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The relationship between FDI, poverty reduction and environmental sustainability in Tunisia

Author

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  • Marwa Lazreg

    (Université de Sousse)

  • Ezzeddine Zouari

    (Université de Sousse)

Abstract

Our goal in this paper is the study of the impact of FDI on poverty and sustainable development in the case of Tunisia and during the study period from 1985 to 2015. In addition, we used the test unit root of cointegration test, the model error correction of FMOLS and Granger causality. In the case of Tunisia, we find that all variables are integrated of order 1. Thus, we can use the cointegration test. Indeed, the result of the null hypothesis test of no cointegration was rejected at the 5% threshold, which explains the presence of a cointegration relationship between FDI, sustainable development and poverty. Finally, we present and interpreted the results of the estimated FMOLS model and Granger causality test to study the contribution of FDI to the poverty reduction and sustainable development in Tunisia. We find that the LIDE variable measuring foreign direct investment has a significant negative impact on the GINI index. We notice the LCO2 variable that measures the CO2 emissions has a negative and significant impact on poverty as measured by the poverty gap at $ 1.91. We prove that direct foreign investments have a significant negative impact on CO2 emissions. We find that the LIDE variable measuring foreign direct investment has a significant negative impact on the GINI index. We notice the LCO2 variable that measures the CO2 emissions has a negative and significant impact on poverty as measured by the poverty gap at $ 1.91. We prove that direct foreign investments have a significant negative impact on CO2 emissions. We found that the LIDE variable measuring foreign direct investment has a significant negative impact on the GINI index. We notice the LCO2 variable that measures the CO2 emissions has a negative and significant impact on poverty as measured by the poverty gap at $ 1.91. We prove that direct foreign investments have a significant negative impact on CO2 emissions

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  • Marwa Lazreg & Ezzeddine Zouari, 2018. "The relationship between FDI, poverty reduction and environmental sustainability in Tunisia," Working Papers hal-01756733, HAL.
    • Handle: RePEc:hal:wpaper:hal-01756733
    Note: View the original document on HAL open archive server: https://hal.science/hal-01756733
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    Cited by:

    1. Chien‐Chiang Lee & Mei‐Ping Chen & Wei Xu, 2022. "Assessing the impacts of formal and informal regulations on ecological footprint," Sustainable Development, John Wiley & Sons, Ltd., vol. 30(5), pages 989-1017, October.
    2. Sodiq Arogundade & Mduduzi Biyase & Santos Bila, 2022. "Be Nice to Thy Neighbors: Spatial Impact of Foreign Direct Investment on Poverty in Africa," Economies, MDPI, vol. 10(6), pages 1-20, June.
    3. Megbowon Ebenezer T. & Mukarumbwa Peter & Ojo Oloruntimilehin S. & Ojeyinka Titus A., 2023. "Does Urbanization Matter For Poverty Reduction in Nigeria: An Empirical Evidence From Autoregressive Distributed Lag (ARDL) Estimation," Studia Universitatis „Vasile Goldis” Arad – Economics Series, Sciendo, vol. 33(3), pages 1-20, September.
    4. Sodiq Arogundade & Mduduzi Biyase & Hinaunye Eita, 2021. "Foreign Direct Investment and Inclusive Human Development in Sub-Saharan African Countries:Does local Economic Conditions Matter?," Economic Development and Well-being Research Group Working Paper Series edwrg-01-2021, University of Johannesburg, College of Business and Economics, revised 2021.
    5. Stéphane Mbiankeu Nguea & Issidor Noumba & Armand Gilbert Noula, 2020. "Does Foreign Direct Investment Contribute to Poverty Reduction in Cameroon? An ARDL-Bounds Testing Approach," Working Papers halshs-02570072, HAL.

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    Keywords

    CO2 emissions; FMOLS; cointegration; IDE; poverty;
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