Carbon emissions and the rising effect of trade openness and foreign direct investment: Evidence from a threshold regression model

Derindag, Omer Faruk; Maydybura, Alina; Kalra, Akash; Wong, Wing-Keung; Chang, Bisharat Hussain

doi:10.1016/j.heliyon.2023.e17448

Cited by 23 publications

(11 citation statements)

References 42 publications

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“…Multinational corporations often introduce cleaner and more sustainable technologies, replacing outdated production methods with more environmentally friendly alternatives. Moreover, specialization in production allows countries to focus on their comparative advantages, leading to efficient resource allocation and reducing resource-intensive activities [ 100 , [126] , [127] , [128] , [129] , [130] ]. A controversial outcome is that energy usage in LDCs has a favorable effect on EQ.…”

Section: Discussion Of Resultsmentioning

confidence: 99%

The impact of green FDI on environmental quality in less developed countries: A case study of load capacity factor based on PCSE and FGLS techniques

Famanta,

Randhawa,

Yajing

2024

Heliyon

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Section: Discussion Of Resultsmentioning

confidence: 99%

The impact of green FDI on environmental quality in less developed countries: A case study of load capacity factor based on PCSE and FGLS techniques

Famanta,

Randhawa,

Yajing

2024

Heliyon

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“…Tachie, Xingle, Dauda, Mensah, Appiah-Twum and Adjei Mensah [24] found trade openness remains controversial and could still be a potential driver of carbon dioxide emissions. Derindag, et al [52] stated trade openness reduced carbon emissions to promote FDI. Reference [53] also found international trade leads to a 0.202% decrease in CO 2 emissions.…”

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

“…While some research indicates that economic openness may increase carbon emissions, other studies provide contradictory results, indicating the different effects of trade on CO 2 levels [4]. Furthermore, there may be variations in carbon emissions in response to changes in trade openness, suggesting a complicated relationship between international commerce and environmental effects [52]. It is anticipated that domestic trade liberalization in N-11 nations may result in environmental degradation through excessive CO 2 emissions; alternatively, β 2 = ϑCO 2 ϑTO > 1.…”

Section: Variables Definition and Anticipated Sign Of Coefficientsmentioning

confidence: 99%

Nexus between Innovation–Openness–Natural Resources–Environmental Quality in N-11 Countries: What Is the Role of Environmental Tax?

Qamruzzaman,

Karim,

Kor

2024

Sustainability

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This research investigates the intricate relationship between financial openness, natural resources, and carbon neutrality in the N-11 countries. It provides insights into how environmental tax and innovation can drive carbon neutrality in these nations, thus advancing our understanding of the nexus among financial openness, natural resources, and carbon neutrality. The study aims to offer policymakers perspectives on formulating policies to foster sustainable economic development and environmental conservation in the N-11 nations. The discourse highlights the environmental implications of foreign direct investment (FDI) and trade openness, revealing a complex interplay between economic development, technological innovation, and environmental sustainability. While FDI can facilitate technological transfers and managerial advancements that enhance resource efficiency and promote environmentally friendly practices, its environmental impact varies based on regulatory frameworks and enforcement mechanisms. In countries with weak environmental regulations, FDI may lead to negative outcomes such as pollution hotspots, resource depletion, and ecosystem degradation. Similarly, trade openness can exacerbate environmental degradation through increased production, energy consumption, and waste generation. However, both FDI and trade openness can contribute positively to environmental sustainability when coupled with effective environmental policies, investment in green technology, and the promotion of sustainable practices. Thus, policymakers must strike a balance between economic development and environmental protection by implementing stringent environmental regulations, promoting clean technology transfer, and fostering sustainable development practices domestically and internationally. This research offers valuable insights for policymakers aiming to navigate the complexities of achieving carbon neutrality while ensuring sustainable economic growth in the N-11 countries.

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“…Similarly, reports have also revealed a positive impact of longevity on various measures of GDP and GDP growth ( Bloom et al, 2004;Bloom et al, 2018;Farahani et al, 2009;Nguyen, et al, 2017). Derindag et al, (2023) reported that foreign direct investment and trade openness have three threshold effects on industrial carbon emissions. Several researchers have demonstrated a positive link between education and economic growth in diverse nations using the appropriate models.…”

Section: Introductionmentioning

confidence: 96%

Linkages between economic growth, health expenditures, education, and environment: dynamic analysis of Nigeria

Onwunali,

Chima,

Ochigbo

2024

SWJ

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The study comprehensively analyzed the nexus between economic growth, health expenditures, education, and the environment in Nigeria, using data obtained from Central bank of Nigeria and World Bank. By utilizing a robust dataset spanning from 1981 to 2021, the study employed autoregressive distributed lag (ARDL) approach to uncover intricate relationships. Results, both short-run and long-run analyses, reveal that health and education spending, and gross fixed capital formation positively correlated with economic growth. Conversely, the findings demonstrated that population growth and carbon dioxide emissions (CO2) exerted detrimental effects on economic growth due to the negative impact on the health of the working population. Additionally, the inverted U-shaped relationship between the macroeconomic footprint and income confirms the validity of Nigeria's Environmental Kuznets Curve (EKC) phenomenon. Lastly, the findings of this study hold important policy implications, emphasizing the need for technological advancements and innovative solutions to address the challenges associated with economic growth, health expenditures, education, and the environment in Nigeria. Policy measures promoting birth control through contraception and family planning should be embraced to effectively manage the country's rapidly growing population.

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Carbon emissions and the rising effect of trade openness and foreign direct investment: Evidence from a threshold regression model

Cited by 23 publications

References 42 publications

The impact of green FDI on environmental quality in less developed countries: A case study of load capacity factor based on PCSE and FGLS techniques

The impact of green FDI on environmental quality in less developed countries: A case study of load capacity factor based on PCSE and FGLS techniques

Nexus between Innovation–Openness–Natural Resources–Environmental Quality in N-11 Countries: What Is the Role of Environmental Tax?

Linkages between economic growth, health expenditures, education, and environment: dynamic analysis of Nigeria

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