Impact of green technology and energy on green economic growth: role of FDI and globalization in G7 economies
Abstract With the increase in economic growth, the world is facing serious challenges concerning environmental sustainability. Hence, the green economic growth is imperative for sustainable and inclusive development. The objective of this study is to contribute to the existing literature about the f...
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| Format: | Article |
| Language: | English |
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SpringerOpen
2024-04-01
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| Series: | Future Business Journal |
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| Online Access: | https://doi.org/10.1186/s43093-024-00329-1 |
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| author | Mohammad Jibran Gul Wani Nanthakumar Loganathan Hanaa Abdelaty Hasan Esmail |
| author_facet | Mohammad Jibran Gul Wani Nanthakumar Loganathan Hanaa Abdelaty Hasan Esmail |
| author_sort | Mohammad Jibran Gul Wani |
| collection | DOAJ |
| description | Abstract With the increase in economic growth, the world is facing serious challenges concerning environmental sustainability. Hence, the green economic growth is imperative for sustainable and inclusive development. The objective of this study is to contribute to the existing literature about the factors that influence green economic growth. The study investigates the role of green technology, green energy, foreign direct investment, and globalization on green economic growth in G7 countries. The data of the study is collected from WDI, KOF Swiss Economic Institute, and OECD database and the data period ranges from 1995 to 2020. The existence of cointegration between the variables of the study was tested by Westerlund’s (Oxford Bull Econ Stat 69(6):709–748) cointegration test. Due to the presence of cross-sectional dependency, the study employed the cross-sectional autoregressive distributed lag (CS-ARDL) method to estimate the coefficients in the long and short run. The study also used a common correlated effect—mean group (CCEMG) estimator for robustness check. The findings of the study reveal that green energy and FDI positively contribute to green economic growth in the long and short run. The green technology also contributes positively to enhance green economic growth but only in long run. To accelerate green economic growth, G7 countries should incorporate policies promoting green energy and technology, while acquiring more foreign investments to ensure a sustainable development. |
| format | Article |
| id | doaj-art-98ea7855cf0f4a39adbbb4ea3e116f99 |
| institution | Kabale University |
| issn | 2314-7202 2314-7210 |
| language | English |
| publishDate | 2024-04-01 |
| publisher | SpringerOpen |
| record_format | Article |
| series | Future Business Journal |
| spelling | doaj-art-98ea7855cf0f4a39adbbb4ea3e116f992025-08-20T03:53:46ZengSpringerOpenFuture Business Journal2314-72022314-72102024-04-0110111310.1186/s43093-024-00329-1Impact of green technology and energy on green economic growth: role of FDI and globalization in G7 economiesMohammad Jibran Gul Wani0Nanthakumar Loganathan1Hanaa Abdelaty Hasan Esmail2Azman Hashim International Business School, University Teknologi MalaysiaFaculty of Management, University Teknologi MalaysiaDepartment of Economics, Faculty of Commerce, Port Said UniversityAbstract With the increase in economic growth, the world is facing serious challenges concerning environmental sustainability. Hence, the green economic growth is imperative for sustainable and inclusive development. The objective of this study is to contribute to the existing literature about the factors that influence green economic growth. The study investigates the role of green technology, green energy, foreign direct investment, and globalization on green economic growth in G7 countries. The data of the study is collected from WDI, KOF Swiss Economic Institute, and OECD database and the data period ranges from 1995 to 2020. The existence of cointegration between the variables of the study was tested by Westerlund’s (Oxford Bull Econ Stat 69(6):709–748) cointegration test. Due to the presence of cross-sectional dependency, the study employed the cross-sectional autoregressive distributed lag (CS-ARDL) method to estimate the coefficients in the long and short run. The study also used a common correlated effect—mean group (CCEMG) estimator for robustness check. The findings of the study reveal that green energy and FDI positively contribute to green economic growth in the long and short run. The green technology also contributes positively to enhance green economic growth but only in long run. To accelerate green economic growth, G7 countries should incorporate policies promoting green energy and technology, while acquiring more foreign investments to ensure a sustainable development.https://doi.org/10.1186/s43093-024-00329-1FDIG7 economicsGreen energyGlobalization |
| spellingShingle | Mohammad Jibran Gul Wani Nanthakumar Loganathan Hanaa Abdelaty Hasan Esmail Impact of green technology and energy on green economic growth: role of FDI and globalization in G7 economies Future Business Journal FDI G7 economics Green energy Globalization |
| title | Impact of green technology and energy on green economic growth: role of FDI and globalization in G7 economies |
| title_full | Impact of green technology and energy on green economic growth: role of FDI and globalization in G7 economies |
| title_fullStr | Impact of green technology and energy on green economic growth: role of FDI and globalization in G7 economies |
| title_full_unstemmed | Impact of green technology and energy on green economic growth: role of FDI and globalization in G7 economies |
| title_short | Impact of green technology and energy on green economic growth: role of FDI and globalization in G7 economies |
| title_sort | impact of green technology and energy on green economic growth role of fdi and globalization in g7 economies |
| topic | FDI G7 economics Green energy Globalization |
| url | https://doi.org/10.1186/s43093-024-00329-1 |
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