The Dynamic Links Between Environmental Quality, Foreign Direct Investment, and Economic Growth in the Middle Eastern and North African Countries (MENA Region)

Mohamed Abdouli () and Sami Hammami ()
Additional contact information
Mohamed Abdouli: Faculty of Economics and Management of Sfax
Sami Hammami: Faculty of Economics and Management of Sfax

Journal of the Knowledge Economy, 2018, vol. 9, issue 3, No 7, 833-853

Abstract: Abstract This paper investigates the relationship between foreign direct investment (FDI) inflows, economic growth, and environmental degradation. This is also the case for Middle Eastern and North African countries; we outline a dynamic simultaneous equations model over the period of 1990–2012 using the GMM approach. Our results indicate that there is evidence of bidirectional causal relationship between economic growth and FDI inflows, between economic growth and CO2 emissions, and between FDI inflows and CO2 emissions for the global panel and Middle East, with the exception of the North Africa. The existence of unidirectional causality exists from FDI inflows to CO2 emission. The study suggests that environmental and foreign policies promote economic growth in an environment without pollution and with a strong investment at the same time.

Keywords: Carbon dioxide emissions; FDI; Economic growth; Middle East; North Africa (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (14)

Downloads: (external link)
http://link.springer.com/10.1007/s13132-016-0369-5 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:jknowl:v:9:y:2018:i:3:d:10.1007_s13132-016-0369-5

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/13132

DOI: 10.1007/s13132-016-0369-5

Access Statistics for this article

Journal of the Knowledge Economy is currently edited by Elias G. Carayannis

More articles in Journal of the Knowledge Economy from Springer, Portland International Center for Management of Engineering and Technology (PICMET)
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().