Impact of Economic Openness and Innovations
on the Environment: a New Look
into ASEAN Countries

Hu, Xuhua; Ali, Najabat; Malik, Muhammad Ehsan; Hussain, Jamal; Jiang, Fengyi; Nilofar, Memoona

doi:10.15244/pjoes/130898

Cited by 41 publications

(24 citation statements)

References 42 publications

(50 reference statements)

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“…Green innovation has a significant inverse relationship with CO 2 emissions. Our findings of CCEMG are parallel with the results of Demena and Afesorgbor [34], Khan et al [77] and Hu et al [9].…”

Section: Robustness Analysissupporting

confidence: 91%

“…The findings show that a unit increase in FDI will raise 0.0269% emissions in BRICS countries. These results are parallel with the results of Demena and Afesorgbor [34] and Hu et al [9] According to the results, a unit increase in energy use will rise 0.786% in CO 2 emissions in the BRICS region. Similar results were also found by Khan et al [17].…”

Section: Findings Of Panel Amg Estimatorsupporting

confidence: 83%

“…Good environmental quality is linked with lower CO 2 emissions, while poor environmental quality is associated with higher CO 2 emissions [77][78][79]. Similarly, green innovation is measured in environmental technology patents, and it is observed as a positive and significant element of environmental quality [9,39]. Moreover, FDI, trade openness, GDP, and urbanization are the significant determinants of CO 2 emissions [77,80].…”

Section: Model Specificationmentioning

confidence: 99%

“…Researchers and policymakers have termed FDI as the primary economic growth tool and recognized it as an established source of employment and channel of technology transfer to its host economies [2][3][4][5][6][7]. On the other hand, the negative perspective regarding foreign direct investment is the potentially harmful environmental effects of FDI [8,9]. FDI enhances the production processes in the host countries, and can be detrimental to the environment.…”

Section: Introductionmentioning

confidence: 99%

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FDI, Green Innovation and Environmental Quality Nexus: New Insights from BRICS Economies

et al. 2022

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One major concern about foreign direct investment (FDI) is the potential negative environmental impact due to increased CO2 emissions. However, there is a possibility that FDI mitigates CO2 emissions through green innovation and creates a cleaner environment. In the existing literature, there is no significant empirical evidence on the linkage among FDI, green innovation and CO2 emissions in the context of BRICS countries. Hence, this study aims to analyze the impact of FDI and green innovation on the environmental quality of BRICS economies for 1990–2014. The study employed Augmented Mean Group (AMG) estimators for empirical data analysis. The study’s findings depict that foreign direct investment, energy use, and economic growth have a significant and positive impact on the CO2 emissions of BRICS economies. Moreover, green innovation has a significant inverse impact on CO2 emissions. The results show bidirectional causalities between CO2 emissions and green innovation, trade openness and CO2 emissions, energy use and CO2 emissions, and urbanization and CO2 emissions. Additionally, the findings reveal a one-way causality from CO2 emissions to GDP and CO2 emissions to urbanization. This study offers essential policy recommendations for the environmental sustainability of BRICS countries through green innovation.

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Section: Robustness Analysissupporting

confidence: 91%

Section: Findings Of Panel Amg Estimatorsupporting

confidence: 83%

Section: Model Specificationmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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FDI, Green Innovation and Environmental Quality Nexus: New Insights from BRICS Economies

et al. 2022

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“…Innovation is based on existing technological knowhow of a country (Schumpeter, 1947). Trade openness is a measure of the extent to which an economy is linked to other economies or opened to international trade (Hu, et al, 2021). This is considered as a channel through which external knowledge is imported into an economy.…”

Section: Empirical Model and Measuresmentioning

confidence: 99%

FDI Spillover Channel and its Effect on Innovation

Darfo-Oduro

Stejskal

2022

ECKM

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In an increasingly globalized environment, one of the important aspects for knowledge development and usage has been the advantage of benefiting from knowledge spillover across international boundaries. The knowledge literature recognizes the importance of the combining internal and external knowledge in the innovation process. Knowledge spillover from abroad is an important channel of external knowledge needed to complement the innovation activities in the domestic economies of countries. However, the complementarities of external knowledge and domestic innovation activities also remains a thorny issue that remain unresolved in the knowledge literature. On one hand, there is a believe that combinatorial efforts of domestic and foreign knowledge activities are a good recipe for innovation. There are other strands of literature that are concerned that when foreign knowledge is not complementary with domestic innovation activities increased innovation may not be realized. Contrary to the widely held view of the positive impact of FDI on host economies, the literature shows a rather complex relationship between FDI and economic outcomes in V4 countries. OECD countries, being the main trading partners of V4 countries, the study therefore investigates the FDI channel for knowledge spillover from OECD countries and how such knowledge spillover complements V4 countries innovation activities to affect innovation outcomes. Data for the study is panel data on the V4 countries, spanning 2003 to 2012 which is sourced from the OECD database. The study applies panel regression analysis and controls for country and time fixed effect to determine the role of FDI knowledge spillover from OECD countries on innovation outcome in V4 countries. The findings of the study indicate that proportionate change in innovation is greater than a proportionate change in FDI knowledge spillover in the opposite direction. The results of the analysis show that knowledge spillover from FDI does not complement V4 countries’ internal R&D activities to improve innovation. FDI knowledge spillover channel is not a good complement to domestic R&D activities to enhance V4 countries’ innovation performance. It is concluded that, FDI knowledge spillover channel does not complement innovation activities to improve innovation outcome. The study provides useful practical implications and recommendations.

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Do geopolitical risk and economic policy uncertainty cause CO2 emissions in BRICS? The role of institutional quality and energy productivity

Cui,

Wang,

Işık

et al. 2024

Stoch Environ Res Risk Assess

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Impact of Economic Openness and Innovations on the Environment: a New Look into ASEAN Countries

Cited by 41 publications

References 42 publications

FDI, Green Innovation and Environmental Quality Nexus: New Insights from BRICS Economies

FDI, Green Innovation and Environmental Quality Nexus: New Insights from BRICS Economies

FDI Spillover Channel and its Effect on Innovation

Do geopolitical risk and economic policy uncertainty cause CO2 emissions in BRICS? The role of institutional quality and energy productivity

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