Foreign direct investment inflow, economic growth, energy consumption, globalization, and carbon dioxide emission around the world.

Abstract

This study for the first time examined the link of foreign direct investment inflow, globalization, energy consumption, economic growth, export of fuel resources, and export of ore and metal resources with carbon dioxide emission in 170 countries around the world by using panel data from 1990 to 2018. The examined results of GMM and fixed effect model show that greenhouse gas emissions reduce due to exports of natural resources, export of fuel resources and export of ore and metal resources, urbanization, economic globalization, and political globalization, but the use of energy, social globalization, foreign direct investment, and economic growth have boosted the carbon dioxide emissions. This study suggests that policy makers should focus to implement environment-friendly equipment to reduce carbon dioxide emissions.