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Post-Soviet states and CO2 emissions: the role of foreign direct investment

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  • Raufhon Salahodjaev
  • Arletta Isaeva

Abstract

Natural resource abundance, growth-oriented strategies and low environmental concern of post-Soviet states may exacerbate the consequences of climate change significantly. This study considers the relationship between CO2 emissions, economic development, foreign investment inflows, trade and energy use in 20 post-Soviet states between 1995 and 2017. A panel cointegration test reveals the long-term cointegrating relationship between the variables. Long-term elasticities are reported using Dynamic Ordinary Least Squares and Fully Modified Ordinary Least Squares regressions, which yield quite similar results: GDP per capita, foreign direct investment (FDI) inflows, trade and energy use positively related to CO2 emissions per capita in the long term. A panel causality test, however, identifies unidirectional causality running from CO2 emissions to energy use at p

Suggested Citation

  • Raufhon Salahodjaev & Arletta Isaeva, 2022. "Post-Soviet states and CO2 emissions: the role of foreign direct investment," Post-Communist Economies, Taylor & Francis Journals, vol. 34(7), pages 944-965, October.
    • Handle: RePEc:taf:pocoec:v:34:y:2022:i:7:p:944-965
    DOI: 10.1080/14631377.2021.1965360
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