This study aims to investigate the effects of economic openness and innovations on the environment of ASEAN countries for 1990-2014. We have employed several techniques for empirical analysis. To examine cross-sectional dependence and unit root test, we have used the Pesaran CD test and Pesaran CIPS unit root test. Pedroni and Kao and Westurland cointegration tests have been employed to confirm the cointegration among the variables. For estimations of long-run relationship, we have utilized DOLS and FMOLS techniques. Moreover, to determine the causality directions, we have employed Dumitrescu-Hurlin causality test. The results of the study show that energy use and trade openness significantly increase CO 2 emissions in ASEAN countries. On the other hand, FDI, GDP and patents markedly depress CO 2 emissions. The findings depict that energy use and trade openness harm the environment by escalating CO 2 emissions while FDI, GDP and patents improve the environment by depressing CO 2 emissions. Therefore, policy-makers should encourage investment in renewable energy sources and boost green trade openness in ASEAN countries.
The idea behind the spillover effect of FDI on economic growth is based on the idea that multinational companies can bring technological innovation and rich knowledge to host countries. Therefore, FDI plays a vital role in technological innovations. This study aims to investigate the impact of foreign direct investment (FDI) on the technological innovation of BRICS countries from 2000 to 2020. This study uses the latest econometric techniques, such as the cross-sectional dependence (CD) test, second-generation unit root tests, panel cointegration tests and the Dumitrescu-Hurlin causality test. For long-run run estimation, this study uses the augmented mean group (AMG) panel estimator and the common correlated effects mean group (CCEMG) estimator for empirical analysis. The findings of the study show that foreign direct investment (FDI), trade openness, economic growth, and research & development expenditure positively impact technological innovation in BRICS countries. Also, the model’s long-term causality and lagged error correction term (ECT) are significantly negative. Suggested policy measures will be helpful for BRICS economies in boosting technology innovation through FDI.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.