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

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  • 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
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    References listed on IDEAS

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    1. 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.
    2. 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.
    3. Mohammed Redha Qader, 2009. "Electricity Consumption and GHG Emissions in GCC Countries," Energies, MDPI, vol. 2(4), pages 1-13, December.
    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.
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    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

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