Promotion of green economic growth in post-Soviet countries: Role of foreign direct and portfolio investments
Green economic growth ensures the country’s wealth and population well-being with decreasing ecological damages. This strategy requires effective government policy to push economic agents to environmentally friendly behavior and significant financial resources to invest in technological modernizatio...
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| Format: | Article |
| Language: | English |
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LLC "CPC "Business Perspectives"
2023-11-01
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| Series: | Problems and Perspectives in Management |
| Subjects: | |
| Online Access: | https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/19080/PPM_2023_04_Atashov.pdf |
| _version_ | 1797328020030095360 |
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| author | Bayali Atashov Elnura Mammadova Elshan Ibrahimov |
| author_facet | Bayali Atashov Elnura Mammadova Elshan Ibrahimov |
| author_sort | Bayali Atashov |
| collection | DOAJ |
| description | Green economic growth ensures the country’s wealth and population well-being with decreasing ecological damages. This strategy requires effective government policy to push economic agents to environmentally friendly behavior and significant financial resources to invest in technological modernization. The study aims to assess whether promotion of green economic growth in post-Soviet countries depends on direct and portfolio investment. The paper develops the index of green economic growth performance considering traditional economic growth, social, and environmental indicators. To determine the contribution of direct and portfolio investments in the promotion of green economic growth performance, regression equations (for the panel of countries as a whole and each country in particular) are developed. All models are supplemented with traditional economic growth control variables (GDP growth, inflation, gross fixed capital formation, trade). The information base is public data from the World Bank for the sample of 13 post-Soviet countries for 2000–2021. It was revealed that Estonia and Latvia have the highest level of green economic growth performance, while Ukraine, Uzbekistan, and Kazakhstan have the lowest. The most effective country (Latvia) uses its green economic growth potential only for 62.33%. Modeling results do not confirm the significance of foreign and portfolio investment contributions in promoting green economic growth in most post-Soviet countries (portfolio investments boost green economic growth in Estonia and Moldova, while foreign direct investments contribute to green economic growth in Ukraine). These results might be explained by a lack of institutional capacity and government efficiency to ensure effective absorption of investments. |
| first_indexed | 2024-03-08T06:45:54Z |
| format | Article |
| id | doaj.art-11661d7cd5ba44b59cfafeaafe9968f1 |
| institution | Directory Open Access Journal |
| issn | 1727-7051 1810-5467 |
| language | English |
| last_indexed | 2024-03-08T06:45:54Z |
| publishDate | 2023-11-01 |
| publisher | LLC "CPC "Business Perspectives" |
| record_format | Article |
| series | Problems and Perspectives in Management |
| spelling | doaj.art-11661d7cd5ba44b59cfafeaafe9968f12024-02-03T07:56:05ZengLLC "CPC "Business Perspectives"Problems and Perspectives in Management1727-70511810-54672023-11-0121428830310.21511/ppm.21(4).2023.2319080Promotion of green economic growth in post-Soviet countries: Role of foreign direct and portfolio investmentsBayali Atashov0https://orcid.org/0000-0002-5893-7619Elnura Mammadova1https://orcid.org/0000-0003-2721-5733Elshan Ibrahimov2https://orcid.org/0000-0001-6582-2687Doctor in Economics, Professor, Vice-rector for Science and Innovation, Azerbaijan Cooperation UniversityDoctor in Economics, Associate Professor, Department of Finance and Banking, Azerbaijan Cooperation UniversityDoctor in Economics, Associate Professor, Department of Finance and Banking, Azerbaijan Cooperation UniversityGreen economic growth ensures the country’s wealth and population well-being with decreasing ecological damages. This strategy requires effective government policy to push economic agents to environmentally friendly behavior and significant financial resources to invest in technological modernization. The study aims to assess whether promotion of green economic growth in post-Soviet countries depends on direct and portfolio investment. The paper develops the index of green economic growth performance considering traditional economic growth, social, and environmental indicators. To determine the contribution of direct and portfolio investments in the promotion of green economic growth performance, regression equations (for the panel of countries as a whole and each country in particular) are developed. All models are supplemented with traditional economic growth control variables (GDP growth, inflation, gross fixed capital formation, trade). The information base is public data from the World Bank for the sample of 13 post-Soviet countries for 2000–2021. It was revealed that Estonia and Latvia have the highest level of green economic growth performance, while Ukraine, Uzbekistan, and Kazakhstan have the lowest. The most effective country (Latvia) uses its green economic growth potential only for 62.33%. Modeling results do not confirm the significance of foreign and portfolio investment contributions in promoting green economic growth in most post-Soviet countries (portfolio investments boost green economic growth in Estonia and Moldova, while foreign direct investments contribute to green economic growth in Ukraine). These results might be explained by a lack of institutional capacity and government efficiency to ensure effective absorption of investments.https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/19080/PPM_2023_04_Atashov.pdfenvironmental damageforeign direct investmentsgreen economyportfolio equitypost-Soviet countriessustainable growth |
| spellingShingle | Bayali Atashov Elnura Mammadova Elshan Ibrahimov Promotion of green economic growth in post-Soviet countries: Role of foreign direct and portfolio investments Problems and Perspectives in Management environmental damage foreign direct investments green economy portfolio equity post-Soviet countries sustainable growth |
| title | Promotion of green economic growth in post-Soviet countries: Role of foreign direct and portfolio investments |
| title_full | Promotion of green economic growth in post-Soviet countries: Role of foreign direct and portfolio investments |
| title_fullStr | Promotion of green economic growth in post-Soviet countries: Role of foreign direct and portfolio investments |
| title_full_unstemmed | Promotion of green economic growth in post-Soviet countries: Role of foreign direct and portfolio investments |
| title_short | Promotion of green economic growth in post-Soviet countries: Role of foreign direct and portfolio investments |
| title_sort | promotion of green economic growth in post soviet countries role of foreign direct and portfolio investments |
| topic | environmental damage foreign direct investments green economy portfolio equity post-Soviet countries sustainable growth |
| url | https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/19080/PPM_2023_04_Atashov.pdf |
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