The nexus between foreign direct investment and environmental sustainability in North Africa
This paper provides a study of the relationship between sustainable development and foreign direct investment (FDI) from an empirical point of view in the case of the North African countries during the period from 1985 to 2005. We use the cointegration test, the FMOLS (Fully Modified Ordinary Least...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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LLC "CPC "Business Perspectives"
2018-04-01
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| Series: | Environmental Economics |
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| Online Access: | https://businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/10254/EE_2018_01_Lazreg.pdf |
| _version_ | 1818118962448171008 |
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| author | Marwa Lazreg Ezzeddine Zouari |
| author_facet | Marwa Lazreg Ezzeddine Zouari |
| author_sort | Marwa Lazreg |
| collection | DOAJ |
| description | This paper provides a study of the relationship between sustainable development and foreign direct investment (FDI) from an empirical point of view in the case of the North African countries during the period from 1985 to 2005. We use the cointegration test, the FMOLS (Fully Modified Ordinary Least Squares) model and the Granger causality test to examine this relationship. According to the empirical results, we confirm the existence of a cointegration relationship between the different series studied in this paper. Based on the cointegration test we can use the error correction model. Also, to test the effect of FDI on sustainable development in the North African countries, we make an estimate by FMOLS method. We found that the foreign direct investment has a positive impact on CO2 emissions. Also, the Granger Causality test confirms the presence of a bidirectional relationship between FDI and CO2 emissions (Carbon dioxide). That is to say, the FDI can cause CO2 emissions and CO2 emissions can cause FDI based on the Granger causality. |
| first_indexed | 2024-12-11T05:02:38Z |
| format | Article |
| id | doaj.art-fd1ed170167e466ca8ede2e5a22b9532 |
| institution | Directory Open Access Journal |
| issn | 1998-6041 1998-605X |
| language | English |
| last_indexed | 2024-12-11T05:02:38Z |
| publishDate | 2018-04-01 |
| publisher | LLC "CPC "Business Perspectives" |
| record_format | Article |
| series | Environmental Economics |
| spelling | doaj.art-fd1ed170167e466ca8ede2e5a22b95322022-12-22T01:20:07ZengLLC "CPC "Business Perspectives"Environmental Economics1998-60411998-605X2018-04-0191576810.21511/ee.09(1).2018.0510254The nexus between foreign direct investment and environmental sustainability in North AfricaMarwa Lazreg0Ezzeddine Zouari1Ph.D., Faculty of Economic and Management Sciences of Sousse, University of SousseProfessor, Faculty of Economic and Management Sciences of Sousse, University of SousseThis paper provides a study of the relationship between sustainable development and foreign direct investment (FDI) from an empirical point of view in the case of the North African countries during the period from 1985 to 2005. We use the cointegration test, the FMOLS (Fully Modified Ordinary Least Squares) model and the Granger causality test to examine this relationship. According to the empirical results, we confirm the existence of a cointegration relationship between the different series studied in this paper. Based on the cointegration test we can use the error correction model. Also, to test the effect of FDI on sustainable development in the North African countries, we make an estimate by FMOLS method. We found that the foreign direct investment has a positive impact on CO2 emissions. Also, the Granger Causality test confirms the presence of a bidirectional relationship between FDI and CO2 emissions (Carbon dioxide). That is to say, the FDI can cause CO2 emissions and CO2 emissions can cause FDI based on the Granger causality.https://businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/10254/EE_2018_01_Lazreg.pdfCO2foreign direct investmentpanel dataPovertysustainable development |
| spellingShingle | Marwa Lazreg Ezzeddine Zouari The nexus between foreign direct investment and environmental sustainability in North Africa Environmental Economics CO2 foreign direct investment panel data Poverty sustainable development |
| title | The nexus between foreign direct investment and environmental sustainability in North Africa |
| title_full | The nexus between foreign direct investment and environmental sustainability in North Africa |
| title_fullStr | The nexus between foreign direct investment and environmental sustainability in North Africa |
| title_full_unstemmed | The nexus between foreign direct investment and environmental sustainability in North Africa |
| title_short | The nexus between foreign direct investment and environmental sustainability in North Africa |
| title_sort | nexus between foreign direct investment and environmental sustainability in north africa |
| topic | CO2 foreign direct investment panel data Poverty sustainable development |
| url | https://businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/10254/EE_2018_01_Lazreg.pdf |
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