Evaluation of the triangle-relationship of industrial pollution, foreign direct investment, and economic growth in China’s transformation

Zhang, Juanfeng; Han, Rui; Song, Zongjun; Zhang, Lihua

doi:10.3389/fenvs.2023.1123068

Cited by 4 publications

(2 citation statements)

References 98 publications

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“…While several studies [ 39 , 49 , 71 – 75 ] have found a positive and significant long-run relationship between FDI and CO 2 emissions, we found a negative but highly significant (p≤0.01) relationship between the two in the case of GCC countries. Such a negative influence of FDI on CO 2 emissions is in harmony with the findings obtained very recently by [ 38 , 76 – 80 ]. Usually, high CO 2 emissions due to the absence of regulatory carbon emission policy instruments discourage inward FDI, and hence, a negative influence of FDI on CO 2 emissions is a likely outcome.…”

Section: Discussionsupporting

confidence: 91%

“…On the contrary, they found the association between FDI and financial development significant and negative. Another recent study on China by [ 38 ] evaluating the triangle-relationship of industrial pollution, FDI, and economic growth. This study analyzes data obtained from 30 Chinese provinces during the period 2006–2017 using GMM regression.…”

Section: Literature Review and Hypotheses Formulationmentioning

confidence: 99%

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Determinants that attract and discourage foreign direct investment in GCC countries: Do macroeconomic and environmental factors matter?

Alharthi,

Islam,

Alamoudi

et al. 2024

PLoS ONE

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In general, foreign direct investments (FDIs) play a crucial role in driving a country’s economic development, promoting diversification, and enhancing competitiveness. The Gulf Cooperation Council (GCC) countries, which heavily rely on the oil and gas sectors, are particularly vulnerable to fluctuations in commodity prices. However, these countries have recognized the imperative of economic diversification and have increasingly turned to inward FDIs to achieve it. By attracting capital, advanced technology, and expertise from foreign investors, FDIs enable the GCC countries to expand their economic base beyond the oil and gas sectors. This diversification not only creates employment opportunities but also fosters resilient economic growth, ultimately leading to an improvement in the living standards of the local population. This study investigates the macroeconomic and environmental factors that potentially attract foreign direct investment (FDI) inflows into the Gulf Cooperation Council (GCC) countries in the long run. Additionally, the study explores the causal relationship between these factors and FDI inflows. The panel autoregressive distributed lag (ARDL) approach to co-integration is the primary analytical technique used, utilizing long time-series data from six GCC countries, including Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates (UAE) during the period 1990–2019. The empirical results indicate that, in the long run, almost all independent variables significantly influence FDI in GCC countries. Variables such as GDP growth (GDPG), inflation (INFL), carbon dioxide emissions (CO2), and urbanization (URB) are found to be highly significant (p≤0.01) in their impact on FDI. Moreover, unemployment (UNEMP) also positively and significantly influences FDI in these countries in the long run. Based on the key findings, strategies aimed at reducing persistently high unemployment rates, maintaining population growth, viewing FDI as a driver for GDP growth, and continuing with infrastructure development and urbanization are expected to attract more FDI inflows into GCC countries in the long run. Additionally, fostering both long-term economic incentives and creating a conducive business infrastructure for investors are vital for attracting inward FDI into any nation, including those in the GCC. This research would benefit various stakeholders, including governments, local businesses, investors, academia, and the local society, by providing valuable knowledge and informing decision-making processes related to economic development, diversification, and investment promotion.

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Section: Discussionsupporting

confidence: 91%

Section: Literature Review and Hypotheses Formulationmentioning

confidence: 99%

Determinants that attract and discourage foreign direct investment in GCC countries: Do macroeconomic and environmental factors matter?

Alharthi,

Islam,

Alamoudi

et al. 2024

PLoS ONE

View full text Add to dashboard Cite

show abstract

Sustainable Energy Usage for Africa: The Role of Foreign Direct Investment in Green Growth Practices to Mitigate CO2 Emissions

Kouassi,

Xu,

Bosah

et al. 2024

Energies

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In line with Africa’s commitment to keeping up with the United Nations Framework Convention on Climate Change, achieving a sustainable future requires balancing economic growth with environmental sustainability. This study investigates the long-term impacts of foreign direct investment, economic growth, agricultural production, and energy consumption on CO2 emissions across 43 African nations from 1990 to 2021. Despite significant research on the individual effects of these factors, the combined influence on CO2 emissions remains underexplored. Addressing this gap, this study employs cross-sectional augmented distributed lag estimators (CS-DL and AMG) and updated estimation packages to effectively examine the relationships between variables. Our findings are as follows: firstly, economic growth and energy use was shown to have a significant positive influence on CO2 in the long term. Also, foreign direct investment significantly promotes CO2 emissions. Secondly, the causality test shows a unidirectional causal relationship between CO2 emissions and foreign direct investment. The test also revealed a bidirectional relationship between GDP and CO2 emissions, as well as between energy consumption and CO2 emissions. Again, a bidirectional causation was observed between agricultural production and CO2 emissions. Thirdly, the impulse response analysis shows that GDP will contribute more to emissions over the 10-year forecast period. This study also proposes policy implications to lessen CO2 across the continent and advocates for the judicious adoption of existing policy frameworks like the 2030 Agenda for environmental Sustainability.

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Foreign Direct Investment and Sustainable Development in Asia: Bibliometric Analysis and Systematic Literature Review

Rodríguez-Chávez,

Oré-Evanán,

Zapata-Sánchez

et al. 2024

Sustainability

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Through SDG 17, the United Nations 2030 Agenda highlights the importance of international cooperation to promote sustainable development. Following the COVID-19 pandemic, this cooperation has gained greater relevance, exacerbating the need for debt relief and financial assistance for developing countries. Although global Foreign Direct Investment (FDI) increased by 3% in 2023, investments in developing countries decreased by 9%, with Asia being the most affected region. This article addresses the research gap of a bibliometric study and systematic review on the contribution of FDI to sustainable development, covering economic, social and environmental dimensions. In order to examine the existing literature, a general bibliometric analysis and a systematic review were conducted, using databases such as Scopus and Web of Science, examining studies published between 2019 and early 2024. The bibliometric analysis revealed that Asia is the most studied region, while the systematic review of 48 articles showed that the economic and environmental dimensions are the most researched, with the social dimension being the least addressed. Accordingly, we suggest several directions for future research that could enrich and strengthen the field.

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Evaluation of the triangle-relationship of industrial pollution, foreign direct investment, and economic growth in China’s transformation

Cited by 4 publications

References 98 publications

Determinants that attract and discourage foreign direct investment in GCC countries: Do macroeconomic and environmental factors matter?

Determinants that attract and discourage foreign direct investment in GCC countries: Do macroeconomic and environmental factors matter?

Sustainable Energy Usage for Africa: The Role of Foreign Direct Investment in Green Growth Practices to Mitigate CO2 Emissions

Foreign Direct Investment and Sustainable Development in Asia: Bibliometric Analysis and Systematic Literature Review

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