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The relationship amongst energy consumption, foreign direct investment and output in developed and developing Countries

Fethi Amri

Renewable and Sustainable Energy Reviews, 2016, vol. 64, issue C, 694-702

Abstract: The current study inspects the nexus amongst energy consumption, FDI inflows and output in 75 countries meantime the period 1990–2010. We further examine this relationship with regard to developed as well as developing countries assembled from diverse geographic regions from the world. The present results display that there is proof of bidirectional linkage concerning FDI and output per capita, concerning renewable energy consumption and gross domestic product per capita and concerning non-renewable energy and gross domestic product per capita in the three groups of countries (developed, all, and developing). In addition, the judgments detect a bidirectional linkage concerning renewable energy consumption and FDI in developed countries. An increase of 1% rate in renewable energy participates to improving FDI by 0.185 % and at the same time an increase of FDI contributes to enhancing renewable energy by 0.292%. Nevertheless, in the case of all and developing countries, the results discover unidirectional link moving from foreign inflows to both sorts of energy. In conclusion, the policy recommendations of our empirical results are taken into consideration.

Keywords: Renewable energy consumption; Non-renewable energy consumption; Foreign direct investment; Economic growth; Developed countries; Developing countries (search for similar items in EconPapers)
Date: 2016
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Handle: RePEc:eee:rensus:v:64:y:2016:i:c:p:694-702