Factors of international trade and environmental degradation in the UAE: Moderating role of foreign investor characteristics

Abstract

The purpose of the study is to identify the moderating role of economic factors of foreign investor over the relationship between economic factors and environmental degradation in Dubai which is among the fastest-growing economies and is attracting foreign direct investments (FDI) at the best. In order to meet the objectives of the study two hypotheses were developed. The first hypothesis deals with the direct effect of economic dimensions of foreign direct investment (Alkathiri, 2022), whereas, the second hypothesis deals with the moderating impact of foreign investor characteristics over the relationship between economic dimensions of foreign direct investment and environmental degradation. Both hypotheses have been checked over the primary data collected from the executives of multinational companies operating in Dubai. The findings of the study revealed that economic dimensions of foreign direct investment have a significant impact on environmental degradation. Likewise, foreign investor characteristics hold a significant moderating role in the significant relationship between economic factors of foreign direct investment and environmental degradation (Khan & Agha, 2015). The study showed some limitations and opened the horizons for future research.