The current study explores the effect of Foreign Direct Investment (FDI) on CO2 emissions in Azerbaijan utilizing time series data spanning from 1996 to 2013. The structural time series modeling (S...

The FDI-CO2 nexus from the sustainable development perspective: the case of Azerbaijan

This study aims to understand the negative impacts of carbon emission on the foreign direct investments. For this purpose, a comparative analysis is performed for both E7 and G7 countries. In the analysis process, Pedroni panel cointegration (PPC), Kao panel cointegration (KPC), and Dumitrescu Hurlin panel causality (DHPC) analyses are taken into consideration. The findings indicate that carbon emission has a negative influence on foreign direct investments for both country groups. Nonetheless, this relationship is stronger for G7 economies. It is also identified that there is no causality relationship between these variables. It is recommended that the countries should generate appropriate policies to minimize carbon emission problem. Within this context, new tax can be implemented for the companies that lead to high carbon emission. Additionally, governments can give incentives to the projects that aim to decrease carbon emission. In this scope, decreasing tax ratio and providing a technical support can be given as examples.

The Negative Effects of Carbon Emission on FDI: A Comparative Analysis Between E7 and G7 Countries

Based on the panel data of 30 provinces (except for Tibet, Hong Kong, Macao, and Taiwan) in China from 2005 to 2016, a nonlinear threshold regression model and a carbon emission expansion models were constructed to empirically analyze the threshold effect of inward foreign direct investment (IFDI) and outward foreign direct investment (OFDI) on carbon dioxide emission intensity in China. The results show that (1) China's OFDI has increased carbon dioxide emission intensity while the IFDI has a significant inhibitory effect on carbon dioxide emission intensity. (2) The impact of the OFDI on carbon dioxide emission intensity gets influenced by the threshold effect of population size, economic development level, technology level, and environmental regulation. (3) The impact of the IFDI on carbon dioxide emission intensity also has threshold characteristics affected by population size, economic development level, and technological level. Hence, China should introduce more IFDI, optimize the structure of the OFDI, and exert its environmental improvement effect to satisfy the carbon emission reduction goal earlier.

Inward foreign direct investment, outward foreign direct investment, and carbon dioxide emission intensity-threshold regression analysis based on interprovincial panel data.

This study evaluates the impact of outward foreign direct investment (OFDI), human well-being, and other macro indicators of the public sector on carbon footprint. Empirical analysis has been carried out for newly industrialized economies that span the period 1990–2017. We used augmented mean group and bootstrap panel causality techniques to cogitate the cross-sectional dependence and country-specific heterogeneity. Based on cross-country analysis, study results show that growing OFDI reduces carbon footprint efficiently in Mexico and Turkey, human well-being decreases emissions in the Philippines, and urbanization reduces emissions in China. Further, technology reduces emissions in Malaysia and Turkey, trade openness reduces emissions in China and Malaysia, and natural resource rents reduce emissions in Indonesia and Mexico. In the case of panel analysis, the moderating role of OFDI with human well-being is contributing toward a sustainable environment. Moreover, the moderation of OFDI and urbanization has an insignificant impact on CFP. Findings depict that interaction terms of OFDI with technology and trade openness have a positive association with the environment quality. Finally, OFDI and natural resources have positive moderation on CFP. This study contributes to the existing literature by suggesting policy implications for a sustainable environment.

The Contribution of Outward Foreign Direct Investment, Human Well-Being, and Technology toward a Sustainable Environment

Impacts of two-way foreign direct investment on carbon emissions: from the perspective of environmental regulation

Based on the data of 30 Chinese provinces for the period from 2004 to 2015, this paper expounds the carbon emissions effect of two-way foreign direct investment (FDI) from the perspective of scale ...

A study on the factor market distortion and the carbon emission scale effect of two-way FDI

The need to balance economic growth and its environmental impact continues to be a serious issue in China. As environmental regulation in China increases in importance, it is critical to understand how it impacts economic growth drivers such as outward foreign direct investment (OFDI) to formulate effective policies. One consideration should be the hidden economy, which can weaken the effects of environmental regulation on OFDI. This study investigates the scale of the hidden economy in 30 provinces and province-level municipalities in China in the period 2004 to 2015. The study uses the multiple indicators and multiple causes (MIMIC) model and the systematic generalized method of moments (GMM) test to analyze the impact of environmental regulation and the hidden economy on China's OFDI. The results show that stronger environmental regulation promotes OFDI. However, the hidden economy inhibits China's OFDI, as the positive effects of environmental regulation that drive OFDI are distorted. From a regional perspective, stronger environmental regulation promotes OFDI as well, while the hidden economy inhibits it. The interaction between environmental regulation and the hidden economy also inhibits it significantly.

Haiyun Liu

Papers

A study on the factor market distortion and the carbon emission scale effect of two-way FDI

Environmental regulation, hidden economy, and China's outward foreign direct investment