Does FDI foster technological innovations? Empirical evidence from BRICS economies

Ali, Najabat; Phoungthong, Khamphe; Khan, Anwar; Abbas, Shah; Dilanchiev, Azer; Tariq, Shahbaz; Sadiq, Muhammad

doi:10.1371/journal.pone.0282498

Cited by 44 publications

(22 citation statements)

References 77 publications

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“…Foreign direct investment (FDI) frequently entails the exchange of cutting-edge technologies and management strategies, leading to enhanced resource utilization and a diminished ecological footprint in industries that adopt environmentally sustainable technologies [125]. Innovation driven by foreign direct investment (FDI) can also contribute to the advancement and widespread use of environmentally friendly technologies [126]. Foreign direct investment (FDI) plays a crucial role in facilitating the transfer of technology to locally owned companies in the host country.…”

Section: Discussionmentioning

confidence: 99%

Nexus between Innovation–Openness–Natural Resources–Environmental Quality in N-11 Countries: What Is the Role of Environmental Tax?

Qamruzzaman,

Karim,

Kor

2024

Sustainability

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This research investigates the intricate relationship between financial openness, natural resources, and carbon neutrality in the N-11 countries. It provides insights into how environmental tax and innovation can drive carbon neutrality in these nations, thus advancing our understanding of the nexus among financial openness, natural resources, and carbon neutrality. The study aims to offer policymakers perspectives on formulating policies to foster sustainable economic development and environmental conservation in the N-11 nations. The discourse highlights the environmental implications of foreign direct investment (FDI) and trade openness, revealing a complex interplay between economic development, technological innovation, and environmental sustainability. While FDI can facilitate technological transfers and managerial advancements that enhance resource efficiency and promote environmentally friendly practices, its environmental impact varies based on regulatory frameworks and enforcement mechanisms. In countries with weak environmental regulations, FDI may lead to negative outcomes such as pollution hotspots, resource depletion, and ecosystem degradation. Similarly, trade openness can exacerbate environmental degradation through increased production, energy consumption, and waste generation. However, both FDI and trade openness can contribute positively to environmental sustainability when coupled with effective environmental policies, investment in green technology, and the promotion of sustainable practices. Thus, policymakers must strike a balance between economic development and environmental protection by implementing stringent environmental regulations, promoting clean technology transfer, and fostering sustainable development practices domestically and internationally. This research offers valuable insights for policymakers aiming to navigate the complexities of achieving carbon neutrality while ensuring sustainable economic growth in the N-11 countries.

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Section: Discussionmentioning

confidence: 99%

Nexus between Innovation–Openness–Natural Resources–Environmental Quality in N-11 Countries: What Is the Role of Environmental Tax?

Qamruzzaman,

Karim,

Kor

2024

Sustainability

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“…FDI has the potential to enhance innovation performance through its facilitation of technology transfer, knowledge spillovers, and competitiveness. These mechanisms encourage local enterprises to engage in innovation activities and adjust their operations to align with global norms and practices (Ali et al, 2023). Moreover, FDI frequently facilitates the acquisition of capital and fosters chances for collaboration, stimulating innovation inside the host nations.…”

Section: Methodsmentioning

confidence: 99%

Climate policy uncertainty and regional innovation performance: New empirical evidence from the United States

Farooq,

Shafiq,

Subhani

et al. 2024

Manage Decis Econ

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This study aims to explore the empirical relationship between climate policy uncertainty (CPU) and regional innovation performance. The empirical analysis was conducted on 36 years of available data over the period 1987 to 2022 in the United States (US). By using an autoregressive distributed lag (ARDL) model for regression analysis, we examine the impact of CPU on two crucial indicators of innovation, namely, research and development (R&D) expenditures and patent applications (PTA). The empirical analysis reveals a significant negative effect of CPU on both R&D expenditures and PTA, suggesting that higher levels of climate uncertainty may hinder innovation activities in the regional context. A high CPU introduces hesitancy and risk aversion, impacting the allocation of resources, confidence in markets, and the willingness of businesses to pursue innovative endeavors. The negative effect remains consistent even after the inclusion of several control variables and robustness checks. The findings underscore the significance of a stable and supportive policy environment and economic conditions in promoting innovation. Overall, this research provides valuable empirical evidence on the interplay between CPU and innovation outcomes, offering insights for policymakers, businesses, and researchers seeking to navigate the complexities of climate‐related challenges and their impact on innovation. We did not find any study exploring the comparable impact of CPU on innovation.

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“…Increased trade openness could lead to heightened competition from more affordable, non-renewable energy sources in international markets, potentially reducing the demand for renewable energy options. Furthermore, trade agreements and policies may not consistently prioritize sustainability or renewable energy development, potentially hindering the connection between trade openness and REC (6,133,134). Overall, the negative coefficients of UR, GCF, and TO indicate the challenges associated with promoting renewable energy consumption in urbanization, capital formation, and trade openness.…”

Section: Estimation and Interpretationmentioning

confidence: 99%

Nexus between financial development, foreign direct investment, and renewable energy consumption: Evidence from SSA

Md. Qamruzzaman

2024

GSC Adv. Res. Rev.

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This study examines the nexus between urbanization (UR), gross capital formation (GCF), trade openness (TO), and renewable energy consumption (REC) to understand their interplay and implications for renewable energy adoption. Analyzing the data reveals a negative correlation between UR, GCF, TO, and REC, highlighting challenges in promoting renewable energy amidst urbanization, capital formation, and global trade integration. Policy interventions are crucial to address barriers hindering renewable energy uptake. Recommendations include incentivizing foreign direct investment, enhancing technology transfer, incentivizing clean energy investments, and promoting financial literacy. Integrated urban planning and alignment of capital formation policies with renewable energy goals are essential strategies to accelerate renewable energy adoption. This study offers valuable insights for policymakers and stakeholders seeking to promote renewable energy development and sustainability.

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Does FDI foster technological innovations? Empirical evidence from BRICS economies

Cited by 44 publications

References 77 publications

Nexus between Innovation–Openness–Natural Resources–Environmental Quality in N-11 Countries: What Is the Role of Environmental Tax?

Nexus between Innovation–Openness–Natural Resources–Environmental Quality in N-11 Countries: What Is the Role of Environmental Tax?

Climate policy uncertainty and regional innovation performance: New empirical evidence from the United States

Nexus between financial development, foreign direct investment, and renewable energy consumption: Evidence from SSA

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