The asymmetric relationship between foreign direct investment, oil prices and carbon emissions: evidence from Gulf Cooperative Council economies
- Title
- The asymmetric relationship between foreign direct investment, oil prices and carbon emissions: evidence from Gulf Cooperative Council economies
- Creator
- Ashraf S.; P J.; Umar Z.
- 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. 2022 The Author(s). This open access article is distributed under a Creative Commons Attribution (CC-BY) 4.0 license.
- Source
- Cogent Economics and Finance, Vol-10, No. 1
- Date
- 2022-01-01
- Publisher
- Cogent OA
- Subject
- Asymmetry; carbon emissions; F1; F3; G2; G3; green industry; sustainability
- Coverage
- Ashraf S., College of Business, Abu Dhabi University, Abu Dhabi, United Arab Emirates; P J., Department of Economics, Christ University, Bangalore, India; Umar Z., College of Business, Zayed University, United Arab Emirates
- Rights
- All Open Access; Gold Open Access
- Relation
- ISSN: 23322039
- Format
- Online
- Language
- English
- Type
- Article
Collection
Citation
Ashraf S.; P J.; Umar Z., “The asymmetric relationship between foreign direct investment, oil prices and carbon emissions: evidence from Gulf Cooperative Council economies,” CHRIST (Deemed To Be University) Institutional Repository, accessed February 25, 2025, https://archives.christuniversity.in/items/show/15384.