IDEAS home Printed from https://ideas.repec.org/a/eco/journ2/2022-05-24.html
   My bibliography  Save this article

Analyzing the Impact of Inward FDI and Economic Growth on CO2 Emissions of Ukraine

Author

Listed:
  • Farrukh Nawaz Kayani

    (Hamad Bin Khalifa University, Doha, State of Qatar)

  • Misbah Sadiq

    (Umm Al Quwain University, United Arab Emirates.)

Abstract

The study investigated the impact of foreign direct investment and economic growth, upon carbon emissions of Ukraine. The annual data for the study has been extracted from the World Bank Development Indicators for the period 1990 to 2019. The study variables are foreign direct investment, economic growth, and carbon emissions. We started our analysis based on the autoregressive distributed lag (ARDL) model as being use quite extensively in the existing literature. However, we faced the issue of multicollinearity, then we applied the Ordinary Least Square technique and system generalized method of moments as alternative estimation techniques. The main analysis is based on the Ordinary Least Square technique, whereas robustness has been carried out under the system s generalized method of moments. Both estimation techniques confirmed the significant and positive relationship between our study s variables. The results indicate that in Ukraine the inflows of foreign direct investment and economic growth have led to higher carbon emissions.

Suggested Citation

  • Farrukh Nawaz Kayani & Misbah Sadiq, 2022. "Analyzing the Impact of Inward FDI and Economic Growth on CO2 Emissions of Ukraine," International Journal of Energy Economics and Policy, Econjournals, vol. 12(5), pages 202-208, September.
    • Handle: RePEc:eco:journ2:2022-05-24
    as

    Download full text from publisher

    File URL: https://www.econjournals.com/index.php/ijeep/article/download/13395/6918
    Download Restriction: no
    File URL: https://www.econjournals.com/index.php/ijeep/article/view/13395
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Ashish Arora & Sharon Belenzon & Andrea Patacconi & Jungkyu Suh, 2020. "The Changing Structure of American Innovation: Some Cautionary Remarks for Economic Growth," Innovation Policy and the Economy, University of Chicago Press, vol. 20(1), pages 39-93.
    2. Mehmet BALCILAR & Harun BAL & Nese ALGAN & Mehmet DEMIRAL, 2014. "Turkiye’nin Ihracat Performansi: Ihracat Hacminin Temel Belirleyicilerinin Incelenmesi (1995-2012)," Ege Academic Review, Ege University Faculty of Economics and Administrative Sciences, vol. 14(3), pages 451-462.
    3. Jorge Bermejo Carbonell & Richard A. Werner, 2018. "Does Foreign Direct Investment Generate Economic Growth? A New Empirical Approach Applied to Spain," Economic Geography, Taylor & Francis Journals, vol. 94(4), pages 425-456, August.
    4. Muhammad Shahbaz & Smile Dube & Ilhan Ozturk & Abdul Jalil, 2015. "Testing the Environmental Kuznets Curve Hypothesis in Portugal," International Journal of Energy Economics and Policy, Econjournals, vol. 5(2), pages 475-481.
    5. Tijjani Musa Adamu & Ihtisham ul Haq & Muhammad Shafiq, 2019. "Analyzing the Impact of Energy, Export Variety, and FDI on Environmental Degradation in the Context of Environmental Kuznets Curve Hypothesis: A Case Study of India," Energies, MDPI, vol. 12(6), pages 1-18, March.
    6. Yuriy Bilan & Dalia Streimikiene & Tetyana Vasylieva & Oleksii Lyulyov & Tetyana Pimonenko & Anatolii Pavlyk, 2019. "Linking between Renewable Energy, CO 2 Emissions, and Economic Growth: Challenges for Candidates and Potential Candidates for the EU Membership," Sustainability, MDPI, vol. 11(6), pages 1-16, March.
    7. Umar Nawaz Kayani & Tracy-Anne De Silva & Christopher Gan, 2019. "Working capital management and corporate governance: a new pathway for assessing firm performance," Applied Economics Letters, Taylor & Francis Journals, vol. 26(11), pages 938-942, June.
    8. Khuda Bakhsh & Sobia Rose & Muhammad Faisal Ali & Najid Ahmad & Muhammad Shahbaz, 2017. "Economic growth, CO2 emissions, renewable waste and FDI relation in Pakistan: New evidences from 3SLS," Post-Print hal-02000433, HAL.
    9. Farrukh Nawaz Kayani, 2021. "Renewable Energy and Economic Growth Nexus: A Case of United Arab Emirates," International Journal of Energy Economics and Policy, Econjournals, vol. 11(5), pages 504-509.
    10. Mohamed Abdouli and Sami Hammami, 2017. "Exploring Links between FDI Inflows, Energy Consumption, and Economic Growth: Further Evidence from MENA Countries," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 42(1), pages 95-117, March.
    11. Lamia Jamel & Samir Maktouf, 2017. "The nexus between economic growth, financial development, trade openness, and CO2 emissions in European countries," Cogent Economics & Finance, Taylor & Francis Journals, vol. 5(1), pages 1341456-134, January.
    12. Al-Mulali, Usama & Saboori, Behnaz & Ozturk, Ilhan, 2015. "Investigating the environmental Kuznets curve hypothesis in Vietnam," Energy Policy, Elsevier, vol. 76(C), pages 123-131.
    13. Hille, Erik & Shahbaz, Muhammad & Moosa, Imad, 2019. "The impact of FDI on regional air pollution in the Republic of Korea: A way ahead to achieve the green growth strategy?," Energy Economics, Elsevier, vol. 81(C), pages 308-326.
    14. Dogan, Eyup & Altinoz, Buket & Madaleno, Mara & Taskin, Dilvin, 2020. "The impact of renewable energy consumption to economic growth: A replication and extension of Inglesi-Lotz (2016)," Energy Economics, Elsevier, vol. 90(C).
    15. Acheampong, Alex O., 2018. "Economic growth, CO2 emissions and energy consumption: What causes what and where?," Energy Economics, Elsevier, vol. 74(C), pages 677-692.
    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. Wilman-Santiago Ochoa-Moreno & Byron Alejandro Quito & Carlos Andrés Moreno-Hurtado, 2021. "Foreign Direct Investment and Environmental Quality: Revisiting the EKC in Latin American Countries," Sustainability, MDPI, vol. 13(22), pages 1-18, November.
    2. Eduardo Polloni-Silva & Diogo Ferraz & Flávia de Castro Camioto & Daisy Aparecida do Nascimento Rebelatto & Herick Fernando Moralles, 2021. "Environmental Kuznets Curve and the Pollution-Halo/Haven Hypotheses: An Investigation in Brazilian Municipalities," Sustainability, MDPI, vol. 13(8), pages 1-19, April.
    3. Demena, Binyam Afewerk & Afesorgbor, Sylvanus Kwaku, 2020. "The effect of FDI on environmental emissions: Evidence from a meta-analysis," Energy Policy, Elsevier, vol. 138(C).
    4. Li, Jinkai & Gao, Ming & Luo, Erga & Wang, Jingyi & Zhang, Xuebiao, 2023. "Does rural energy poverty alleviation really reduce agricultural carbon emissions? The case of China," Energy Economics, Elsevier, vol. 119(C).
    5. George E. Halkos & Eleni-Christina Gkampoura, 2021. "Examining the Linkages among Carbon Dioxide Emissions, Electricity Production and Economic Growth in Different Income Levels," Energies, MDPI, vol. 14(6), pages 1-24, March.
    6. Liu, Yaping & Sadiq, Farah & Ali, Wajahat & Kumail, Tafazal, 2022. "Does tourism development, energy consumption, trade openness and economic growth matters for ecological footprint: Testing the Environmental Kuznets Curve and pollution haven hypothesis for Pakistan," Energy, Elsevier, vol. 245(C).
    7. Tomiwa Sunday Adebayo & Abraham Ayobamiji Awosusi & Seun Damola Oladipupo & Ephraim Bonah Agyekum & Arunkumar Jayakumar & Nallapaneni Manoj Kumar, 2021. "Dominance of Fossil Fuels in Japan’s National Energy Mix and Implications for Environmental Sustainability," IJERPH, MDPI, vol. 18(14), pages 1-20, July.
    8. Olimpia Neagu, 2019. "The Link between Economic Complexity and Carbon Emissions in the European Union Countries: A Model Based on the Environmental Kuznets Curve (EKC) Approach," Sustainability, MDPI, vol. 11(17), pages 1-27, August.
    9. Acheampong, Alex O., 2019. "Modelling for insight: Does financial development improve environmental quality?," Energy Economics, Elsevier, vol. 83(C), pages 156-179.
    10. Iorember, Paul Terhemba & Usman, Ojonugwa & Jelilov, Gylych, 2019. "Asymmetric Effects of Renewable Energy Consumption, Trade Openness and Economic Growth on Environmental Quality in Nigeria and South Africa," MPRA Paper 96333, University Library of Munich, Germany, revised 2019.
    11. Yi-Bin Chiu & Wenwen Zhang, 2023. "Moderating Effect of Financial Development on the Relationship between Renewable Energy and Carbon Emissions," Energies, MDPI, vol. 16(3), pages 1-18, February.
    12. Mounir Dahmani & Mohamed Mabrouki & Ludovic Ragni, 2021. "Decoupling Analysis of Greenhouse Gas Emissions from Economic Growth: A Case Study of Tunisia," Energies, MDPI, vol. 14(22), pages 1-15, November.
    13. Nan, Shijing & Huo, Yuchen & You, Wanhai & Guo, Yawei, 2022. "Globalization spatial spillover effects and carbon emissions: What is the role of economic complexity?," Energy Economics, Elsevier, vol. 112(C).
    14. Chien, Fengsheng & Anwar, Ahsan & Hsu, Ching-Chi & Sharif, Arshian & Razzaq, Asif & Sinha, Avik, 2021. "The role of information and communication technology in encountering environmental degradation: Proposing an SDG framework for the BRICS countries," Technology in Society, Elsevier, vol. 65(C).
    15. Eleftherios Filippiadis & Anastasia Litina, 2022. "A dynamic analysis of the income–pollution relationship in a two-country setting," Economic Change and Restructuring, Springer, vol. 55(2), pages 775-801, May.
    16. Ansari, Mohd Arshad, 2022. "Re-visiting the Environmental Kuznets curve for ASEAN: A comparison between ecological footprint and carbon dioxide emissions," Renewable and Sustainable Energy Reviews, Elsevier, vol. 168(C).
    17. Shobande, Olatunji A. & Asongu, Simplice A., 2022. "The Critical Role of Education and ICT in Promoting Environmental Sustainability in Eastern and Southern Africa: A Panel VAR Approach," Technological Forecasting and Social Change, Elsevier, vol. 176(C).
    18. Zhen Shi & Fengping Wu & Huinan Huang & Xinrui Sun & Lina Zhang, 2019. "Comparing Economics, Environmental Pollution and Health Efficiency in China," IJERPH, MDPI, vol. 16(23), pages 1-30, December.
    19. Azad Haider & Muhammad Iftikhar ul Husnain & Wimal Rankaduwa & Farzana Shaheen, 2021. "Nexus between Nitrous Oxide Emissions and Agricultural Land Use in Agrarian Economy: An ARDL Bounds Testing Approach," Sustainability, MDPI, vol. 13(5), pages 1-19, March.
    20. Alexandra-Anca Purcel, 2019. "Does Political Stability Hinder Pollution? Evidence From Developing States," Economic Research Guardian, Weissberg Publishing, vol. 9(2), pages 75-98, December.

    More about this item

    Keywords

    Inward FDI; Economic Growth; CO2 Emissions; Ukraine;
    All these keywords.

    JEL classification:

    • P18 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Energy; Environment
    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development

    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:eco:journ2:2022-05-24. 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: Ilhan Ozturk (email available below). General contact details of provider: http://www.econjournals.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.