The Impact of Globalization and China's Foreign Direct Investment in South Asian Countries on Carbon Dioxide Emission

Abstract

The world is currently confronted with a growing challenge in the form of CO2 and climate change, which pose grave risks to human lives worldwide. This article attempts to investigate the nexus between CO2 emission, FDI, and Globalization for the period of2003 to 2018 in south Asian countries. This study enables policymakers to devise and execute policies to decrease CO2 emissions in the future. We use panel data techniques to investigate the determinants of CO2 emissions over the world. Our finding shows Globalization,GDP, CO2 emissions are influenced positively and significantly by financial development and energy consumption. Trade openness and FDI have a positive relationship with CO2 emission, While social Globalization has a negative impact on carbon emission. This articlehas key policy implications. Policymakers should formulate policies to provide incentives to their citizen to decline CO2 emissions in the world.