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Exploring the Links between Renewable Energy, FDI, Environmental Degradation, and International Trade in Selected Developing Countries

Author

Listed:
  • Ismat Nasim

    (Department of Economics, The Government Sadiq College Women University, Bahawalpur, Pakistan,)

  • Mohamed Boukhris

    (Prince Mohammad Bin Fahd University, Khobar, Saudia Arabia,)

  • Umar Nawaz Kayani

    (College of Business, Al Ain University, Abu Dhabi, UAE,)

  • Farrukh Bashir

    (School of Economics, Bahauddin Zakaria University, Multan, Pakistan,)

  • Syed Arslan Haider

    (Department of Management, Sunway Business School, Sunway University, No 5, Jalan Universiti, Bandar Sunway, Malaysia.)

Abstract

Trade may be significantly impacted by Foreign Direct Investment (FDI), which refers to investments made outside of the investor's place of origin. Carbon emissions, in particular those that are the result of industrial activity and transportation, have the potential to have a number of important effects on commerce on both the national and international levels. The environmental, economic, and social repercussions of these effects are intricately interwoven with one another. Because it has an immediate bearing on a nation's production capacity, level of competitiveness, and the kinds of products and services that may be exported from or imported into the nation, the value added in industry has a considerable influence on international commerce. The level of government spending may have a considerable impact on the way a nation does in terms of commerce. There are several facets of commerce that might be affected, either favorably or badly, by the method that a government utilizes to distribute its money. The current study aims to examine the linkages among renewable energy, FDI, Environmental degradation and their impact on trade. The findings of study are obtained from a panel of 58 developing countries from 2000 to 2022. The results of Panel unit roots and Kao co-integration tests recommend to apply the panel ARDL to get the empirics of desirable relationships. The results of the study recommend that it is essential for governments to find a balance when making choices about their expenditures in order to guarantee that the resources allotted support sustainable economic growth, improve trade competitiveness, and fit with larger development goals. Spending decisions made by the government that are both strategic and well-targeted have the potential to play a significant part in improving the economic performance of a nation and its integration into the global economy.

Suggested Citation

  • Ismat Nasim & Mohamed Boukhris & Umar Nawaz Kayani & Farrukh Bashir & Syed Arslan Haider, 2023. "Exploring the Links between Renewable Energy, FDI, Environmental Degradation, and International Trade in Selected Developing Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 13(6), pages 418-429, November.
    • Handle: RePEc:eco:journ2:2023-06-44
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    Cited by:

    1. Farrukh Nawaz Kayani & Ismat Nasim & Khalil Abu Saleem, 2024. "Analyzing the Impact of Governance, Environment and Trade on Inward FDI: A Case of Cambodia, Thailand and Vietnam from ASEAN," International Journal of Energy Economics and Policy, Econjournals, vol. 14(2), pages 523-534, March.
    2. Shahida Suleman & Mohamed Boukhris & Umar Nawaz Kayani & Hassanudin Mohammad Thas Thaker & Calvin W. H. Cheong & Abduraawf Hadili & Shehnaz Tehseen, 2024. "Are Trade Openness Drivers Relevant to Carbon Dioxide Emission? A Study of Emerging Economies," International Journal of Energy Economics and Policy, Econjournals, vol. 14(2), pages 183-196, March.
    3. Shahida Suleman & Farrukh Nawaz & Mariam Sohail & Umar Kayani & Hassanudin Mohd Thas Thaker & Calvin Cheong Wing Hoh, 2024. "An Empirical Analysis of Trade Market Dynamics on CO2 Emissions: A Study of GCC Economies," International Journal of Energy Economics and Policy, Econjournals, vol. 14(6), pages 114-126, November.
    4. Samrena Jabeen & Ismat Nasim & Furrukh Bashir & David Chaloupský & Ahsan Akbar, 2024. "The Impact of Fossil Fuel Energy, Technological Innovation and Globalization on Tourism Inflows of Top Ten Most Visited Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 14(3), pages 664-671, May.
    5. Umar Nawaz Kayani & Roohi Mumtaz & Mochammad Fahlevi & Hassan Nasseredine & Acep Hadinata, 2024. "Unbridling the Economic Growth and Environmental Nexus in Pakistan," International Journal of Energy Economics and Policy, Econjournals, vol. 14(1), pages 488-495, January.
    6. Haider Mahmood & Muhammad Tanveer, 2024. "Examining the Role of Women’s Labor Participation in CO2 Emissions in Saudi Arabia," International Journal of Energy Economics and Policy, Econjournals, vol. 14(3), pages 102-108, May.

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    More about this item

    Keywords

    Renewable Energy; FDI; Environmental Degradation; International Trade; Government Expenditure;
    All these keywords.

    JEL classification:

    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • Q59 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Other
    • B22 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Macroeconomics

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