Can The Balanced Combination of Eco-innovation, Foreign Investments, And Carbon Emission In Space and Time Develop Economic Growth And Simultaneously Preserve the Quality Environment?

Abstract

Environmental concerns have steadily caught attention as economic growth has developed more rapidly. Eco-innovation, foreign investment, and carbon emissions have lately climbed to the top of research topics since they influence environmental quality. Nevertheless, there is scarce knowledge about the spatial perspective and the impact of the combined mechanisms of eco-innovation, FDI, and carbon emissions in developing nations. This paper uses the geographic Durbin model to examine the combined effect of eco-innovation, carbon emission, and FDI effects on GDP in nine MENA countries from 2000 to 2019. The study results are as follows: (i) Eco-innovation, FDI, and carbon emissions positively and directly impact GDP, (ii) carbon emissions are the most critical driver that impacts economic growth, and (iii) the balanced combination of driving factors of economic growth positively and directly impacts GDP. Therefore, this balanced combination effect impacts economic growth, improves environmental quality, and embarks on a sustainable transition path.