Foreign Direct Investment, Trade Openness, Energy Consumption and CO2 Emission: Evidence from Iran and Saudi Arabia

2020 ◽  
Vol 12 (1) ◽  
pp. 1
Author(s):  
Sedigheh Atrkar Roshan ◽  
Zeinab Adinehvand ◽  
Mozhgan Sobhani
Keyword(s):  
Saudi Arabia ◽  
Foreign Direct Investment ◽  
Energy Consumption ◽  
Direct Investment ◽  
Co2 Emission ◽  
Trade Openness

scholarly journals Environmental Pollution a Negative Externality from China Pakistan Economic Corridor (CPEC): Policy implications for Pakistan

2020 ◽  
Vol 11 (3) ◽  
pp. 5-8
Author(s):  
Rehmat Karim ◽  
Faqeer Muhammad ◽  
Javed Akhter Qureshi ◽  
Naveed Razzaq ◽  
Akber Ali
Keyword(s):  
Foreign Direct Investment ◽  
Energy Consumption ◽  
Environmental Pollution ◽  
South Asia ◽  
Direct Investment ◽  
Global Economy ◽  
Middle Eastern ◽  
Trade Openness ◽  
Policy Implications ◽  
The Impact

The China-Pakistan Economic Corridor (CPEC) isconsidered as the ‘flagship’ project of China’s Belt andRoad Initiative (BRI) and has been widely acclaimedby both Chinese and Pakistani officials often terming itas ‘game-changer’ to overcome Pakistan’s lingeringissues of energy and economic crisis. Within theframework of CPEC, China is investing more than 56billion US dollars as Foreign Direct Investment (FDI)in various energy and infrastructure projects includinga vast network of railways, highways, economic zonesand gas pipelines. While much has been debated andwritten about various projects under CPEC in theexisting academic discourses, vis-à-vis threats to thebiodiversity (Nabi et al., 2017), its potentialimplications to environmental hazards (Ali, 2018) andto overcome energy shortfall of Pakistan (Kugelman,2017). However, scientific study to reinforce the issuesof environmental pollution, particularly related toCEPEC coal-based energy projects have been stilllacking.The pertained literature on CPEC consisted qualitativestudies to inspect and judge different aspects such asimportance of CPEC for both countries and its effectson geo political of South Asia. Challenges for CPEC inPakistan, South Asia and foreign policy betweenChina-Pakistan), as Nan, (2015) explained that thisproject is not only valuable for Pakistan and China, butit is also beneficial for the global economy byincluding several other countries. Furthermore, Li andSun, (2015) and Irshad, etal, (2015) reported theimportance of CPEC and it long and short-termbenefits for both countries. Further, Hussain and Khan(2017) also stated that it will enhance the cooperationbetween two countries and advantageous for Chinese,Middle Eastern and South Asian people (Ali, 2016).Further, Wolf, (2017) explained the insights, potentialsand challenges concerning CPEC and domestic levelcooperation between China and Pakistan.In addition, quantitative studies focused to shed a lighton the impact of China Pakistan Economic Corridor(CPEC) (Such as, impact on gdp, socio-economy,trade, stock market, energy sector and infrastructure).CPEC will build rails and roads infrastructure andinfrastructure development may decrease the povertyand increases the agriculture development in Pakistan(Ahmed & Mustafa, 2016). Most recent articleexamined the impact of CPEC impact on energy(energy consumption and energy saving potential) inthe prospect of Pakistan (Mirza, Fatima, Ullah, 2019).A latest study surveyed in Pakistan and their researchresults shows that entrepreneur’s attitude andintentions to China and Pakistan Economic Corridor(CPEC) development is positive, it means CPECproject also designing an entrepreneurial environment(Kanwal et al., 2019).A large number of studies (Begum, etal., 2015; Ozturk,and Acaravci, 2010) have discussed various elementsand causes of CO2 emissions. Similarly, manyresearches (Khurshid, etal., 2018; Hadi, etal., 2018;Hussain, 2017; Hussain, 2015) on Pakistan-Chinarelations in the context of economy, society andgeopolitical point of view. Present study is aimed toinvestigate the CPEC development effects i.e. grossdomestic product (gdp), foreign direct investment (fdi),trade openness (top), energy consumption (enguse) onenvironmental pollution (CO2) in Pakistan usingFMOLS and DOLS methods.

scholarly journals Determinants of Foreign Direct Investment in Saudi Arabia: A Review

2017 ◽  
Vol 9 (7) ◽  
pp. 222
Author(s):  
Haga Elimam
Keyword(s):  
Economic Growth ◽  
Saudi Arabia ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Trade Openness ◽  
Maximum Flow ◽  
International Capital ◽  
Host Government ◽  
The Government

Foreign direct investment is identified as the major tool for the movement of international capital. Thus, the study has employed a review research to examine the determinants of foreign direct investment in Saudi Arabia. The results are significant as they have contributed towards determinants of foreign direct investment by comparing with previous studies. The results showed that trade openness, infrastructure availability, and market size play significant role in attracting foreign direct investment within a country. The inflow of foreign direct investment has a potential to benefit the investing entity as well as the host government. It also renders economic growth and socioeconomic transformation of the country. The flow of foreign direct investment in Saudi Arabia is affected by several factors including growth rate, GDP, exports and imports. It is the duty of the government to ensure the attractiveness of their country to maintain maximum flow of foreign direct investment, as it promotes sustained long-term economic growth by increased investment in the human capital.

scholarly journals Environmental Degradation in Indonesia and Malaysia: The Effect of Energy Consumption, Economic Growth, Population, and Foreign Direct Investment (FDI)

2020 ◽  
Vol 13 (2) ◽  
pp. 160
Author(s):  
Ahmad Farabi ◽  
Azrai Abdullah
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Energy Consumption ◽  
Natural Gas ◽  
Co2 Emissions ◽  
Direct Investment ◽  
Co2 Emission ◽  
Fossil Fuel ◽  
Environmentally Friendly ◽  
Annual Data

The main objective of this study is to examine how energy consumption, economic growth, population, and foreign direct investment (FDI) affects CO2 emissions in Indonesia and Malaysia. This study uses the longest and most updated annual data during the period 1960-2018. To get a deeper analysis, this study employs disaggregate of CO2 emissions and energy consumption data namely, oil, coal and natural gas. The ordinary least square which preceded by unit root test and classical assumption test are employed. The results show that all type of energy consumption affect positively to CO2 emission. Economic growth is identified as the variable with greatest influences on CO2 emissions in oil and natural gas model, while CO2 emissions from coal consumption are mainly affected by populations. The study concludes that economic growth of both countries relies heavily on fossil fuel. CO2 emission sourced from coal mostly affected by population due to the high demand of electricity from household fulfilled by power generation which use coal as the fuel. The EKC hypothesis is confirmed in the model of gas, indicate that natural gas is the most appropriate source of energy to be used at the certain level. Using natural gas is effectively decrease the CO2 emission while in the same time increase the economic growth. Natural gas is also found as the most environmentally friendly fossil fuel due as it produces less CO2 emission compared to oil and coal. The findings have important implications for policy makers in determining policy and business decisions especially to enhance environmentally friendly energy uses for the benefit of the economy.

scholarly journals The Economic Determinants of the CO2 Emission in Saudi Arabia: The role and impact: المحددات الاقتصادية لانبعاثات ثاني أكسيد الكربون في المملكة العربية السعودية "الدور والأثر"

2019 ◽  
Vol 3 (12) ◽  
Author(s):  
Amal Hassan ALmalki, Nahla Sadrudden Samargandi, Abla Abdulh
Keyword(s):  
Economic Growth ◽  
Carbon Dioxide ◽  
Saudi Arabia ◽  
Foreign Direct Investment ◽  
Carbon Dioxide Emissions ◽  
Direct Investment ◽  
Trade Openness ◽  
Electricity Consumption ◽  
Economic Determinants

This study examined the impact of a number of economic determinants such as economic growth, electricity consumption, foreign direct investment, financial development, trade openness and their contribution to increase or decrease of carbon dioxide (CO2) emissions in Saudi Arabia. To explore the long-run relationships between the variables, the autoregressive distributed lag (ARDL) methodology, is employed to analyze time series data for the period 1980-2017. Results indicates that there has is a long-term positive relationship between electricity consumption, economic growth, trade openness, and carbon dioxide emissions. A long-term negative relationship is existed between both foreign direct investment and the financial development, and carbon dioxide emissions. Therefore, we see how important it is to reduce dependence on fossil fuels and switch to renewable energy in electricity production. This indicates the importance of Vision 2030 to reduce dependence on oil as a major source of income and to support economic growth by developing the non-oil sector. And the importance of raising the efficiency of funding and providing the necessary liquidity to support the industrial sectors with the imposition of strict environmental laws.        

scholarly journals Is Achieved Economic Development Environment Friendly? A New Insight From Central and Eastern Europe

2021 ◽  
Author(s):  
Qianxiao Zhang ◽  
Syed Ale Raza Shah ◽  
Syed Asif Ali Naqvi
Keyword(s):  
Economic Development ◽  
Foreign Direct Investment ◽  
Energy Consumption ◽  
Direct Investment ◽  
Ecological Footprint ◽  
Trade Openness ◽  
Outward Foreign Direct Investment ◽  
Renewable Energy Consumption ◽  
Resource Rents ◽  
Natural Resource Rents

Abstract Over the last few years, the linkage between economic development and environmental degradation has become a provocative question. Although this nexus has been studied vastly, some of the critical variables of economic development and their impacts on the environment need more focus. The present study explores the association between economic development, outward foreign direct investment, financial development, renewable energy consumption, natural resource rents, trade openness, and ecological footprint in Central and Eastern European economies. The panel data estimators such as augmented mean group and common correlated effect mean group are employed from 1990 to 2017. Empirical findings document that outward foreign direct investment, financial development, trade openness, natural resource rents, and renewable energy consumption increase economic development, implying that they positively affect economic development. Findings validate the inverted U-shaped EKC for concerned economies in case of the ecological footprint. The results show that the interaction term of GDPC with NR, outward foreign direct investment, and RE are eco-friendly indicators. The study results develop imperative policy implications for the selected region to attain sustainable development goals.

Technology Gap

2022 ◽  
pp. 415-438
Author(s):  
Ritu Rana ◽  
Manoj Sharma ◽  
Ajay Singh
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Energy Consumption ◽  
Direct Investment ◽  
Trade Openness ◽  
Research Work ◽  
Technology Gap ◽  
Trade Model ◽  
Pollution Haven ◽  
Information And Communication

This chapter extends the authors' previous research work in which an examination of causality was conducted between foreign direct investment (FDI), economic growth (GDP), and the environment (CO2 emissions and energy consumption [EC]) in the Indian context. Two more important variables (i.e., trade openness and technology gap) were also added. The chapter further examines the effects of information and communication technology (ICT) trade on both GDP and the environment of India. The results of previous model show that FDI is neither causing GDP nor is it bridging the technology gap. The results also indicate the existence of pollution haven hypothesis (PHH) in India as FDI is causing both CO2 and EC. Also, FDI is, though not causing the GDP directly, doing so indirectly through CO2 validating the existence of PHH. FDI is causing trade openness in India, but that openness is again causing more FDI, which is doing no good for India. The results of ICT trade model indicate that both GDP and ICT exports cause CO2 in India. Also, both the GDP and ICT exports are consuming energy in India.

ANALISIS DETERMINAN KUALITAS LINGKUNGAN PERIODE 1999-2013

2016 ◽  
Vol 21 (1) ◽  
pp. 9-20
Author(s):  
Ersalina Tang
Keyword(s):  
Foreign Direct Investment ◽  
Energy Consumption ◽  
Gross Domestic Product ◽  
Co2 Emissions ◽  
Direct Investment ◽  
Meat Consumption ◽  
Domestic Product ◽  
World Data ◽  
The World ◽  
The Impact

The purpose of this study is to analyze the impact of Foreign Direct Investment, Gross Domestic Product, Energy Consumption, Electric Consumption, and Meat Consumption on CO2 emissions of 41 countries in the world using panel data from 1999 to 2013. After analyzing 41 countries in the world data, furthermore 17 countries in Asia was analyzed with the same period. This study utilized quantitative approach with Ordinary Least Square (OLS) regression method. The results of 41 countries in the world data indicates that Foreign Direct Investment, Gross Domestic Product, Energy Consumption, and Meat Consumption significantlyaffect Environmental Qualities which measured by CO2 emissions. Whilst the results of 17 countries in Asia data implies that Foreign Direct Investment, Energy Consumption, and Electric Consumption significantlyaffect Environmental Qualities. However, Gross Domestic Product and Meat Consumption does not affect Environmental Qualities.

scholarly journals Empirical Research on the Relationship amongst Renewable Energy Consumption, Economic Growth and Foreign Direct Investment in Kazakhstan and Uzbekistan

Energies ◽  
2021 ◽  
Vol 14 (2) ◽  
pp. 332
Author(s):  
Janusz Grabara ◽  
Arsen Tleppayev ◽  
Malika Dabylova ◽  
Leonardus W. W. Mihardjo ◽  
Zdzisława Dacko-Pikiewicz
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Renewable Energy ◽  
Energy Consumption ◽  
Direct Investment ◽  
Renewable Energy Sources ◽  
Energy Sources ◽  
Renewable Energy Consumption ◽  
Integration Test ◽  
The Relationship

In this contemporary era, environmental problems spread at different levels in all countries of the world. Economic growth does not just depend on prioritizing the environment or improving the environmental situation. If the foreign direct investment is directed to the polluting industries, they will increase pollution and damage the environment. The purpose of the study is to consider the relationship between foreign direct investment in Kazakhstan and Uzbekistan and economic growth and renewable energy consumption. The study is based on data obtained from 1992 to 2018. The results show that there is a two-way link between foreign direct investment and renewable energy consumption in the considered two countries. The Granger causality test approach is applied to explore the causal relationship between the variables. The Johansen co-integration test approach is also employed to test for a relationship. The empirical results verify the existence of co-integration between the series. The main factors influencing renewable energy are economic growth and electricity consumption. To reduce dependence on fuel-based energy sources, Kazakhstan and Uzbekistan need to attract energy to renewable energy sources and implement energy efficiency based on rapid progress. This is because renewable energy sources play the role of an engine that stimulates the production process in the economy for all countries.

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