The asymmetric relationship between foreign direct investment, oil prices and carbon emissions: evidence from Gulf Cooperative Council economies

Ashraf, Sania; Jithin, P; Umar, Zaghum

doi:10.1080/23322039.2022.2080316

Cited by 18 publications

(12 citation statements)

References 62 publications

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“…Weak pollution controls provide comparative advantage and competitiveness to developing countries, and hence, they specialize and export dirty goods to developed nations. It is also argued that developing countries may intentionally keep their environmental controls weak to become the stronger candidate for FDI inflows (Ashraf et al 2022 ). Poor environmental control in developing countries also means that consumers in developed countries will enjoy the consumption of pollution-intensive goods at cheaper prices (Gill et al 2018 ).…”

Section: Review Of Literaturementioning

confidence: 99%

FDI and CO2 emissions in developing countries: the role of human capital

2023

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FDI inflows remain an important source of economic growth and technology transfer for developing countries. However, the proponents of the pollution haven hypothesis (PHH) argue that FDI inflows may result in the production of polluted goods in poor economies. The empirical testing of PHH reveals conflicting outcomes on the subject. This study argues that foreign firms’ choice of specific technologies and hence the validity of PHH can be determined by host countries’ level of education. For developing economies having low levels of schooling, FDI inflows will accompany polluted technologies. Nonetheless, when education levels exceed certain thresholds, FDI inflows may reduce CO 2 emissions. For our empirical investigation, we rely upon a large panel of 108 developing countries during 2000–2016. Our estimated outcomes, based on the panel cointegration method and panel vector error correction methods (P-VECM), confirm these moderating effects of human capital in the FDI–CO 2 emissions nexus. The empirical results also confirm the presence of the environmental Kuznets curve (EKC) for developing countries. These results have important policy implications for the sample economies.

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Section: Review Of Literaturementioning

confidence: 99%

FDI and CO2 emissions in developing countries: the role of human capital

2023

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“…In an article examining the asymmetric non-linear relationship between FDI, oil prices and CO 2 emissions for the Gulf countries, Ashraf et al, (2022) concluded that FDI is positively associated with carbon dioxide emissions in the long run, and oil prices have a positive and significant effect on CO 2 emissions.…”

Section: Carrilmentioning

confidence: 99%

Impact of Oil Factor on Investment: The Case of Azerbaijan

Humbatova

Huseyn

Hajiyev

2023

IJEEP

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This article investigates the long-term and short-term interactions between crude oil prices, crude oil exports, and domestic and foreign investment in Azerbaijan using annual data from 1999 to 2021. In this research, the ARDL model was used to assess co-integration and short-term relationships. In addition, this study used the FMOLS, DOLS, and CCR co-integration equations to explore long-term coefficients between variables. Granger causation tests were performed, Granger causation analysis was assessed using the Wald test (short-term or weak causation, long-term causation, and both short-term and long-term causation or strong causal relationship). The study proposed 9 hypotheses regarding the impact of oil prices and oil exports on domestic and foreign investment. Some of the hypotheses were generally, if not completely, justified. Based on the established models and tests carried out, there are co-integrating relationships between the variables. Model coefficients are selected according to their economic and statistical significance. It is necessary to increase competition for the market between foreign and domestic investments, not only through the exchange rate, but also through other economic instruments. The study revealed the importance of the exchange rate of the Manat.

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“…Nevertheless, to our knowledge, a few studies demonstrate the connection between MEQ 35,1 "ecological footprint (EF)", "Human capital (HC)" "GDP" and "energy use (EC)" (Ivanovski and Hailemariam, 2022;Rafique et al, 2022;Udemba, 2020), and a very few studies have been conducted on environmental quality and accounting metrics like an "ecological footprint". The previous studies primarily focussed on one facet of EC, such as oil (Ashraf and Umar, 2022;Samargandi, 2021) or petroleum usage (Rashid et al, 2018), to examine its environmental impact. In contrast, we used EC, a broader term, whilst studying the nexus between EF and GDP per capita in the context of India (US Energy Information Administration, 2018).…”

Section: Introductionmentioning

confidence: 99%

Towards environmental sustainability: nexus of ecological footprint, human capital, economic growth and energy consumption in India

Ritu,

Kaur

2023

MEQ

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PurposeThe research is geared towards studying the impact of “GDP per capita (GDP)”, “energy consumption (EC)”, “human capital (HC)” and “trade openness (TO)” on India's ecological footprint (EF) from 1997–1998 to 2019–2020.Design/methodology/approachThe autoregressive distributed lag model (ARDL) bound test was used to look at the short-run and long-term coefficients and the cointegration of the variables.FindingsThe results depicted a long-run connection between the variables. The long-run results found a favourable relationship between GDP, EC and EF, indicating that economic growth through heavy reliance on fossil fuels contributes to environmental unsustainability. An inverse relationship between HC, TO and EF was also observed, indicating that education fosters pro-environmental behaviour and leads to adopting cleaner technology that contributes to environmental sustainability.Research limitations/implicationsThe research substantiates India's pressing requirement for sustainable development, ensuring a harmonious balance between economic performance and environmental preservation. A carefully designed policy needs to be formulated to mitigate emissions stemming from growth in India. Policymakers are urged to implement measures that promote ecologically friendly tools, utilities and transportation to curb long-term environmental degradation.Originality/valueThe study is novel, incorporating an exhaustive review using Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA). This study further examines how India's EF is affected by its HC; the preceding literature has yet to discuss much about the connection between HC and the environment. Finally, the study employed advanced econometric techniques, namely the cointegration technique and ARDL model, to find the relationship between EF, GDP, HC, EC and TO.

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The asymmetric relationship between foreign direct investment, oil prices and carbon emissions: evidence from Gulf Cooperative Council economies

Cited by 18 publications

References 62 publications

FDI and CO2 emissions in developing countries: the role of human capital

FDI and CO2 emissions in developing countries: the role of human capital

Impact of Oil Factor on Investment: The Case of Azerbaijan

Towards environmental sustainability: nexus of ecological footprint, human capital, economic growth and energy consumption in India

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