The asymmetric relationship between foreign direct investment, oil prices and carbon emissions: evidence from Gulf Cooperative Council economies
We investigate the asymmetric nonlinear link between foreign direct investment, oil prices, and CO2 emissions for the Gulf Cooperation Council nations, using foreign direct investment and oil price data. As foreign direct investment is positively associated with carbon emissions in the long run and...
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| Format: | Article |
| Language: | English |
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Taylor & Francis Group
2022-12-01
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| Series: | Cogent Economics & Finance |
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| Online Access: | https://www.tandfonline.com/doi/10.1080/23322039.2022.2080316 |
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| author | Sania Ashraf Jithin P Zaghum Umar |
| author_facet | Sania Ashraf Jithin P Zaghum Umar |
| author_sort | Sania Ashraf |
| collection | DOAJ |
| description | We investigate the asymmetric nonlinear link between foreign direct investment, oil prices, and CO2 emissions for the Gulf Cooperation Council nations, using foreign direct investment and oil price data. As foreign direct investment is positively associated with carbon emissions in the long run and oil prices have positive, significant effects on CO2 emissions, our findings support the pollution-haven hypothesis. Furthermore, these variables have an asymmetric nonlinear relationship, which corresponds to the theoretical expectations of the pollution-haven hypothesis. We also find that negative changes in foreign direct investment have positive, significant impacts on carbon emissions in the short run, implying that foreign enterprises utilize green technologies in their manufacturing processes in the short run. In the long run, however, negative changes in oil prices are positively associated with carbon emissions. These findings should help Gulf Cooperation Council economies focus on policies that encourage foreign direct investment in green rather than dirty industries in order to ensure environmental sustainability. |
| format | Article |
| id | doaj-art-229f12c6f2e74c529db89ecdb381f7da |
| institution | DOAJ |
| issn | 2332-2039 |
| language | English |
| publishDate | 2022-12-01 |
| publisher | Taylor & Francis Group |
| record_format | Article |
| series | Cogent Economics & Finance |
| spelling | doaj-art-229f12c6f2e74c529db89ecdb381f7da2025-08-20T03:21:46ZengTaylor & Francis GroupCogent Economics & Finance2332-20392022-12-0110110.1080/23322039.2022.2080316The asymmetric relationship between foreign direct investment, oil prices and carbon emissions: evidence from Gulf Cooperative Council economiesSania Ashraf0Jithin P1Zaghum Umar2College of Business, Abu Dhabi University, Abu Dhabi UAEDepartment of Economics, Christ University, Bangalore, IndiaCollege of Business, Zayed University, UAEWe investigate the asymmetric nonlinear link between foreign direct investment, oil prices, and CO2 emissions for the Gulf Cooperation Council nations, using foreign direct investment and oil price data. As foreign direct investment is positively associated with carbon emissions in the long run and oil prices have positive, significant effects on CO2 emissions, our findings support the pollution-haven hypothesis. Furthermore, these variables have an asymmetric nonlinear relationship, which corresponds to the theoretical expectations of the pollution-haven hypothesis. We also find that negative changes in foreign direct investment have positive, significant impacts on carbon emissions in the short run, implying that foreign enterprises utilize green technologies in their manufacturing processes in the short run. In the long run, however, negative changes in oil prices are positively associated with carbon emissions. These findings should help Gulf Cooperation Council economies focus on policies that encourage foreign direct investment in green rather than dirty industries in order to ensure environmental sustainability.https://www.tandfonline.com/doi/10.1080/23322039.2022.2080316Asymmetrycarbon emissionssustainabilitygreen industryF1F3 |
| spellingShingle | Sania Ashraf Jithin P Zaghum Umar The asymmetric relationship between foreign direct investment, oil prices and carbon emissions: evidence from Gulf Cooperative Council economies Cogent Economics & Finance Asymmetry carbon emissions sustainability green industry F1 F3 |
| title | The asymmetric relationship between foreign direct investment, oil prices and carbon emissions: evidence from Gulf Cooperative Council economies |
| title_full | The asymmetric relationship between foreign direct investment, oil prices and carbon emissions: evidence from Gulf Cooperative Council economies |
| title_fullStr | The asymmetric relationship between foreign direct investment, oil prices and carbon emissions: evidence from Gulf Cooperative Council economies |
| title_full_unstemmed | The asymmetric relationship between foreign direct investment, oil prices and carbon emissions: evidence from Gulf Cooperative Council economies |
| title_short | The asymmetric relationship between foreign direct investment, oil prices and carbon emissions: evidence from Gulf Cooperative Council economies |
| title_sort | asymmetric relationship between foreign direct investment oil prices and carbon emissions evidence from gulf cooperative council economies |
| topic | Asymmetry carbon emissions sustainability green industry F1 F3 |
| url | https://www.tandfonline.com/doi/10.1080/23322039.2022.2080316 |
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