The Effect of Economic Growth, Foreign Direct Investment, and Energy Use on Environment Degradation: Evidenced from ASEAN Nations

2021 ◽  
Vol 9 (2) ◽  
pp. 114-124
Author(s):  
Baserat Sultana ◽  
Syeda Nida Raza ◽  
Kinza Rana ◽  
Aaqib Qayyum
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Carbon Emission ◽  
Energy Use ◽  
Chi Square ◽  
Positive Effects ◽  
The Impact ◽  
Environment Degradation

Literature evidenced that environmental degradation creates hurdles in economic development. So, this study highlights the leading macroeconomic indicators which affect the environment and investigates the nexus among FDI, energy utilization, economic development, and environmental pollution for ASEAN nations from 1990 to 2018. Panel Autor Regressive Distributive lag (ARDL) methodology is used to examine the impact of economic growth, foreign direct investment and energy use on environment degradation. Different panel unit roots (Im, Pesaran and Shin W-stat, Levin, Lin & Chu, ADF - Fisher Chi-square, PP - Fisher Chi-square) tests are applied to confirm the intergradation order, and results confirm that there exits I (0) and I(1) order of intergradation. There exists a unidirectional relationship between energy consumption and carbon emission of CO2 and CO2 to foreign direct investment in the long run. While in the short run, there does not exist any relationship. The results confirm the existence EKC hypothesis, which confirms there exits negative and positive effects of GDP and square of GDP on carbon emission. Hence this study concludes that its essential to develop some strategies and policies to guarantee economic stability. Additionally, reliable and sustainable power resources should be used for positive environmental changes. The carbon dioxide emission should be reduced for the GDP growth by utilizing different eco-technologies and renewable energy resources, which can nullify the effect of emission of CO2 to maintain the greenhouse environment.

scholarly journals Modeling the impact assessment of agricultural sector on economic development as a basis for the country’s investment potential

2019 ◽  
Vol 16 (3) ◽  
pp. 229-240
Author(s):  
Alina Bukhtiarova ◽  
Arsen Hayriyan ◽  
Victor Chentsov ◽  
Sergii Sokol
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Agricultural Sector ◽  
Negative Impact ◽  
Manufacturing Sector ◽  
Value Added ◽  
The Cost ◽  
The Impact

In the context of countries integration into the world economic space, agricultural sector is one of the priorities and strategically important sectors of the national economy. Development of instruments aimed to increase investment potential of this sector is therefore an important component of the country’s economy growth. The article proposes a science-based model of the impact of the agricultural sector on the economic development level of countries trying to move towards European integration.It was found that the employment rate (+58.4) has the largest influence on the rate of GDP change in the studied group of countries (Ukraine, Moldova, Georgia, Armenia). The impact of the gross value added of the manufacturing sector on its economic growth is positive (+44.6). The negative foreign direct investment ratio in the model (–40.3) may be due to the fact that the indicator in the studied countries is still largely influenced by the intervention of the state mechanism, significant uncertainty and risk, which is a deterrent to the overall economic development. An important result of the study was that foreign direct investment had a negative impact on economic growth in developing countries. Further development of the investment potential of a country’s agricultural sector provides for a radical acceleration of scientific and technological progress and, on this basis, a reduction in the cost of a unit of agricultural products and food and an increase in their competitiveness in the domestic and world markets.

scholarly journals Influence of Urbanization and Foreign Direct Investment on Carbon Emission Efficiency: Evidence from Urban Clusters in the Yangtze River Economic Belt

2021 ◽  
Vol 13 (5) ◽  
pp. 2722
Author(s):  
Shijian Wu ◽  
Kaili Zhang
Keyword(s):  
Economic Development ◽  
Foreign Direct Investment ◽  
Carbon Emissions ◽  
Direct Investment ◽  
Yangtze River ◽  
Carbon Emission ◽  
The Yangtze River ◽  
Urban Agglomerations ◽  
Emission Efficiency ◽  
The Impact

Reducing carbon emissions and realizing green, circular, and low-carbon development is essential for high-quality economic development. Following the construction of a superefficiency SBM model and combining the panel data of three major urban agglomerations in the Yangtze River Economic Belt from 2003 to 2017, carbon emission efficiency was measured and analyzed. A spatial Durbin model (SDM) was incorporated to analyze the urban agglomerations in the Yangtze River Economic Belt and the impact of urbanization quality and foreign direct investment (FDI) on carbon emission efficiency. Finally, the SDM model was used to decompose the spillover effect. Generally, carbon emission efficiency in the three major urban agglomerations in the Yangtze River Economic Belt is low, with regional differences. FDI only has a positive impact on the carbon emissions of the Yangtze River Delta and the middle reaches of the Yangtze River. Furthermore, urbanization and population density have led to high levels of carbon emission in the region; however, the industrial structure and energy intensity factors have inhibited the improvement of regional carbon emission efficiency. Improving the quality of urbanization and trade structure is important to achieve energy conservation and emission reductions, which are pillars of sustainable economic development.

scholarly journals THE IMPACT OF FOREIGN DIRECT INVESTMENT ON ECONOMIC GROWTH (A CAUSAL STUDY IN THE UNITED STATES)

2018 ◽  
Vol 4 (1) ◽  
Author(s):  
Donny Susilo
Keyword(s):  
United States ◽  
Economic Growth ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Multiple Linear Regression Model ◽  
The United States ◽  
Ordinary Least Squares ◽  
Development Effort ◽  
Positive Effects ◽  
The Impact

<p>International investment is strategic step for country due to lack of capital and technology transfer and it is generally well known as Foreign Direct Investment (FDI). Many policy makers and academics contend that FDI can have important positive effects on a host country’s development effort. This research examines the impact of Foreign Direct Investment on Economic Growth in the United States by multiple linear regression model and its estimation using ordinary least squares (OLS). This research classifies all the sectors to be 10 sectors. This research uses data for the period 2000 –2017 and suggests that not all forms of foreign investment seem to be beneficial to host economies. Some sectors provide positive correlation to economic growth and some provides negative effect. Nevertheless, it is significant yet, this is because there is different characteristic between developed and developing countries. Economic growth in the U.S is mostly driven by personal consumption.</p>

scholarly journals The Impacts of Human Resources and Foreign Direct Investments to Vietnam’s Economic Growth

2018 ◽  
Vol 8 (4) ◽  
pp. 125
Author(s):  
Nguyen Van Huong ◽  
Dang Quy Duong ◽  
Do Thi Thu Thuy
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Foreign Direct Investment ◽  
Human Resources ◽  
Direct Investment ◽  
Opposite Effect ◽  
Short Term ◽  
Short And Long Term ◽  
The Impact

Research on human resources, foreign direct investment and economic development are important issues in assessing the effectiveness of employment as well as attracting foreign direct investment (FDI) in the economy. In this study, the author analyzes the impact of human resource factors and FDI on economic growth in Vietnam from 1990 to 2017. By regression analysis based on the ARDL model, the result shows FDI has only a positive effect on economic growth in the short term but has the opposite effect in the long term. At the same time, unemployment rates have the opposite effect on economic growth in the short term. Average life expectancy does not affect economic growth in both the short and long term. From this result, the author also offers some suggestions for economic development in both the short and long term.

scholarly journals Foreign Direct Investment and Economic Growth of the Central and Southeast European Countries

2018 ◽  
Vol 15 (27) ◽  
Author(s):  
Vasilj Žarković ◽  
Dragan Gligorić ◽  
Nikola Žarković
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
European Integration ◽  
Direct Investment ◽  
The European Union ◽  
Economic Problems ◽  
Positive Effects ◽  
See Region ◽  
The Impact ◽  
Competitive Economy

Economic theory suggests that free capital flows increase the efficiency of the resource allocation and stimulate economic growth. Foreign direct investment (FDI) is seen as a remedy for all economic problems in countries that do not have a sufficient level of accumulation to start economic growth. According to economic criteria of Copenhagen, countries that are in the process of European integration should have a functioning market economy able to cope with competition and market forces within the European Union. The greatest expectations regarding the development of a competitive economy in the Southeast European (SEE) countries are precisely related to attraction and exploitation of the positive effects of FDI. This paper explores the impact of FDI on economic growth of the Central European (CE) countries and the SEE countries. The experience of the CE countries can be beneficial for the SEE countries following them in the process of European integration. The results show that FDI flows to the SEE region are significantly lower than to the CE region. Panel analysis has shown a statistically significant impact of FDI on economic growth inboth regions. However, in absolute terms the impact of FDI on economic growth inthe SEE region is almost negligible.

scholarly journals Mitigating Environmental Degradation With Institutional Quality and Foreign Direct Investment (FDI): New Evidence From Asymmetric Approach

2021 ◽  
Author(s):  
Edmund Ntom Udemba
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Renewable Energy ◽  
Direct Investment ◽  
Carbon Emission ◽  
Fossil Fuels ◽  
Negative Impact ◽  
Institutional Quality ◽  
Renewable Energy Consumption ◽  
The Impact

Abstract Chile is currently rated among the performing countries towards the achievement of the global goals of reducing carbon emission. It is on recorded that Chile as a country has moved from highly insufficient to insufficient and still working towards conforming to the recommend the region of 20C in quest of controlling climate change through carbon emission reduction. From this development, it is essential to investigate on the country’s strategies in achieving this success and equally make recommendation for other countries to adopt Chile’s strategy as a blue print in controlling carbon emission. To effectively do this and achieve the objective of this study, I adopt nonlinear and asymmetric approaches to have a combine (positive and negative) view of the reactions of the selected variable towards determining the impact of each variable towards curbing emission in Chile. Also, a careful selection of variable which includes economic growth (GDP per capita-Y), institutional quality, foreign direct investment (FDI), fossil fuels and renewable energy consumption was undertaken in this study. The focus was on the interaction of institutional quality and FDI towards ascertainment of environment performance. Chile’s quarterly data of 1996Q1 to 2018Q4 was utilized and the following findings were made: positive and negative shocks to the economic growth, institutional quality and renewable energy impacted favorably and negatively on Chile’s environment through reduction and promotion of emission respectively. In contrast, positive and negative shocks to FDI and fossil fuels impact both negatively on the Chile’s environment through increase in carbon emission. So institutional quality is vital in controlling the negative impact from FDI and fossil fuels.

scholarly journals THE EFFECT OF FOREIGN DIRECT INVESTMENT ON ECONOMIC GROWTH IN KOSOVO

2021 ◽  
Vol 5 (1) ◽  
Author(s):  
Isuf Qabrati
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Foreign Direct Investment ◽  
Financial Stability ◽  
Direct Investment ◽  
Economic Activities ◽  
Professional Management ◽  
Independent Variable ◽  
Countries In Transition ◽  
The Impact

Foreign direct investment plays a very important role in the economic development of countries, especially in countries in transition. Foreign direct investment is defined as any investment where the investor invests in a foreign country the factors of production including labor, financial capital, technology and professional management knowledge. FDI can ensure financial stability, promote economic development and improve social welfare. The purpose of this paper is to investigate the impact of FDI on Kosovo's economic growth, for the years 2007-2017. In particular, the paper aims to measure the effect that FDI has had on GDP over the years, examining the impact of FDI by economic activities on economic growth, expressed in GDP. Two basic variables were used: the independent variable (FDI) and the dependent variable (GDP). To measure the effect of the independent variable on the dependent variable, the data realized for these two variables were collected by the relevant public institutions. From the derived data, the results of the regression analysis show that FDI has a significant effect on economic growth. The change in economic growth depends almost entirely on the change in FDI by sectors of economic activity. JEL: E20, E22 <p> </p><p><strong> Article visualizations:</strong></p><p><img src="/-counters-/edu_01/0736/a.php" alt="Hit counter" /></p>

scholarly journals Foreign Direct Investment (FDI), Investment in Construction and Poverty in Economic Crises (Denmark, Italy, Germany, Romania, China, India and Russia)

Economies ◽  
2021 ◽  
Vol 9 (4) ◽  
pp. 152
Author(s):  
Tatyana Sukhadolets ◽  
Elena Stupnikova ◽  
Natalia Fomenko ◽  
Nadezhda Kapustina ◽  
Yuri Kuznetsov
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Foreign Direct Investment ◽  
Russian Federation ◽  
Direct Investment ◽  
Growth Patterns ◽  
Poverty Level ◽  
Northern Asia ◽  
The Russian Federation ◽  
The Impact

This study aims to examine the impact of foreign direct investment (FDI), investment in construction and poverty in various countries. The Russian Federation invests heavily in construction and it is located both in Europe and Asia. Russia is usually described as a European country (while 70% of its territory is in Northern Asia, 80% of the population resides in Europe). That is why in this document both developed and emerging countries are considered; the former are represented by the EU members of different economic levels and the latter by BRICS countries. We looked at economically different countries to determine the best differentiated data in order to answer the question: “Why does a high level of poverty persist in Russia if Russian officials have repeatedly reaffirmed their commitment to the implementation of the Sustainable Development Goals (SDGs) by investing heavily in construction and attracting FDI?”. For the estimation, we used an autoregressive distributed lag (ARDL), considering cointegration and heteroscedasticity, in which the current values of the series depend both on the past values of this series and on the current and past values of other time series. Having received statistical data, we were able to compare the economic development of countries with some economic growth theories. 4–5% FDI share of the GDP helps to contain the negative impact of financial crises. Investment in construction supports the economies of countries in the long term and maintains or reduces the poverty level by increasing the assets of the population. Empirical data also helped us to evaluate the economic growth patterns and poverty in these seven countries. China and the Russian Federation will find themselves at different “poles”. China uses several theories and models simultaneously for economic development and poverty reduction and the Russian Federation does not keep to an established theory or a model of economic growth.

scholarly journals Does Greenfield Foreign Direct Investment Inflow contribute in Socioeconomic Development? Empirical Evidence from Developing Countries

2021 ◽  
Vol 9 (3) ◽  
Author(s):  
Shahid Akbar ◽  
Ali Raza ◽  
Zahid Raza
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Economic Development ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Developing Economies ◽  
Dependent Variables ◽  
Socio Economic Development ◽  
The Impact ◽  
Positive Effect

This study aims to assess the impact of Greenfield-Foreign Direct Investment (FDI) inflows on the socio-economic development of ten developing countries. Developing economies rely on investment from developed countries, especially Greenfield investment. Greenfield investment is the new capital inflow to the host country's economy that helps to improve economic activities, boosts economic growth, and improves socio-economic welfare. This study has used Greenfield investment as the target-independent variable and other controlled variables remittances, aid, inflation, population, and trade openness. At the same time, socio-economic development, health, economic growth, and education are dependent variables. For this purpose, Pooled Mean Group (PMG) technique/Panel Autoregressive-Distributed Lag (ARDL) has applied for estimation purposes from 1990 to 2017. The empirical findings have shown that Greenfield-FDI has a long-term statistically significant and positive effect on economic growth, health, education, and socio-economic development. In comparison, remittances and official development assistance have positive and negative impacts on the study's dependent variables. The population also has a positive effect, whereas inflation and trade have mixed results. Outcomes of this study advise that policymakers should adopt attractive investment policies to enhance more foreign investment and utilize it efficiently, thereby promoting sustainable development. The government should announce firms to invest in human capital, which will impact productivity.   

scholarly journals The Influence of Foreign Direct Investment Treatment in Domestic Legislation on the Economic Development of the Republic of Serbia

2020 ◽  
Vol 58 (4) ◽  
pp. 501-516
Author(s):  
Milica Vukajlović ◽  
Tamara Milenković Kerković ◽  
Dragana Radenković Jocić
Keyword(s):  
Economic Development ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Foreign Direct Investments ◽  
Subsidy Policy ◽  
Positive Effects ◽  
Domestic Legislation ◽  
Leading Position ◽  
The Republic ◽  
The Impact

Abstract Serbia has been following a policy of subsidizing foreign direct investments since 2006 and it pays great attention to this type of investment capital in the field of development of our economy. Whether this can be considered as justified is a question to which this paper aims to provide an answer. Do the positive aspects of foreign direct investment necessarily come to the leading position in the country importing capital? The analysis of the positive effects of foreign direct investments on the economy of the host country shows that the multiple benefits of such attracted capital certainly exist, but that their manifestation is not unconditional and will depend on numerous factors. Due to the fact that the subsidy policy is current, the criteria for granting state incentives defined by the current regulation should be set so as to contribute to the manifestation of positive effects of foreign direct investments on the Serbian economy. However, their analysis shows that this is not the case. In addition, the impact that foreign direct investment has had on the Serbian economy indicates that the subsidy policy has not given the expected results. Having this in mind, the impact that the treatment of foreign direct investments in domestic legislation has on the economic development of the Republic of Serbia cannot be assessed as satisfactory.

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