IDEAS home Printed from https://ideas.repec.org/p/hal/journl/hal-05451357.html

Mobilizing FDI in natural resources in the post-COP28 era: Spatial drivers, natural capital, and sustainability dynamics

Author

Listed:
  • Haithem Awijen

    (INSEEC - Institut des hautes études économiques et commerciales | School of Business and Economics)

  • Sami Ben Jabeur

    (UR CONFLUENCE : Sciences et Humanités (EA 1598) - UCLy - UCLy (Lyon Catholic University), ESDES - ESDES, Lyon Business School - UCLy - UCLy - UCLy (Lyon Catholic University))

  • Younes Ben Zaied

    (EDC - EDC Paris Business School)

Abstract

This study examines the dynamic determinants of resource-related Foreign Direct Investment (FDI) using a panel dataset spanning from 2000 to 2022. By employing an Error Correction Model with Spatial Autoregression (ECM-SAR) and a Smooth Transition Autoregressive (STAR) model, we explore both the short-run and long-run drivers of resource FDI while accounting for spatial dependencies and nonlinear threshold effects. The results confirm the significant role of market size, human capital, and economic prosperity in attracting resource-related FDI, while excessive government intervention and stringent environmental policies exert a deterrent effect. Our findings reveal strong persistence in resource FDI flows, with past investment decisions heavily influencing current inflows. Population size and human capital emerge as robust determinants, reinforcing the importance of labor market dynamics in investment decisions. The analysis also uncovers spatial dependencies, indicating that FDI in one country is influenced by investments in neighboring regions. Furthermore, the STAR model highlights nonlinearities in FDI determinants, suggesting that threshold effects shape investment behavior, particularly concerning government intervention and resource dependence. The policy implications emphasize the need for balanced regulatory frameworks that encourage investment while maintaining sustainable environmental and economic policies.

Suggested Citation

  • Haithem Awijen & Sami Ben Jabeur & Younes Ben Zaied, 2025. "Mobilizing FDI in natural resources in the post-COP28 era: Spatial drivers, natural capital, and sustainability dynamics," Post-Print hal-05451357, HAL.
    • Handle: RePEc:hal:journl:hal-05451357
    DOI: 10.1016/j.resourpol.2025.105638
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a
    for a similarly titled item that would be available.

    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:hal:journl:hal-05451357. 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: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    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.