Search Results (447)

This study examines the impact of inward foreign direct investment (FDI) on economic growth in South and Southeast Asia from 2006 to 2022, using a comprehensive panel dataset and multiple econometric techniques. The baseline estimation employs Feasible Generalized Least Squares (FGLS), with robustness checks using Fixed Effects with Driscoll–Kraay standard errors, the Common Correlated Effects Mean Group (CCEMG) estimator, and Two-Stage Least Squares (2SLS). The results consistently show that FDI and Gross Capital Formation (GCF) significantly promote growth, while the Human Capital Index (HCI), Trade Openness (TO), and Inflation (I) have limited or adverse effects. Government spending (GS) is negatively associated with growth, suggesting inefficiencies in public resource allocation. The findings underscore the importance of enhancing absorptive capacity through investments in education, institutional quality, and trade facilitation. Policy recommendations include adopting performance-based budgeting and independent audits, drawing on Malaysia’s anti-corruption and audit reforms. To address the weak impact of human capital, this study advocates for expanding public–private partnerships in technical and vocational education, modelled on Singapore’s SkillsFuture initiative. Additionally, digital investment platforms like Indonesia’s Online Single Submission (OSS) system and infrastructure upgrades are recommended to reduce trade costs and improve the investment climate. Finally, the study calls for deeper regional integration through harmonized investment regulations under the ASEAN Comprehensive Investment Agreement (ACIA) and the development of cross-border special economic zones (SEZs). These recommendations are grounded in empirical evidence and tailored to the region’s structural characteristics, offering actionable insights for policy-makers. Full article

In the Mediterranean region, countries grapple with a mix of environmental pressures, such as air pollution and climate vulnerability, alongside economic disparities and migration issues. In this context, we aim to highlight the interaction between migration (NMIG), economic growth (GDP), foreign direct investments (FDI), fossil fuel (FF) usage, consumption from renewables (RENC), CO₂ emissions, and life expectancy (LE). This is important for gaining insights into how policies in areas like energy, environment, migration, and FDI influence long-term health outcomes. Our research examines the determinants of LE in two groups of Mediterranean countries (EU-Med8 and Non-EU-Med4) using a panel ARDL approach. The long-run results for Med8 indicate that RENC positively influences LE, while FF has a significant negative effect. Economic growth and migration also play important roles, with GDP positively affecting LE. The error correction term (ECT) confirms convergence toward long-run equilibrium. For Med4, FF consumption and CO₂ negatively affect LE, while migration and FDI exhibit mixed results. These findings suggest that while renewable energy transitions benefit LE in EU Mediterranean countries, challenges persist in non-EU countries, where energy infrastructure and investment patterns may not yet support positive health outcomes. Full article

This study probes the complex interplay between tourism development (TDI), economic growth (GDP), and environmental sustainability, focusing on the ten most influential tourism nations: China, France, Italy, the United Kingdom, Mexico, Germany, Turkey, Spain, the United States, and Russia, covering the time from 1994 to 2023. This study uses feasible generalized least squares (FGLS) and Two-Stage Least Squares (2SLS) together with Driscoll–Kraay (DK) and panel quantile regression (PaQR) to examine the environmental as well as economic effects of TDI combined with trade openness (TOPE), foreign direct investment (FDI), energy prices (EPS), and population density (POPD). All models show that tourism development, indicated by TDI, and economic growth increase carbon emissions, demonstrating these variables’ adverse environmental impact. Energy prices, trade openness, and foreign direct investment lead to decreased emissions because these factors help promote energy-efficient clean technology. Furthermore, GDP growth positively influences TDI, while excessive carbon emissions negatively impact the appeal of tourism. The results indicate the need for sustainable tourism policies and investment in clean energy and green infrastructure, aligned with SDG 9, to foster innovation in energy-efficient practices and infrastructure. The research also supports SDG 13 by advocating climate-resilient tourism models and policies that decouple economic growth from environmental degradation. By adopting various advanced econometric approaches, this study provides strong evidence on the relationship between tourism, the macroeconomy, and environmental results. It offers fresh insights on how to achieve the growth of tourism and climate protection at the world’s top tourist destinations. Full article

This study investigates the roles of foreign direct investment (FDI) and technological innovation in influencing environmental sustainability across ten newly industrialized countries (NICs) over the period from 1990 to 2021. Using the wavelet quantile regression (WQR) approach, the analysis captures both the dynamic and heterogeneous relationships between FDI, technology, renewable energy, economic growth, financial development, and environmental outcomes across different quantiles and time scales. The results show that although economic expansion and foreign direct investment often help to lower CO₂ emissions, their impact varies across countries and time horizons. Technological innovation has a dual impact—contributing to emission reductions in the short term while potentially leading to increased environmental degradation over the long term. These results underscore the importance of aligning FDI inflows and technological advancement with environmental policies to ensure sustainable growth in NICs. This study makes significant empirical and policy contributions to the ongoing discourse on reconciling economic development with ecological preservation in emerging markets. Full article

The evolving macroeconomic landscape, shaped by the global financial crisis and the COVID-19 pandemic, poses significant challenges for economies worldwide. However, Central, Eastern, and Southeastern European (CESEE) countries have demonstrated resilience and rapid recovery during crises, driven by a surge in consumption fueled by domestic credit and robust export growth supported by flexible exchange rates and adaptive monetary policies. Prior to EU accession, substantial foreign direct investment (FDI) during privatization and restructuring facilitated knowledge and technology transfers in CESEE economies. This study examines the interplay of exports, real exchange rates, GDP growth, FDI, inflation, domestic credit, and the human development index (HDI) in the CESEE region from 1995 to 2022, covering the transition period, EU accession, and major crises. Employing a panel ARDL model, we account for asymmetric effects of these variables on exports. The results reveal that GDP, FDI, inflation, domestic credit, and HDI significantly and positively influence exports, with HDI and GDP exerting the strongest effects, underscoring the pivotal roles of human capital and economic growth in enhancing export competitiveness. Conversely, real exchange rate depreciation negatively impacts exports, though non-price factors, such as product quality, mitigate this effect. These findings provide a robust basis for targeted policy measures to strengthen economic resilience and export performance in the CESEE region. Full article

The increasing economic engagement of China in Africa through foreign direct investment (FDI) and trade has raised concerns about its environmental consequences, particularly resource depletion. While the existing literature highlights the role of FDI and trade in resource exploitation, the varying impacts across governance contexts remain underexplored. This study investigates how Chinese FDI and trade influence resource depletion in Africa, integrating institutional and resource curse perspectives to explain divergent outcomes. Using dynamic panel data models and the system generalized method of moments (SGMM) to address endogeneity, we analyze data from 28 African countries between 1998 and 2022. The results show that Chinese FDI significantly accelerates resource depletion—particularly total resources, energy, and forests—especially in low-governance countries. In contrast, Chinese trade exhibits a limited relationship with depletion, with significant effects only on energy resources in weak institutional settings. Notably, neither FDI nor trade has significant effects in high-governance countries, underscoring the protective role of strong institutions. The study contributes to the literature by demonstrating how governance quality mediates the environmental impacts of Chinese economic engagements. It offers policy insights for African nations, emphasizing institutional strengthening to align foreign investments and trade with sustainable resource management. These findings call for balanced economic policies that prioritize environmental sustainability alongside economic growth. Full article

This study offers insight into the multifaceted relationship between economic policy uncertainty, foreign direct investment, and financial development. It analyzes the effects of economic policy uncertainty and financial development on foreign direct investment (FDI) inflows, using a sample of 75 emerging markets and developing countries, over 2000–2023. To achieve this, a pooled mean group (PMG) was used, and the finding of this study for this period is a positive long-term relationship between economic policy uncertainty and foreign direct investments inflows, challenging the traditional view that uncertainty deters investment. In the long term, the joint effects of financial development and economic policy reduced foreign direct investments. These findings highlight the critical role of financial development in shaping the long-term impact of uncertainty on FDI, and they underscore the need for policy to enhance financial systems in order to stabilize and sustain FDI inflows in uncertain environments. Full article

Global efforts to reduce climate change have increased, necessitating more comprehensive research. However, empirical evidence of the implication of synergizing foreign direct investment (FDI) and renewable energy consumption (REC) to reduce environmental pollution, specifically with nitrous oxide (N₂O) and methane (CH₄) emissions, is missing in the literature. This research investigates the impact of FDI, REC and their synergy in facilitating technological leapfrogging, analyzing their linear, non-linear and indirect effects on environmental pollution (CO₂, N₂O and CH₄ emissions). The analysis focuses on 81 developing countries, analyzing them at both the general level and by income groups—low-income countries (LICs), middle-income countries (MICs) and high-income countries (HICs), with government effectiveness and economic growth serving as mediating variables. Using Canonical Correlation Regression (CCR), Fully Modified Ordinary Least Squares (FMOLS) and clustered Pooled Least Square (PLS) techniques, the analysis covers data from 2003 to 2023. The results indicate that at the general level, FDI and REC increase N₂O and CH₄ emissions individually. However, their integration mitigates N₂O and CH₄ emissions. Additionally, the relationships remain consistent even when government effectiveness and economic growth are considered mediators. However, economic growth is more pronounced than government effectiveness in reducing environmental pollution. The non-linear analysis also reveals that FDI and REC have a significant U-shaped effect on CO₂ emissions. However, their synergy demonstrates an inverted U-shaped nexus with CO₂ emissions. At the income group levels, the interplay of FDI and REC reduces N₂O and CH₄ emissions in MICs; however, in LICs and HICs, it increases N₂O and CH₄ emissions. Full article

The global economy faces a critical challenge: balancing economic survival through natural resource utilization with the imperative of long-term environmental sustainability. Green innovation presents a viable solution, yet its effectiveness hinges on establishing well-structured legislative frameworks. This study, covering the period 1996 to 2022, examines the moderating effect of green innovation on the relationship between natural resource rents and ecological footprint while also considering the roles of globalization, financial development, and energy transition in the ten most resource-abundant countries. Utilizing the augmented mean group (AMG) estimator, the findings indicate that natural resource rents significantly contribute to ecological footprint, reinforcing concerns about resource-driven environmental degradation. However, green innovation mitigates these adverse effects, promoting sustainable resource management in alignment with SDG 12 (Responsible Consumption and Production). Additionally, renewable energy and globalization positively influence environmental conditions, reinforcing the drive toward clean and affordable energy (SDG7), while economic growth, financial development, and non-renewable energy exacerbate environmental harm. Furthermore, foreign direct investment (FDI) increases ecological footprint, reinforcing the Pollution Haven Hypothesis for resource-rich economies. Rigorous robustness checks using CCEMG, FMOLS, and DOLS methodologies, along with country-specific analyses, affirm the empirical validity of these results. In light of these conclusions, the paper advocates for legislative reforms to enhance sustainability and optimize resource utilization, ensuring a balanced approach to economic development and environmental preservation. Full article

The study examined the influence of foreign aid on foreign direct investment (FDI) in upper-middle-income economies using panel data (2011–2021) analysis methods such as two-stage least squares (2SLS) and system GMM (generalized methods of moments). The study also explored if human capital development enhanced foreign aid’s influence on FDI in upper-middle-income economies during the same timeframe. The conflicting, divergent, and mixed results and views on the relationship between foreign aid, human capital development, and foreign direct investment (FDI) motivated the undertaking of this study to fill in the existing gaps. Apart from FDI enhanced by its own lag, foreign aid significantly improved FDI (under system GMM). FDI was also improved significantly by human capital development across all two panel methods. Under 2SLS and system GMM, foreign aid significantly improved FDI through the human capital development channel. To promote FDI inflows, upper-middle-income economies should develop and implement policies aimed at attracting foreign aid and enhancing the development of human capital. The study suggests that further research on threshold regression analysis on foreign aid–FDI nexus in upper-middle-income economies could better help develop an FDI policy that is beneficial toward economic growth. Full article

This study investigates the intricate relationships among CO₂ emissions, income inequality, the Economic Complexity Index (ECI), foreign direct investment (FDI), the Human Development Index (HDI), and the economic growth across countries. Three distinct models are developed: the first examines their effects on economic growth, the second analyzes their impact on income inequality, and the third explores their influence on CO₂ emissions. Advanced econometric methods, including Fully Modified Ordinary Least Squares (FMOLS) and Dynamic Ordinary Least Squares (DOLS), are employed to ensure robust and reliable results. The findings indicate that income inequality impedes economic growth, whereas economic growth and greater economic complexity help reduce inequality. While FDI significantly boosts GDP growth, it also widens the income disparities and intensifies environmental degradation, raising questions about the sustainability and quality of foreign investments. In contrast, human development emerges as a vital driver of economic growth and a critical factor in reducing CO₂ emissions, highlighting the value of investing in education, healthcare, and living standards to achieve sustainable development. These insights underscore the necessity for carefully designed policies that harmonize economic progress, social equity, and environmental sustainability. Full article

Brazil, as an emerging and newly industrialized nation, presents a complex dynamic between economic advancement and environmental sustainability. This study investigates the influence of coal consumption (COAL), gross domestic product (GDP), renewable energy (REN), and foreign direct investment (FDI) on CO₂ emissions in Brazil using quarterly data from 1990Q1 to 2020Q4. Employing the Quantile-on-Quantile Kernel-Based Regularized Least Squares (QQKRLS) method and the Quantile-on-Quantile Granger Causality (QQGC) test, we uncover significant nonlinear and distributional heterogeneities in these relationships. Results show that COAL, GDP, and FDI consistently exert a positive impact on CO₂ emissions across most quantiles, whereas REN significantly reduces emissions, particularly at the upper emission quantiles. Causality analysis confirms that all four variables are significant predictors of CO₂ emissions. The study contributes methodologically by applying QQKRLS and QQGC to reveal nuanced interactions across the emissions distribution—an advancement over traditional linear approaches. Empirically, it provides Brazil-specific evidence of the dual role of FDI and economic growth in both driving emissions and offering potential for sustainable transition. Based on these findings, we recommend policies that prioritize sector-specific FDI screening to promote green technologies, accelerate investment in renewable energy infrastructure, and impose adaptive carbon pricing mechanisms that reflect the heterogeneous impact of coal and economic growth on emissions. These insights support Brazil’s climate targets and guide a balanced path toward inclusive and sustainable development. Full article

Sustainable development is an inevitable derivative outcome of the advancement of social productive forces and the innovation of science and technology. In the current era, a multitude of global issues are intertwined. Sustainable development provides ideas and approaches of crucial value for resolving these difficult situations. This study constructs a micro-level indicator system to assess the quality of foreign direct investment and measures the quality of FDI in China from 2011 to 2022. Using the two-way fixed effects panel model, this study empirically tests the impact of FDI quality on China’s sustainable development and deeply examines the industry heterogeneity. The findings reveal that (1) micro-level FDI quality indicators avoid aggregation bias and lagged responses inherent in macro-level analyses, enabling precise and timely detection of foreign firms’ reactions to macroeconomic shifts. (2) Enhancing FDI quality exerts a positive and significant effect on China’s sustainable development, with notable variations across industries. (3) Further analysis shows that, first, in eastern coastal provinces, well-functioning market mechanisms amplify the positive externalities of high-quality FDI on resource allocation. Second, the moderating role of intellectual property protection in FDI’s human capital effects exhibits significant heterogeneity across industries. Full article

Achieving a sustainable energy future is the cornerstone of global efforts to combat environmental degradation and align with corporate social responsibility (CSR) objectives. This study examines the complex relationship between energy consumption, carbon emissions, and the moderating influence of foreign direct investment (FDI) in the E-7 economies of Brazil, China, India, Indonesia, Mexico, Russia, and Türkiye from 2000 to 2022. Employing advanced panel data methodologies, including continuously updated fully modified (Cup-FM) and continuously updated bias-corrected (Cup-BC) techniques, we explored the long-term dynamics of energy use, urbanization, human capital, and FDI. Our findings reveal persistent cointegration among these variables, with energy consumption, urbanization, and human capital significantly contributing to CO₂ emissions. However, FDI has emerged as a critical mitigating factor, exhibiting a negative correlation with carbon emissions and moderating the emission-enhancing effects of urbanization and human capital. These results underscore the dual role of FDI as both an engine of economic growth and a catalyst for environmental sustainability. This study advocates for prioritizing green FDI inflows, particularly in renewable energy infrastructure, to harmonize economic development with global sustainability targets. By integrating CSR strategies with energy transition policies, this study provides actionable insights for policymakers and corporate leaders to foster sustainable development in rapidly industrializing economies. These findings contribute to the broader discourse on sustainable development, emphasizing the need for strategic investments and policy frameworks to achieve a low-carbon future. Full article

This study explores the dynamic relationship between economic growth, technological innovation, and $C{O}_2$ emissions in BRICS nations, integrating the Environmental Kuznets Curve (EKC) and Innovation Claudia Curve (ICC) frameworks. Using a panel ARDL approach on data from 1991 to 2023, we investigate the long-run and short-run interactions between GDP, renewable energy consumption (RENC), foreign direct investment (FDI), urbanization (URB), and patent applications (PAs) in shaping environmental outcomes. The findings confirm the EKC hypothesis, revealing an N-shaped relationship between GDP and emissions, indicating that while economic growth initially leads to higher $C{O}_2$ emissions, this trend reverses at a critical threshold before a secondary increase occurs at higher income levels. The ICC framework identifies a cubic relationship between innovation and emissions, where technological advancements initially drive higher emissions before contributing to sustainability at later stages, though an excessive scale of innovation may reintroduce environmental pressures. RENC is found to significantly mitigate emissions, while URB and FDI display dual and context-dependent effects, highlighting the multidimensionality of sustainable transitions in emerging economies. These results underscore the importance of targeted policy interventions, such as scaling renewable energy infrastructure, promoting green innovation, guiding urban expansion, and aligning FDI with environmental objectives. Full article