The Relationship between Inward Foreign Direct Investment, Economic Growth and Carbon Emissions: A Case of Italy from G7 Countries

Authors

  • Farrukh Nawaz Faculty of Business Studies, Arab Open University, Riyadh, Saudi Arabia
  • Misbah Sadiq College of Business Administration, Umm Al Quwain University, United Arab Emirates
  • Mohammad Salem Oudat College of Business Administration, Umm Al Quwain University, United Arab Emirates
  • Khalil Abu Saleem Faculty of Business Studies, Arab Open University, Riyadh, Saudi Arabia
  • Umar Kayani College of Business, Al Ain University, Abu Dhabi, United Arab Emirates
  • Mrestyal Khan Department of Management Sciences, Balochistan University of Information Technology, Engineering and Management Sciences, Quetta, Pakistan

DOI:

https://doi.org/10.32479/ijeep.16329

Keywords:

Foreign Direct Investment, Economic Growth, Carbon Neutrality, Italy, Autoregressive Distributed Lag

Abstract

Recently, a significant amount of carbon dioxide emissions has grabbed the attention of global community. Thus, this study attempts to investigate the impact of inward foreign direct investment, and economic growth on carbon dioxide emissions in case of Italy. We took Italy as our sample country as it has committed to achieve carbon neutrality by 2050. We took annual time series data for the dependent variable (CO2) and explanatory variables (GDP, FDI, Natural Resources) for the period ranging from 1990 to 2021. To examine the long run relationship between the variables we used autoregressive distributed lags bounds test of cointegration. The empirical findings revealed the existence of long-run relationships among the variables of the model. Furthermore, we also found that natural resources unidirectionally caused CO2 and GDP.

Downloads

Download data is not yet available.

Downloads

Published

2024-09-07

How to Cite

Nawaz, F., Sadiq, M., Oudat, M. S., Saleem, K. A., Kayani, U., & Khan, M. (2024). The Relationship between Inward Foreign Direct Investment, Economic Growth and Carbon Emissions: A Case of Italy from G7 Countries. International Journal of Energy Economics and Policy, 14(5), 19–25. https://doi.org/10.32479/ijeep.16329

Issue

Vol. 14 No. 5 (2024)

Section

Articles

License

Submission of an article implies that the work described has not been published previously , that it is not under consideration for publication elsewhere, that its publication is approved by all authors and tacitly or explicitly by the responsible authorities where the work was carried out, and that, if accepted, will not be published elsewhere in the same form, without the written consent of the Publisher. The Editors reserve the right to edit or otherwise alter all contributions, but authors will receive proofs for approval before publication.