 Testing for Granger causality between energy use and foreign direct investment Inflows in developing countriesHoda Hassaballa Renewable and Sustainable Energy Reviews, 2014, vol. 31, issue C, 417-426 Abstract: Foreign direct investment inflows (FDI) and emissions exhibit a two way relationship. In particular, this research studies the relationship between FDI inflows and emissions from energy use in developing countries. This is done through conducting a Granger causality test on the direction of the relationship between FDI inflows and energy use. For that, a fixed effect panel data model with heterogeneous slopes is used. Heterogeneous slopes specification is selected to account for individual differences within countries. Error correction model is the chosen estimation approach. The empirical results highlight the presence of a two way relationship between FDI inflows and emissions from energy use when testing for short and long run effects jointly. However, this result varies when testing for no long run effect within individual countries. Policy implications for developing countries are also given. Keywords: Foreign direct investment; Pollution; Energy use; Error correction model; Developing countries and Granger causality test (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:rensus:v:31:y:2014:i:c:p:417-426 Ordering information: This journal article can be ordered from DOI: 10.1016/j.rser.2013.12.011 Access Statistics for this article Renewable and Sustainable Energy Reviews is currently edited by L. Kazmerski More articles in Renewable and Sustainable Energy Reviews from Elsevier |
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