Most of the Latin American Countries have witnessed high economic growth in the last few decades. FDI is a key factor in achieving the exponential economic prosperity in these countries. Besides, the positive effect on economic growth, it also contributes to energy consumption and helps in the extraction of natural resources to the host country. This study examines the nexus between FDI, energy consumption, natural resource, and economic growth in Latin American countries for the period of 1990 to 2018. We apply Structural Equation modeling approach to examine the relationship among these variables. The empirical results suggest that FDI, Energy consumption and Natural resources have significant and positive association with Economic growth in Latin American countries. Likewise, FDI and Energy consumption also show positive and significant effect on Natural resource, while FDI show a positive and statistically significant effect on Energy consumption. The results imply that to fuel the fast-paced economic growth, the respective governments in these countries need to reform their energy sectors by tapping renewable energy resources and deploy green technologies with a view to avoid environmental degradation. In addition, respective government in this region should formulate robust business strategies and environment to encourage FDI inflow.
A huge foreign direct investment (FDI) inflow has been witnessed in China, though on the one hand, it brings a significant contribution to economic growth. On the other hand, it adversely affects the ambient air pollution that may affect human mortality in the country. Renewable energy (RE) usage meets the country's energy needs with no adverse effect on the environment. Therefore, this study is trying to empirically analyze the effect of FDI inflow on human morality and RE consumption in China. We used time-series data for 1998–2020 and applied a non-linear ARDL approach for the estimations. The empirical outcomes suggest that FDI inflow positively affects mortality and RE. There is also unidirectional causality running from RE and pollution to mortality. In addition, the relationship among the variable verifies the existence of a non-linear relationship. The government needs policy guidelines to further boost FDI inflow due to its positive aspects. However, to reduce the negative effect on the environment and human morality, the extensive usage of RE should be adopted. Indeed, proper legislation for foreign firms might be a good step toward quality environmental and longevity of human health in society.
Objective
Most of the Southeast Asian countries witnessed remarkable economic growth in the last few decades. Trade is a primary factor in achieving this exponential economic progress in these countries. Besides, the positive implications of trade, it has associated cost of escalated energy consumption, CO
2
emissions, and resulting health complications which leads to higher public health expenditures. This study examines the nexus between trade liberalization, energy consumption, CO
2
emissions, and health expenditures in Southeast Asian countries for the period of 1991 to 2018.
Methods
The empirical methods used in this study entail diagnostic testing, correlation analysis, and structure equation modeling (SEM) technique. SEM is an advanced multivariate analysis technique that can test complex multivariate causal associations among a set of variables. Therefore, it is the most suitable econometric approach to explore the dynamic association between trade openness, energy consumption, CO
2
emissions, and health expenditures.
Results
The empirical results reveal a nexus between trade openness, energy consumption, CO
2
emissions, and health expenditure in Southeast Asian countries. Nevertheless, pollutant emissions have a direct impact on health expenditures, whereas trade and energy consumption shows an indirect influence on the escalation in public health spending in sample Southeast Asian countries. Moreover, the mediating path of each indirect effect is energy consumption.
Conclusion
These results imply that Southeast Asian countries heavily rely on fossil energy to fuel economic growth. Hence, to promote sustainable and eco-friendly economic development, the respective governments need to reform their energy sectors by tapping into renewable energy resources and deploy green technologies to reduce pollutant emissions for the development of a healthy society. In addition, governments should levy taxes on highly polluting industries so as to curtail carbon emissions and resulting health expenditures.
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