A NEW LOOK AT THE REMITTANCES-FDI- ENERGY-ENVIRONMENT NEXUS IN THE CASE OF SELECTED ASIAN NATIONS

Abstract

This study investigates the association between remittances, FDI, energy use, and CO2 emissions for a sample of the top six Asian nations receiving remittances, namely, China, India, the Philippines, Pakistan, Bangladesh, and Sri Lanka, during the 1982–2014 period. The results of employing an autoregressive distributed lag (ARDL)-bound technique signify that there is a stable long-run association among the stated variables. The empirical findings indicate that CO2 increases significantly with a rise in energy use in all sample nations in both the long and short-runs. Conversely, the association between CO2 emissions and remittances is found to be significantly positive for Sri Lanka, Pakistan, the Philippines, and Bangladesh in the long-run, positive for Pakistan, the Philippines, and Sri Lanka only in the short-term, and non-significant for India and China in both the long and short-runs. Furthermore, the empirical results illustrate that the inflow of FDI significantly increases CO2 emissions in the cases of China, Sri Lanka, and India in both the long and short-runs. While FDI inflow has no significant effect on CO2 emissions for the Philippines and Pakistan, it has a significant negative effect for Bangladesh in both the long and short-runs. Thus, the connection between remittances, FDI, and CO2 emissions varies significantly across the countries considered in our study.