The impact of green FDI on environmental quality in less developed countries: A case study of load capacity factor based on PCSE and FGLS techniques
This paper examines the effect of green foreign direct investment (GFDI) on environmental quality (EQ) in 34 less-developed countries (LDCs) from 2003 to 2021. We analyze balanced panel data using Feasible Generalized Least Squares (FGLS) and Panel-Corrected Standard Errors (PCSE). Our findings reve...
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| Format: | Article |
| Language: | English |
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Elsevier
2024-04-01
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| Series: | Heliyon |
| Subjects: | |
| Online Access: | http://www.sciencedirect.com/science/article/pii/S2405844024042488 |
| _version_ | 1827304265568223232 |
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| author | Mahamane Famanta Abid Ali Randhawa Jiang Yajing |
| author_facet | Mahamane Famanta Abid Ali Randhawa Jiang Yajing |
| author_sort | Mahamane Famanta |
| collection | DOAJ |
| description | This paper examines the effect of green foreign direct investment (GFDI) on environmental quality (EQ) in 34 less-developed countries (LDCs) from 2003 to 2021. We analyze balanced panel data using Feasible Generalized Least Squares (FGLS) and Panel-Corrected Standard Errors (PCSE). Our findings reveal several vital insights: (1) GFDI helps improve EQ. (2) Environmental costs associated with economic growth are negative. (3) Trade openness positively influences EQ. (4) EQ is enhanced by institutional quality, energy use, and population expansion in the chosen countries. (5) The existence of a U-shaped curve was established. This is valuable to the relatively scanty literature on GFDI, especially in LDCs. To the best of our awareness, this study simultaneously employs the Load Capacity Factor (LCF) and Total Value of Announced Greenfield projects as proxies for environmental sustainability and GFDI for the first time. Secondly, incorporating PCSE and FGLS models in this context is an innovative methodological strategy. The present research work provides to the existing theoretical and empirical discussions on GFDI and EQ and has practical implications that inform policy-making. |
| first_indexed | 2024-04-24T17:28:07Z |
| format | Article |
| id | doaj.art-56bedb2961f846029d1cecf368c9e299 |
| institution | Directory Open Access Journal |
| issn | 2405-8440 |
| language | English |
| last_indexed | 2024-04-24T17:28:07Z |
| publishDate | 2024-04-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Heliyon |
| spelling | doaj.art-56bedb2961f846029d1cecf368c9e2992024-03-28T06:38:24ZengElsevierHeliyon2405-84402024-04-01107e28217The impact of green FDI on environmental quality in less developed countries: A case study of load capacity factor based on PCSE and FGLS techniquesMahamane Famanta0Abid Ali Randhawa1Jiang Yajing2School of Business, Nanjing Normal University, Nanjing, 210000, China; Corresponding author. Nanjing Normal University Business School, No.1 Wenyuan Road, Qixia District, Nanjing, Jiangsu Province, China.School of Business, Nanjing Normal University, Nanjing, 210000, ChinaSchool of Business, Southeast University, Nanjing, 211189, ChinaThis paper examines the effect of green foreign direct investment (GFDI) on environmental quality (EQ) in 34 less-developed countries (LDCs) from 2003 to 2021. We analyze balanced panel data using Feasible Generalized Least Squares (FGLS) and Panel-Corrected Standard Errors (PCSE). Our findings reveal several vital insights: (1) GFDI helps improve EQ. (2) Environmental costs associated with economic growth are negative. (3) Trade openness positively influences EQ. (4) EQ is enhanced by institutional quality, energy use, and population expansion in the chosen countries. (5) The existence of a U-shaped curve was established. This is valuable to the relatively scanty literature on GFDI, especially in LDCs. To the best of our awareness, this study simultaneously employs the Load Capacity Factor (LCF) and Total Value of Announced Greenfield projects as proxies for environmental sustainability and GFDI for the first time. Secondly, incorporating PCSE and FGLS models in this context is an innovative methodological strategy. The present research work provides to the existing theoretical and empirical discussions on GFDI and EQ and has practical implications that inform policy-making.http://www.sciencedirect.com/science/article/pii/S2405844024042488Green FDIEnvironment sustainabilityLoad capacity factorLess developed countries |
| spellingShingle | Mahamane Famanta Abid Ali Randhawa Jiang Yajing The impact of green FDI on environmental quality in less developed countries: A case study of load capacity factor based on PCSE and FGLS techniques Heliyon Green FDI Environment sustainability Load capacity factor Less developed countries |
| title | The impact of green FDI on environmental quality in less developed countries: A case study of load capacity factor based on PCSE and FGLS techniques |
| title_full | The impact of green FDI on environmental quality in less developed countries: A case study of load capacity factor based on PCSE and FGLS techniques |
| title_fullStr | The impact of green FDI on environmental quality in less developed countries: A case study of load capacity factor based on PCSE and FGLS techniques |
| title_full_unstemmed | The impact of green FDI on environmental quality in less developed countries: A case study of load capacity factor based on PCSE and FGLS techniques |
| title_short | The impact of green FDI on environmental quality in less developed countries: A case study of load capacity factor based on PCSE and FGLS techniques |
| title_sort | impact of green fdi on environmental quality in less developed countries a case study of load capacity factor based on pcse and fgls techniques |
| topic | Green FDI Environment sustainability Load capacity factor Less developed countries |
| url | http://www.sciencedirect.com/science/article/pii/S2405844024042488 |
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