Abstract

This study examined the impact of ethical and Islamic finance on EGR in Nigeria. Monthly time series data that spanned November 2017 to December 2020 were analyzed with underlying descriptive statistics, correlation analysis, Augmented Dickey-Fuller (ADF) unit root test and FMOLS methodology. Findings reveal that ethical funds and green financing did not significantly impact economic growth rather Islamic financing (Sukuk bond) significantly reduced economic growth. Also, only the inflation rate spurred growth significantly while trade openness and exchange rate reduced EGR significantly. From the result analysis, this study concludes that ethical funding, green and Islamic finance as a fiscal model can spur economic growth and environmental protection but Nigeria has not started to reap the benefit effect of these classes of finance. The empirical results of this paper according to the endogenous growth model are reliable with the findings of prior studies.