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Exploring the Nexus Among FDI Inflows, Environmental Quality, Human Capital, and Economic Growth in the Mediterranean Region

Author

Listed:
  • Mohamed Abdouli

    (University of Sfax)

  • Anis Omri

    (Qassim University
    Carthage University)

Abstract

This article investigates the links between FDI inflows, environmental quality, human capital, and economic growth in the Mediterranean region for the period of 1990–2013. Using both dynamic OLS and fully modified OLS methods, we find that (i) there is bidirectional causality between economic growth, FDI inflows, CO2 emissions, and human capital for all the considered panels, except in the Euro and Asian Mediterranean countries panel there is a unidirectional causality from FDI inflows to human capital as well as from human capital to FDI inflows; (ii) with the exception of the African Mediterranean countries panel, there is unidirectional causality running from GDP to FDI inflows as well as from GDP to human capital, from FDI to human capital, and from human capital to CO2 emissions. These empirical insights are of particular interest to policymakers to build sound policies to promote economic growth and improving environmental quality.

Suggested Citation

  • Mohamed Abdouli & Anis Omri, 2021. "Exploring the Nexus Among FDI Inflows, Environmental Quality, Human Capital, and Economic Growth in the Mediterranean Region," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 12(2), pages 788-810, June.
    • Handle: RePEc:spr:jknowl:v:12:y:2021:i:2:d:10.1007_s13132-020-00641-5
    DOI: 10.1007/s13132-020-00641-5
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    More about this item

    Keywords

    Economic growth; FDI inflows; CO2 emissions; Human capital; Mediterranean region;
    All these keywords.

    JEL classification:

    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development
    • B41 - Schools of Economic Thought and Methodology - - Economic Methodology - - - Economic Methodology
    • F31 - International Economics - - International Finance - - - Foreign Exchange
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • P28 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Natural Resources; Environment
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • P33 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - International Trade, Finance, Investment, Relations, and Aid
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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