Networks, stocks, and climate change: A new approach to the study of foreign investment and the environment

The Nexus between Foreign Direct Investment, Open Commerce, ICT Taxation and Climate Change in a Developing Country

“…country. This observation is consistent with the recent investigations of Jorgenson et al (2022); Mohsin et al (2022); Tiwari et al (2022). Table 4 also demonstrates a link between CO2 emissions and open commerce, which is insignificantly extremely weak but negative.…”

“…Traditional energy resources, such as fossil fuels, are seen as contributors to ecological catastrophe. Jorgenson et al (2022) took a fresh look at the relationship between FDI and the ecosystem. The study found that both the concentration of inward FDI and a country's place in the international FDI network could either expedite ecologically sustainable ripple effects and technological upgrading or result in the outsourcing and detachment of carbon-intensive and ecologically untenable financial transactions.…”

“…In other words, the environmental implications, whether positive or negative, are potentially greater for states that hold more important positions in the global FDI network, as well as for nations with comparatively higher levels of inbound FDI. Several contemporary studies have found that FDI increases CO2 emissions (Jorgenson et al, 2022;Mohsin et al, 2022;Tiwari, Nasreen, & Anwar, 2022), whereas others (Danish, 2019;Murshed, 2020) have claimed that ICT reduces CO2 emissions. Tsaurai and Chimbo (2019) stated that financial development causes an increase in CO2 pollution in the environment.…”

“…Moreover, the ICT development tax factor in Nigeria is evaluated in conjunction with the other study variables. Jorgenson et al (2022) developed cross-national latitudinal estimates of total carbon dioxide emissions and carbon dioxide emissions per unit of GDP to evaluate hypotheses about the influence of FDI, ICT, and open commerce on the climate. Their results demonstrated that, for the whole sample of nations, both pollution concentrations and FDI internet backbone density were strongly associated with inbound FDI stocks, but that these positive correlations were much higher for regions of the world other than the Global North areas.…”

The harmful effects of primary sector foreign direct investment on carbon dioxide emissions in developing countries, 2000–2018

“…This variable is log-transformed to address excessive skew. Foreign direct investment stocks as a percentage of GDP is one of the most commonly used measures of foreign investment dependency theory (e.g., Clark and Kentor 2022;Clark and Kwon 2018;Dixon and Boswell 1996a;Jorgenson et al 2022;Kentor 1998Kentor , 2001Kentor and Boswell 2003;Mejia 2022b). I obtain the primary sector foreign direct investment data from the ICT (2021), which is a commonly used source of country-level data on foreign investment disaggregated by economic sector (e.g., Long, Stretesky, and Lynch 2017).…”