scholarly journals The energy consumption-environmental quality nexus in BRICS countries: the role of outward foreign direct investment

2021 ◽  
Author(s):  
Saileja Mohanty ◽  
Narayan Sethi
Keyword(s):  
Foreign Direct Investment ◽  
Energy Consumption ◽  
Environmental Quality ◽  
Direct Investment ◽  
Outward Foreign Direct Investment ◽  
Brics Countries

The Energy Consumption-Environmental Quality Nexus in BRICS Countries: The Role of Outward Foreign Direct Investment (OFDI)

2021 ◽  
Author(s):  
Saileja Mohanty ◽  
Narayan Sethi
Keyword(s):  
Developing Countries ◽  
Foreign Direct Investment ◽  
Energy Consumption ◽  
Environmental Quality ◽  
Direct Investment ◽  
Early Stage ◽  
Outward Foreign Direct Investment ◽  
Stage Of Development ◽  
Long Run

Abstract This paper examines the role of outward foreign direct investment (OFDI) on energy consumption and environmental quality in BRICS from 1990 to 2019. We use cross-sectional dependence (CSD) and the Pesaran-Yamagata slope homogeneity for the diagnostic test. After confirming the diagnosis test, we employ CIPS and CADF second generation panel unit root test, which confirms that all elements are stationary at first difference. The Pooled Mean Group (PMG), Westerlund cointegration, two-step GMM, panel FMOLS and DOLS model have been used to determine the short term and long-term association among the variables. The cointegration and PMG results confirm that the short-run and long-run association exists among the considered variables. The GMM and DOLS results reveal that developing countries produced environmental pollution at the early stage of development and checked in the long run. The empirical results hold up the EKC hypothesis, which implies that OFDI and energy consumption help expand greener technology to host countries' environmental improvement in the long run and confirm that an inverted U-shaped linkage exists. Hence, the study suggests that developing countries should pay more attention to sustainable development and technological development that encourages more eco-friendly and environment-friendly technology. To frame the profitable strategies, governments of emerging countries should inspire public-private partnerships to circulate the environmental consciousness, guideline for energy efficiency, and generate a pollution-free environment.

Technological innovation policy and Chinese heterogeneity enterprises' outward foreign direct investment

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jinjing Zhao ◽  
Jongchul Lee
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Innovation Policy ◽  
Local Economy ◽  
Outward Foreign Direct Investment ◽  
Central State ◽  
Chinese Enterprises ◽  
Content Type ◽  
Privately Owned

PurposeThe study aims to analyze the role of the Made in China 2025 (MIC2025) initiative in China's Outward Foreign Direct Investment (OFDI) and the factors affecting the success or failure of Chinese enterprises' OFDI from the perspectives of the heterogeneity of home country enterprises.Design/methodology/approachBased on data on China's OFDI obtained from the China Global Investment Tracker (CGIT), the study uses the difference-in-differences model to analyze 2,670 completed OFDI deals and 211 failed OFDI deals by Chinese enterprises, from 2009 to 2018.FindingsThe study found that the effect of MIC2025 on Chinese enterprises' OFDI varies according to the ownership structure of the home country's enterprises. For successful OFDI, MIC2025 significantly impacted central state-owned enterprises (CSOEs), while it did not significantly influence local SOEs and privately owned enterprises. For failed OFDI, the MIC2025 plan only increased the failure of CSOEs' OFDI for the technology-seeking motivation in high-income host countries. Further, the investment options of local SOEs differ from those of CSOEs. Considering their aim to drive the local economy and seek profits, they are more similar to those of privately owned enterprises.Originality/valueThis study used a new database (i.e. the CGIT) to analyze Chinese enterprises' OFDI. It discussed the role of MIC2025 for different enterprises from the perspectives of successful and failed OFDI. It thus provided a new basis for analyzing policy affecting the OFDI of Chinese enterprises.

scholarly journals Unleashing the Indirect Influence of FDI in Environmental Degradation via Financial Development and Economic Growth. New Evidence from Asian Countries

2021 ◽  
Author(s):  
Ghulam Muhmmad Qamri ◽  
Bing Sheng ◽  
Rana Ejaz Ali Khan ◽  
Wasisfah Hanim
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Financial Development ◽  
Environmental Degradation ◽  
Environmental Quality ◽  
Direct Investment ◽  
The Political ◽  
Asian Countries ◽  
Mediating Role

Abstract Background:Scholars in developed and emerging economies have widely tested the interactions between foreign direct investment, financial development, economic growth and environmental degradation. Despite a number of empirical and review studies, it is not yet wrap up either the associations are negative, positive, direct or indirect. Additionally, minor attention is given to the indirect role of foreign direct investment in environmental degradation; perhaps no study has yet demonstrated the mediating role of financial development and economic growth between foreign direct investment and environmental degradation in Asian economies. Referring to the fragmented outputs and consequences as well as lacking the indirect role, the present study examines the influence of foreign direct investment on environmental degradation with the mediating role of financial development and economic growth. Results:Secondary data of 21 Asian countries from 1980-2018 were gathered from World Bank Indicators and then performed STATA to test the paths. Our findings are slightly different from the studies conducted in developed economies. The results indicate that foreign direct investment significantly improves environmental quality by deteriorating environmental pollution. It also significantly improves economic growth in the selected regions. Surprisingly, our study shows that foreign direct investment has a significant negative influence on financial development in the Asian regions. Both financial development and economic growth significantly negatively influence environmental degradation in Asian regions. However, financial development partially mediates while economic growth does not play any mediating role between foreign direct investment and environmental degradation in the Asian countries. Trade openness and population growth as control factors do not show any significant role in the model. Conclusions:This research recommends policymakers to focus on the inflow of foreign direct investment in order to enhance economic growth and environmental quality. It is strongly suggested for policymakers to attenuate the political intervention (e.g. ensure the political stability) in the inflow of foreign direct investment, so financial resources can be impartially distributed in the industrial sector and thus the nations will have an effective financial development system. Other implications have described.

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