Foreign direct investment, stock market capitalization, and sustainable development: relative impacts of domestic and foreign capital

Destek, Mehmet Akif; Sohag, Kazi; Aydın, Sercan; Destek, Gamze

doi:10.1007/s11356-022-24066-6

Cited by 11 publications

(3 citation statements)

References 96 publications

(83 reference statements)

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“…When all findings are taken into account, it is discovered that economic expansion causes environmental harm in transition economies. This finding validates the studies of Shahbaz et al (2018); Zafar et al (2022); Destek et al (2021); Adedoyin et al (2021); Adebayo et al (2021); Caglar et al (2022); Destek et al (2022); Liu et al (2022); Manga et al (2023). The fact that real national income growth causes both short- and long-term environmental deterioration indicates that a parabolic connection, or a Kuznets-type relationship, is not yet relevant for transition economies.…”

Section: Empirical Findings and Discussionsupporting

confidence: 86%

Do Trade and Financial Cooperation Improve Environmentally Sustainable Development: A Distinction Between de facto and de jure Globalization

2023

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The adoption of growth strategies based on foreign trade, especially in the previous century when liberal policies began to dominate, is one of the main reasons for the increase in output and indirectly for environmental concerns. On the other hand, there are complex claims about the environmental effects of liberal policies and thus of globalization. This study intends to analyze the effects of global collaborations involving 11 transition economies that have completed the transition process on the environmentally sustainable development of these nations. In this direction, the effects of financial and commercial globalization indices on carbon emissions are investigated. The distinctions of globalization are used to distinguish the consequences of the two types of globalization. In doing so, the de facto and de jure indicator distinctions of globalization are used to differentiate the consequences of two types of globalization. In addition, the effects of real GDP, energy efficiency, and use of renewable energy on environmental pollution are dissected. For the main purpose of the study, the CS-ARDL estimation technique that allows cross-sectional dependency among observed countries is used to separate the short and long-run influences of explanatory variables. In addition, CCE-MG estimator is used for robustness check. According to the empirical findings, the economic growth and increasing energy intensity increases carbon emissions, but the increase in renewable energy consumption improves environmental quality. Furthermore, trade globalization does not have a significant impact on the environment in the context of globalization. On the other hand, the increase in de facto and de jure financial globalization indices results in an increase in carbon emissions, but de jure financial globalization causes more environmental damage. The harmful impact of de jure financial globalization on environmental quality suggests that the decreasing investment restrictions and international investment agreements of transition countries have been implemented in a manner that facilitates the relocation of investments from pollution-intensive industries to these countries.

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Section: Empirical Findings and Discussionsupporting

confidence: 86%

Do Trade and Financial Cooperation Improve Environmentally Sustainable Development: A Distinction Between de facto and de jure Globalization

2023

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“…Recent research with a focus on FDI aligning with environmental, social, and governance considerations provides a comprehensive outlook on the impact of FDI on economic growth (Destek et al, 2023). Studies revealed the understanding of the relationship between FDI and economic growth.…”

Section: Morgan Journal Of Interdisciplinnary Research Studiesmentioning

confidence: 99%

Impact of Foreign Direct Investment on the Economic Growth of Nepal

Balami,

Dhakal,

Chalise

et al. 2024

Morgan J. Interdisc. Res. Stud.

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The study investigates the factors influencing foreign direct investment (FDI) and its sectoral distribution in the Nepalese economy, specifically examining the relationship and impact of FDI on sectors such as minerals, manufacturing, construction, energy, and services over a ten-year period from 2011/12 to 2020/21. Descriptive and correlational research design was employed in the annual time series data. The major findings reveal a positive correlation (correlation co-efficient of 0.668) between FDI and Gross Domestic Product (GDP), signifying a significant relationship. The study concludes that FDI has a substantial impact on Nepal's GDP. Additionally, sectoral FDI investments, including minerals, construction, energy, manufacturing, and services, also positively influence the country's GDP. The study suggests that despite Nepal's untapped FDI potential, implementation challenges, lengthy approval processes, and a service sector bias among investors hinder optimal exploitation of investment opportunities in other sectors with higher productivity.

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“…The environmental effectiveness of domestic capital accumulation is higher in lowemission sates than in high-emission staes. On the other hand, foreign capital does not significantly impact emission levels in all quantiles (Destek, 2023). A study (Shehzad et al, 2021) examined the impact of Objective Oriented Investment Behavior (OOIB) and Financial Risk Attitudes (FRA) on the investors of Pakistani.…”

Section: Literature Reviewmentioning

confidence: 99%

Macroeconomic Factors Influencing Market Capitalization of Pakistan Stock Exchange (PSX)

Saeed

Sultana

Ahmed

et al. 2023

RJSI

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Stock exchanges worldwide are discovering the best possible outcomes that can increase trading options in financial assets for potential investors. The principal purpose of the study is to provide an efficient and stable picture of market capitalization of Pakistan Stock Exchange (PSX) with various macroeconomic variables, which can be helpful to local and foreign investors. The study analyzed the secondary data from 1992 to 2021. Based on the theoretical background, various diagnostics were applied, precisely (ARDL) Autoregressive Distributed Lag methodology. Empirical outcomes confirmed that hypotheses regarding (FPE) Foreign Portfolio Equity, Inflation, (FDI) Foreign Direct Investment, and (GFCF) Gross Fixed Capital Formation affect market capitalization of PSX with significant positive behavior. Only Exchange Rate has significant negative relationship with PSX market capitalization. This study suggests that PSX-listed companies and policymakers require significant attention to improve their operations and increase the market capitalization of firms to catch the capital from potential investors. The government should watch the exchange rate and inflation-controlling factors for the sustainable development of Pakistan in the long run. However, this study has various limitations, such as limited time, resources, and specific data.

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Foreign direct investment, stock market capitalization, and sustainable development: relative impacts of domestic and foreign capital

Cited by 11 publications

References 96 publications

Do Trade and Financial Cooperation Improve Environmentally Sustainable Development: A Distinction Between de facto and de jure Globalization

Do Trade and Financial Cooperation Improve Environmentally Sustainable Development: A Distinction Between de facto and de jure Globalization

Impact of Foreign Direct Investment on the Economic Growth of Nepal

Macroeconomic Factors Influencing Market Capitalization of Pakistan Stock Exchange (PSX)

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