IDEAS home Printed from https://ideas.repec.org/a/wly/ijfiec/v30y2025i3p3044-3063.html
   My bibliography  Save this article

Relationship Between Pillars of Sustainability and Foreign Direct Investment Inflows: Evidence From Emerging Economies

Author

Listed:
  • Tusharika Mahna
  • Sonali Jain
  • Surendra Singh Yadav

Abstract

The study highlights the sustainable determinants of Foreign Direct Investment (FDI) inflows that the host nations entail by boosting foreign trade with the rest of the world. We cumulate four pillars of sustainability (environmental, economic, governance, and social) and identify the influence each pillar has on FDI inflows. The study uses a two‐step system and difference Generalised Method of Moments (GMM) to assess the dynamic panel data for the top 20 emerging nations specified by IMF from 2005 to 2019. The results exhibit that past year values of FDI inflows influence the current year values, and a significant relationship exists between sustainable determinants and FDI inflows arriving in emerging economies. The pollution haven hypothesis has also been observed by deploying linear and non‐linear associations of carbon emissions. Through the findings, we conclude that the quality of FDI must improve for host nations to prosper along the other dimensions of sustainability. The results also suggest that host countries' MNEs and businesses adopt sustainable practices and innovative strategies to automate FDI towards the attainment of sustainable development goals (SDGs) by 2030. The implications will aid host economies' policymakers in reiterating the sustainable determinants of FDI and foreign investors in acknowledging the choice of the economy to invest in.

Suggested Citation

  • Tusharika Mahna & Sonali Jain & Surendra Singh Yadav, 2025. "Relationship Between Pillars of Sustainability and Foreign Direct Investment Inflows: Evidence From Emerging Economies," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 30(3), pages 3044-3063, July.
    • Handle: RePEc:wly:ijfiec:v:30:y:2025:i:3:p:3044-3063
    DOI: 10.1002/ijfe.3057
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/ijfe.3057
    Download Restriction: no
    File URL: https://libkey.io/10.1002/ijfe.3057?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    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:wly:ijfiec:v:30:y:2025:i:3:p:3044-3063. 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: Wiley Content Delivery (email available below). General contact details of provider: http://www.interscience.wiley.com/jpages/1076-9307/ .

    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.