IDEAS home Printed from https://ideas.repec.org/a/asi/aeafrj/v15y2025i9p1385-1394id5584.html
   My bibliography  Save this article

FDI's impact on renewable energy in transitional markets: A panel threshold regression analysis

Author

Listed:
  • Kunofiwa Tsaurai

Abstract

The study investigated the influence of foreign direct investment (FDI) on renewable energy usage in transitional markets. Specifically, the study explored the minimum threshold level above which FDI begins to significantly enhance the use of renewable energy in transitional markets. This study used a dynamic panel threshold regression approach, with panel data spanning from 2004 to 2019. FDI equal to or exceeding a threshold of 44.13% of GDP (gross domestic product) had a significant enhancing influence on the usage of renewable energy (Model 1). Model 2 indicates that FDI exceeding or equal to a threshold value of 51.63% of GDP enhanced renewable energy consumption significantly. The results agree that higher levels of FDI, equal to or higher than the threshold levels, promote the use of renewable energy. The study indicates that foreign direct investment is a critical component in improving renewable energy consumption. Transitional markets need to develop and implement FDI inflow and retention enhancement policies to improve renewable energy usage. Policies aimed at encouraging financial development, total revenue, and human capital development should also be implemented by transitional markets to spur renewable energy consumption.

Suggested Citation

  • Kunofiwa Tsaurai, 2025. "FDI's impact on renewable energy in transitional markets: A panel threshold regression analysis," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 15(9), pages 1385-1394.
    • Handle: RePEc:asi:aeafrj:v:15:y:2025:i:9:p:1385-1394:id:5584
    as

    Download full text from publisher

    File URL: https://archive.aessweb.com/index.php/5002/article/view/5584/8422
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    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:asi:aeafrj:v:15:y:2025:i:9:p:1385-1394:id:5584. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Robert Allen (email available below). General contact details of provider: https://archive.aessweb.com/index.php/5002/ .

    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.