Through the ARDL Approach: Is There a Nexus Between Renewable Energy Consumption, Economic Growth, and Foreign Direct Investment in the Moroccan Context?

Yahya Fikri (), Randa Talaat, Ahmad Shaheen, Ahmed Hassan and Abdullah Khataan
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Yahya Fikri: Research Laboratory of Governance and Organizations Performance (LRGPO), Department of Governance and Organizations Performance, National School of Business and Management Tangier, Abdelmalek Essaadi University, Tetouan 93000, Morocco
Randa Talaat: College of Management and Technology, Arab Academy for Science, Technology and Maritime, Alexandria P.O. Box 1029, Egypt
Ahmad Shaheen: College of Management and Technology, Arab Academy for Science, Technology and Maritime, Alexandria P.O. Box 1029, Egypt
Ahmed Hassan: College of Management and Technology, Arab Academy for Science, Technology and Maritime, Alexandria P.O. Box 1029, Egypt
Abdullah Khataan: College of Management and Technology, Arab Academy for Science, Technology and Maritime, Alexandria P.O. Box 1029, Egypt

Sustainability, 2025, vol. 17, issue 21, 1-20

Abstract: Empirical research has revealed conflicting associations between dependent and independent variables, with few studies tackling the dynamics in developing economies. This study investigates the effects of carbon dioxide emissions, renewable energy consumption (REC), foreign direct investment (FDI), government green capital spending (GGCS), and economic growth (EG) in Morocco, employing the Keynesian framework of economic growth. An autoregressive distributed lag (ARDL) methodology was applied to assess both short- and long-term relationships among the model’s variables, using annual data from the World Development Indicators (WDI) database for the period 1993–2020. All ARDL variables were transformed into first differences to ensure stationarity. The bounds test confirmed a long-term equilibrium relationship between the dependent and independent variables. Diagnostic tests, including the White test, indicated no evidence of heteroscedasticity, and the Shapiro–Wilk test confirmed that residuals followed a normal distribution, validating model robustness. The model demonstrated overall stability across the study period with no structural breaks. The empirical findings suggest that both carbon dioxide emissions and renewable energy consumption exhibit positive trends, whereas GGCS demonstrates a significant short-run negative correlation with economic growth. However, the long-term coefficients were found to be statistically insignificant, suggesting that sustained policy effects may be attenuated by macroeconomic structural factors.

Keywords: ARDL approach; renewable energy consumption; general government consumption spending; economic growth; Morocco; foreign direct investment; carbon dioxide emissions (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
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