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The impact of South-South and North-South FDI on energy intensity in developing countries

Author

Listed:
  • Dierk Herzer

    (Helmut-Schmidt-University Hamburg)

  • Niklas Schmelmer

    (Helmut-Schmidt-University Hamburg)

Abstract

This study is the first to examine the impact of both North-South FDI and South-South FDI on energy intensity in developing countries. It is also the first in the FDI-energy intensity literature to carefully control for the endogeneity of FDI using several IV techniques, as well as the first in this literature to use a panel Granger causality approach. We find that while South-South FDI contributes to reductions in energy intensity in developing countries, there is no evidence that North-South FDI reduces energy intensity in developing countries. This finding holds even when we use panel cointegration methods.

Suggested Citation

  • Dierk Herzer & Niklas Schmelmer, 2024. "The impact of South-South and North-South FDI on energy intensity in developing countries," Economics Bulletin, AccessEcon, vol. 44(4), pages 1367-1377.
    • Handle: RePEc:ebl:ecbull:eb-24-00267
    as

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    References listed on IDEAS

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    More about this item

    Keywords

    energy intensity; developing countries; South-South FDI; North-South FDI;
    All these keywords.

    JEL classification:

    • F2 - International Economics - - International Factor Movements and International Business
    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy

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