Investigating the causal relationship between Carbon dioxide emissions, foreign direct investment and economic growth in the Persian Gulf countries.
Subject Areas : Environmental Economics
mojtaba ghiasi
1
,
Ahmad Sarlak
2
1 - Assistant Professor, Department of Management, Malayer Branch, Islamic Azad university, Malayer, Iran. *(Corresponding Author)
2 - Assistant Professor, Department of Economic Arak Branch Islamic Azad University Arak.Iran
Keywords: Economic growth, Carbon dioxide emissions, foreign investment growth, Persian Gulf countries.,
Abstract :
Background and Objectives: Today, pollution has become one of the main management challenges of countries; In such a way that countries, in addition to policies and actions within their borders, also pursue the organization of pollution in the international arena. Undoubtedly, the production and Carbon dioxide emissions is a function of the economic growth process of countries. In this regard, the main purpose of this study is to investigate the causal relationship between Carbon dioxide emissions, foreign direct investment and economic growth in the Persian Gulf countries using PVAR model in 2019 -1980.
Material and Methodology: The present study is an applied research and correlational research method. The statistical population of this study is the countries of the Persian Gulf that the required data of the model variables have been collected from the World Bank and economic sites of the studied countries. Model parameters were estimated by Eviews9 software.
Finding: The findings of this study showed that there is no two-way causal relationship between Carbon dioxide emissions and economic growth in the Persian Gulf countries. Also, there is no two-way causal relationship between Carbon dioxide emissions and foreign direct investment in the Persian Gulf countries. Finally, it was found that there is no two-way causal relationship between economic growth and foreign direct investment in the Persian Gulf countries.
Discussion and conclusion: Given that the countries under study are on the path to development, their industrial process, the concentration of industries in cities, the urbanization process and the consumption of fossil fuels and the resulting pollution have been growing. It is therefore suggested that in order to move towards sustainable development, policies that help protect the environment should be seriously pursued in these countries.
1. Sajjadi J, Yarmoradi K, Kanoni R, Heidari M, 1396. The role of good governance in improving the quality of urban environment from the perspective of residents, a case study: Ferdows Garden neighborhood of Tehran, District 1, Bi-Quarterly Journal of Urban Ecology Research, Volume 8, Number 1, Pp. 108-95.
2. Lansing J.B. R.W. Marans, 1969. "Evaluatiln of Neighborhood", J.of the American Institute of Planners, 35.
3. KampI.V, Leidelmeijer K, Marsman G, Hollander A. D, 2003. "Urban Environmental Quality and Human Well-being towards a Conceptual Framework and Demarcation of Concepts, A Literature Studey", Landscape and Urban Planning,65.
4. Lee W. J, 2013. The contribution of foreign direct investment to clean energy use, carbon emissions and economic growth. Energy Policy, 55, 483–489.
5. Omri A, Khuong N. D, Rault C, 2014. Causal interactions between CO2 emissions, FDI, and economic growth: Evidence from dynamic simultaneous-equation models. Original Research Article Economic Modeling, 42, 382–389.
6. Frankel Jeffrey A, David R, 2000. Does Trade Cause Growth? The American Economic Review, Vol. 89, No. 3, pp. 379-399
7. marin G, 2010. "Sector CO2 and Sox emissions, efficiency and investment: Homogeneous vs heterogeneous estimates using the Italian NAMEA".
8. Kalantarzadeh M, Zandif, Khezri M, Safavid B, 1400. The relationship between transportation, economic growth and the environment in selected countries Mena, Agricultural Economics Research Volume 31 Number 2, pp. 196-173.
9. Ebrahimi M, Nasiri M, 1398. A study of the relationship between economic growth and Iran's environment with the approach, Quarterly Journal of Applied Economics, Volume 9, Number 29, pp. 59-45.
10. Mousavi SK, Salmanpour ZA, Shokouhi Fard S, 2017. The effect of economic growth, energy consumption and financial development on environmental pollution in Iran during the period 1365-1695, Environmental Science Studies, Volume 2, Number One, pp. 120-111 .
11. Islam Luian K, Dehghan M, 2015. Investigating the Relationship between Environmental Performance and Foreign Direct Investment: A Test of Pollution Sanctuary Hypothesis, Journal of Economic Policy, Seventh Year, No. 14, pp. 32-60.
12. Mahdavi AH, Amir Babaei S., 2015. Investigating the effect of financial development on the quality of the environment in Iran, Quarterly Journal of Economic Research (Growth and Sustainable Development), Fifteenth Year, Fourth Issue, Winter, pp. 23-23.
13. Pahlavani M, Dehbashi M, Moradi A, 2014. Investigating the effect of trade development and economic growth on the quality of the environment in Iran, Economic Research, Volume 49, Number 3, Fall, pp. 482-463.
14. Lanouar C, Afnan Yousef A, Kholoud A, 2018. Is it possible to improve environmental quality without reducing economic growth: Evidence from the Qatar economy, Renewable and Sustainable Energy Reviews 82 (2018) 25–39.
15. Mohamed Abdouli, Sami Hammami (2016), Investigating the causality links between environmental quality, foreign direct investment and economic growth in MENA countries, International Business Review
16. Shahbaz M, Solarin S. A, Mahmood H. Arouri M, 2013. “Does Financial Development Reduce CO2 Emissions in Malaysian Economy? A Time Series Analysis”, Journal of Economic Modelling, 3, pp. 145-152.
17. Pao H.T, Tsai C.M, 2011. “Multivariate Granger Causality Between CO2 Emissions, Energy Consumption, FDI (Foreign Direct Investment) and GDP (Gross Domestic Product): Evidence from a Panel of BRIC (Brazil, Russian Federation, India, and China) Countries”, Journal of Energy, 36(1), pp. 685-693.
18. Lutkepohl H, 2005. New Introduction to Multiple Time Series Analysis, Department of Economics European University Institute, Villa San Paolo.