IDEAS home Printed from https://ideas.repec.org/a/mgs/ijmsba/v1y2015i6p118-126.html
   My bibliography  Save this article

Variance Decomposition of Emissions, FDI, Growth and Imports in GCC countries: A Macroeconomic Analysis

Author

Listed:
  • Ahmed Saddam

    (Faculty of Administration and Economics, University of Basrah, Iraq)

Abstract

This paper provides an empirical evidence of the variance decomposition of carbon dioxide emissions, FDI inflows, GDP per capita and imports in GCC countries; UAE, Bahrain, Saudi Arabia, Oman, Qatar and Kuwait. The method adopted is based on the Vector Error Correction Model (VECM). It examined a 256 observation for the duration 2000 – 2010. We found that FDI inflows have a significant variance to GDP. And the increase of level of carbon dioxide emissions is highly related to FDI and commodity imports in which GCC economies have not taken into account in their environmental consideration. The study is valuable for organizations and government policy-makers given that the importance of industry engagement for organizational outcomes has been confirmed. Correspondingly, significant implications for organizations exist, as they are aware of which parts of their operations and conditions will drive relevant talent to engage in the organizations’ work. This paper provides an empirical evidence of the variance decomposition of carbon dioxide emissions, FDI inflows, GDP per capita and imports in GCC countries; UAE, Bahrain, Saudi Arabia, Oman, Qatar and Kuwait. The method adopted is based on the Vector Error Correction Model (VECM). It examined a 256 observation for the duration 2000 – 2010. We found that FDI inflows have a significant variance to GDP. And the increase of level of carbon dioxide emissions is highly related to FDI and commodity imports in which GCC economies have not taken into account in their environmental consideration. This paper provides an empirical evidence of the variance decomposition of carbon dioxide emissions, FDI inflows, GDP per capita and imports in GCC countries; UAE, Bahrain, Saudi Arabia, Oman, Qatar and Kuwait. The method adopted is based on the Vector Error Correction Model (VECM). It examined a 256 observation for the duration 2000 – 2010. We found that FDI inflows have a significant variance to GDP. And the increase of level of carbon dioxide emissions is highly related to FDI and commodity imports in which GCC economies have not taken into account in their environmental consideration.

Suggested Citation

  • Ahmed Saddam, 2015. "Variance Decomposition of Emissions, FDI, Growth and Imports in GCC countries: A Macroeconomic Analysis," International Journal of Management Science and Business Administration, Inovatus Services Ltd., vol. 1(6), pages 118-126, May.
    • Handle: RePEc:mgs:ijmsba:v:1:y:2015:i:6:p:118-126
    DOI: 10.18775/ijmsba.1849-5664-5419.2014.16.1010
    as

    Download full text from publisher

    File URL: http://researchleap.com/wp-content/uploads/2015/06/10.-Variance-Decomposition-of-Emissions-FDI-Growth-and-Imports-in-GCC-countries-A-Macroeconomic-Analysis.pdf
    Download Restriction: no
    File URL: http://researchleap.com/variance-decomposition-of-emissions-fdi-growth-and-imports-in-gcc-countries-a-macroeconomic-analysis/
    Download Restriction: no
    File URL: https://libkey.io/10.18775/ijmsba.1849-5664-5419.2014.16.1010?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Ahmed Saddam & Fatimah Kari, 2012. "Size of Economy, Cost of Transport and their impact on Trade in GCC countries: Evidence from qualitative and quantitative approaches," Journal of Finance and Investment Analysis, SCIENPRESS Ltd, vol. 1(3), pages 1-8.
    2. Mohammed Redha Qader, 2009. "Electricity Consumption and GHG Emissions in GCC Countries," Energies, MDPI, vol. 2(4), pages 1-13, December.
    3. de Bruyn, S. M. & van den Bergh, J. C. J. M. & Opschoor, J. B., 1998. "Economic growth and emissions: reconsidering the empirical basis of environmental Kuznets curves," Ecological Economics, Elsevier, vol. 25(2), pages 161-175, May.
    4. Stern, David I. & Common, Michael S. & Barbier, Edward B., 1996. "Economic growth and environmental degradation: The environmental Kuznets curve and sustainable development," World Development, Elsevier, vol. 24(7), pages 1151-1160, July.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kaika, Dimitra & Zervas, Efthimios, 2013. "The environmental Kuznets curve (EKC) theory. Part B: Critical issues," Energy Policy, Elsevier, vol. 62(C), pages 1403-1411.
    2. G. Mythili & Shibashis Mukherjee, 2011. "Examining Environmental Kuznets Curve for river effluents in India," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 13(3), pages 627-640, June.
    3. Datu Buyung Agusdinata & Rimjhim Aggarwal & Xiaosu Ding, 2021. "Economic growth, inequality, and environment nexus: using data mining techniques to unravel archetypes of development trajectories," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(4), pages 6234-6258, April.
    4. Valeria Costantini & Chiara Martini, 2010. "A Modified Environmental Kuznets Curve for sustainable development assessment using panel data," International Journal of Global Environmental Issues, Inderscience Enterprises Ltd, vol. 10(1/2), pages 84-122.
    5. Matias Piaggio & Emilio Padilla & Carolina Roman, 2015. "The long-run relationshiop between C02 emissions and economic activity in a small open economy: Uruguay 1882-2010," Working Papers wpdea1506, Department of Applied Economics at Universitat Autonoma of Barcelona.
    6. Sabuj Kumar Mandal & Devleena Chakravarty, 2017. "Role of energy in estimating turning point of Environmental Kuznets Curve: an econometric analysis of the existing studies," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 19(2), pages 387-401, October.
    7. Devleena Chakravarty & Sabuj Kumar Mandal, 2019. "Environmental Kuznets curve for local and global pollutants: application of GMM and random coefficient panel data models," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 21(2), pages 212-233, December.
    8. Fodha, Mouez & Zaghdoud, Oussama, 2010. "Economic growth and pollutant emissions in Tunisia: An empirical analysis of the environmental Kuznets curve," Energy Policy, Elsevier, vol. 38(2), pages 1150-1156, February.
    9. He, Jie & Richard, Patrick, 2010. "Environmental Kuznets curve for CO2 in Canada," Ecological Economics, Elsevier, vol. 69(5), pages 1083-1093, March.
    10. Andreas Pyka & Uwe Cantner & Alfred Greiner & Thomas Kuhn (ed.), 2009. "Recent Advances in Neo-Schumpeterian Economics," Books, Edward Elgar Publishing, number 12982.
    11. Barra, Cristian & Zotti, Roberto, 2016. "Investigating the impact of national income on environmental pollution. International evidence," MPRA Paper 74149, University Library of Munich, Germany.
    12. Jean-Paul Chavas, 2004. "On Impatience, Economic Growth and the Environmental Kuznets Curve: A Dynamic Analysis of Resource Management," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 28(2), pages 123-152, June.
    13. José Carlos Araújo Amarante & Cássio da Nóbrega Besarria & Helson Gomes de Souza & Otoniel Rodrigues dos Anjos Junior, 2021. "The relationship between economic growth, renewable and nonrenewable energy use and CO2 emissions: empirical evidences for Brazil," Greenhouse Gases: Science and Technology, Blackwell Publishing, vol. 11(3), pages 411-431, June.
    14. Inmaculada Martinez-Zarzoso & Leon Pilgrim, 2023. "Revisiting the link between income inequality and emissions," Working Papers 2023.04, International Network for Economic Research - INFER.
    15. Stern, David I., 2002. "Explaining changes in global sulfur emissions: an econometric decomposition approach," Ecological Economics, Elsevier, vol. 42(1-2), pages 201-220, August.
    16. Roger Perman & David I. Stern, 2003. "Evidence from panel unit root and cointegration tests that the Environmental Kuznets Curve does not exist," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 47(3), pages 325-347, September.
    17. Marzio Galeotti & Matteo Manera & Alessandro Lanza, 2006. "On the Robustness of Robustness Checks of the Environmental Kuznets Curve," Working Papers 2006.22, Fondazione Eni Enrico Mattei.
    18. Kathleen M. Day & R. Quentin Grafton, 2003. "Growth and the Environment in Canada: An Empirical Analysis," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 51(2), pages 197-216, July.
    19. Liddle, Brantley & Messinis, George, 2015. "Revisiting sulfur Kuznets curves with endogenous breaks modeling: Substantial evidence of inverted-Us/Vs for individual OECD countries," Economic Modelling, Elsevier, vol. 49(C), pages 278-285.
    20. Jie HE, 2005. "Economic Determinants for China’s Industrial SO2 Emission: Reduced vs. Structural form and the role of international trade," Working Papers 200505, CERDI.

    More about this item

    Keywords

    Emissions; FDI; Import; GCC; VECM; Variance DecompositionJournal: International Journal of Management Science and Business Administration;
    All these keywords.

    JEL classification:

    • M00 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - General - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mgs:ijmsba:v:1:y:2015:i:6:p:118-126. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Bojan Obrenovic (email available below). General contact details of provider: https://researchleap.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.