Revisiting the Nexus between Economic Policy Uncertainty, Financial Development, and FDI Inflows in Pakistan during Covid-19: Does Clean Energy Matter?

Abstract

The significance of FDI for economic progress has been well established, especially for developing nations; conversely, the critical role of macro determinants has also been explained in attracting FDI. the motivation of the study is to assess the impact of economic policy uncertainty, financial development and clean energy on FDI in Pakistan economy. the study employed several econometric tools in assessing and documenting the elasticities of EPU, FD and CE in the process of amplifying the inflows of FDI in Pakistan. According to the study findings, it is apparent that financial development and clean energy positively affect FDI, while the effects of EPU are established as adversely connected to FDI. Study findings suggest, in Pakistan, for attracting and targeting the continual inflows of FDI, it is imperative to offer economic sustainability and efficient financial intermediation.

Nexus between Green Investment, Fiscal Policy, Environmental Tax, Energy Price, Natural Resources, and Clean Energy—A Step towards Sustainable Development by Fostering Clean Energy Inclusion

“…This underscores the significance of augmenting investments in RE initiatives, such as wind farms and solar installations, to foster a sustainable energy landscape for the future. The findings above align with the current body of literature that underscores the significance of green initiatives in facilitating the uptake of clean energy technologies [20,[30][31][32][33][34][35]. However, it is imperative to thoroughly evaluate the implementation challenges and barriers that could impede the effective execution of GI initiatives.…”

“…Fiscal policy refers to strategic measures that are undertaken by the government, such as taxation and expenditure, to influence economic conditions and achieve policy objectives. In the context of clean energy, fiscal policy can incentivize the adoption of renewable energy sources and discourage using environmentally harmful energy sources [31,63]. Environmental taxes are levies imposed on activities or commodities that harm the environment.…”

Institutional quality-led Technological Innovation in Lower-income nations: Does Trade and Education matter

“…R&D investment and innovation performance provide great potential for the economic development of enterprises and countries. Whether the technologies are imported or developed independently, enterprises can increase their competitiveness and market shares by applying patented technologies [23,35,[52][53][54]. For countries, the economic effect of innovation requires the joint role of infrastructure, policies, and incentive systems.…”