Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/328499 
Year of Publication: 
2022
Citation: 
[Journal:] Economies [ISSN:] 2227-7099 [Volume:] 10 [Issue:] 8 [Article No.:] 199 [Year:] 2022 [Pages:] 1-14
Publisher: 
MDPI, Basel
Abstract: 
Developed countries have the resources/technologies to combat pollution even at the expense of economic growth. Developing countries are in a less fortunate position. Foreign Direct Investment (FDI) can be a tool for developed countries to transfer polluting industries, which increases pollution in host countries. However, as FDI might reduce pollution by reducing energy consumption, the pollutant effect might also be influenced. Therefore, this study examines the mediating effect of energy consumption on the impact of FDI on pollution, and the role of FDI to attain Green Growth via energy transition. The main findings indicate that FDI impacts pollution through energy consumption and that energy transition plays a vital role in reducing this mediating effect. Developing countries appear to use non-renewable energy to fill energy demand. In both groups of countries, FDI is a driver of Green Growth. However, developing countries require larger efforts to achieve Green Growth through the energy transition.
Subjects: 
energy transition
Foreign Direct Investment
Green Growth
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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