Understanding the dynamics of carbon emissions through the lenses of FDI, remittances, and economic growth in globalised India

Poonam Arya, Ravinder Verma and Harsh Saini

International Journal of Trade and Global Markets, 2026, vol. 22, issue 2, 202-222

Abstract: Climate change represents a serious and potentially permanent threat to human life and the environment. This study investigates foreign direct investment (FDI), remittances (PR), and economic growth (GDP) to understand the dynamics of carbon emissions (CO2 emissions) in globalised India from 1991 to 2020 by employing the autoregressive distributed lag (ARDL) model. The results reported that all the sample variables FDI, PR, and GDP positively and significantly affect CO2 emissions in India in the short run. In the long run, the effect of PR, GDP, and FDI has been found insignificant on CO2 emissions. The study recommends that India should redesign its environment-friendly policies and encourage foreign investors to keep environmental issues like carbon emissions in mind while investing and transferring technology.

Keywords: ARDL; carbon emissions; FDI; foreign direct investment; remittances; GDP. (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:ids:ijtrgm:v:22:y:2026:i:2:p:202-222

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