The Effect of Information and Communication Technology and Foreign Direct Investment on Green Productivity in Iran

Subject Areas : Environmental Economics

Behnaz  Mashayekhi ¹ (Ph.D. Student, Department of Economics, Abhar branch, Islamic Azad university, Abhar, Iran.)
Kambiz  Hojhabr kiani ² (Prof., Department of Economics,Tehran Science And Research Branch, Islamic Azad university, Tehran, Iran. *(Corresponding Author))
Farzaneh  Khalili ³ (Assistant Professor, Department of Economics, Abhar branch, Islamic Azad university, Abhar, Iran.)
Farid  Asgari ⁴ (Assistant Professor, Department of Economics, Abhar branch, Islamic Azad university, Abhar, Iran)

Received: 2018-06-23 Accepted : 2019-11-14 Published : 2021-03-21

Keywords: foreign direct investment, Information and Communication Technology, Sustainable development, Vector Error-Correction Model, Green Productivity,

Abstract :

Background and Purpose: Effective protection of the environment and optimal use of natural resources is one of the most important pillars of sustainable development. Green productivity is a strategy to increase environmental productivity and performance in order to social and economic development. The Information and Communication Technology (ICT) revolution has severely affected all countries in terms of economic, social, political, cultural aspects as well as security, employment, health, the environment, and many other macro variables; so that, the technology has become the main driving force of the world's economy and sustainable development in today's world. According to the importance and the impact of Foreign Direct Investment and Information and Communication Technology on green productivity, this paper uses the Johansen-Joselius coherent test of the relationship between Foreign Direct Investment and Information and Communication Technology and the Green Productivity Index in Iran. Materials and Methods: The effect of Information and Communication Technology and Foreign Direct Investment on green productivity has been investigated in Iran using the Johansen-Joselius coherent test during the period of 1980-2013. Findings: According to the research findings, the Information and Communication Technology and Foreign Direct Investment have a positive and significant and a negative and significant effect of on the Green Productivity Index in Iran, respectively. Also, the vector error correction model shows that the adjustment process is slowing towards the equilibrium. Discussion and Conclusion: According to the obtained results, and considering the negative and significant effect of Foreign Direct Investment on green productivity, which could be as a result of increased pollution, it is suggested that is possible to provide a ground to improve green productivity by adopting policies to reduce the destructive effects of Foreign Direct Investment, including the replacement of green energy. It is also recommended that environmental regulations and standards be imposed upon the entry of Foreign Direct Investment which could be done with less environmental pollution. The effect of Information and Communication Technology index on Green Productivity Index is positive and significant in Iran. Therefore, it can be surely said that the use of Information and Communication Technology, as a solution for green productivity institutionalization is essential for implementing the continuous and effective process of green productivity improvement. It is also suggested to determine criteria, for the development and implementation of the green productivity concept, that fully cover the qualitative patterns of economic growth and development.

References:

1. Saleisi,M., Ehsani,A., Alavipour,F., Chehar Azar,F.2013. The Effect of Information and Communication Technology in Sustainable Development of the Environment. Quarterly Journal of Environmental Education and Sustainable Development. 2(5), 53-72, (In Persian).


2. Copeland, B. R. & M. S. Taylor (2003) ."Trade and the Environment", Princeton University Press.


3. Gaur, S., Matta, G. and Singh, V., 2011. Importance and Role of Green Productivity in Industries: A Review, Enviroment Conservation Journal 12(1&2), pp.129-133


4. Johannson and Kobbert., 2006. Handbook on Green Productivity, Asian Productivity Organization.


5. MOEA., 2017. Guidelines on Energy Development, Ministry of Economic Affairs, Taiwan.


6. Huppes, G. and Ishikawa, M.( 2005). A framework for quantified eco-efficiency analysis. Journal of Industrial Ecology, 9(4), 25-41.


7. Kortelainen, M. and Kuosmanen, T.(2005). "Measuring eco-efficiency of production with data Envelopment Analysis " Journal of Industrial Ecology, 9(4). 4, 59-71.


8. Kortelainen, M. (2008). Dynamic environmental performance analysis: A malmquist index approach. Ecological Economic, vol. 64, 701-715.


9. Lauwers, L.(2009). Justifying the incorporation of the materials balance principle into frontier-based eco-efficiency models. Ecological Economic, vol. 68, 1605-1614.


10. Hahn, T. Figge, F., Liesen, A. and Barkemeyer, R.(2010). Opportunity cost based analysis of corporate eco-efficiency: A methodolohy and its application to the CO2-efficiency of German companies. Journal of Environmental Management, vol. 91,1997-2007.


11. Repetto, R., Rotham, D., Faeth, P., Austin, D., 1996. Has Environmental Protection Really Reduced Productivity Growth? We Need Unbiased Measures. World Resource Institute, Washington, DC.


12. Hur, T., Kim, I. and Yamamoto, R.,2004. "Measurement of green productivity and its improvement," Journal of Cleaner Production, vol. 12, pp. 673–683.


13. Gandhi, N. M. D., Selladurai, V. and Santhi, P. "Green productivity indexing: A practical step toward integrating environmental protection into corporate performance," International Journal of Productivity and Performance Management, 2006, vol. 55, No. 7, pp. 594-606.


14. Emami Meybodi, A., Khoshkamol Khosroshahi, M,. Mahdavi, R, A,.2015. Efficiency and Productivity an Economic Perspective", Allameh Tabatabaei University Press, First Edition,234.


15. https://www.cbi.ir.


16. World Bank (2018).


17. Penn World Table (2018)


18. Unctad Stat(2018)