, specifically political stability, control of corruption and regulatory quality positively affect financial development in the global panel of the study. Rule of law negatively affects financial development, which reveals that in most of the global countries, the rule of law is very feeble. Control of corruption index is positively effecting financial development in emerging and global panel which indicates that most of the countries have reduced corruption to low level. The current study also found that emerging countries have reduced corruption, but other institutional indicators are found to be insignificant. The overall result concludes that good quality institutions are the main drivers of financial development and it stimulates financial development. The present study suggests that developing and emerging countries should focus to improve the institutional quality by re-examining the rules of law, government effectiveness and voice accountability institutional factors to make it better.

Studies regarding environmental degradation and its association with different factors have got considerable attention recently in the prevalent literature but with assorted outcomes which have been a guide to the ongoing debate on environmental studies. Energy from renewable sources has been considered beneficial for environmental quality while it is still below the anticipated level especially in developing economies. Openness to trade is important to enhance economic growth while it has been overawed to worsen the quality of environment due to deprived policies especially in developing countries. Subsequently, the present research investigates trade openness, renewable energy consumption, and foreign direct investment in carbon emission in the world developing and developed countries by employing static, dynamic and long run estimators. Trade openness has been found to have a decreasing effect on carbon emission in developed countries while degrading the quality of environment in developing countries while renewable energy consumption enhances environmental quality in both samples. The impact of tourism on carbon emission varies in different samples where FDI increases emission in developed countries while having a negative effect of carbon emission in developing countries. The long run estimators also evidence the existence of long run association among variables. The outcomes of this study have considerable policy implication regarding trade openness policy formulation to upsurge environmental quality especially in developing countries. The study has further suggestions regarding tourism and promoting the use of renewable energy sources by avoiding the use of former’s energy to enhance environmental quality.