The relationship between economic growth, population, FDI, globalization, and CO2 emissions in OIC member countries

Abstract

The concentration of CO2 emissions in OIC member countries has decreased over the past decade, the theory of sustainable growth reveals that an increase in the concentration of CO2 emissions can be influenced by various factors such as an increase in the economy, population, FDI, and globalization and vice versa. However, economic growth, population, FDI, and globalization in OIC member countries show an increase, so this fact seems to contradict the sustainable growth theory. Therefore, this study aims to test and analyse the effect of economic growth, population, FDI and globalization on the concentration of CO2 emissions in OIC member countries. This research is a quantitative research. The data analysed are data on economic growth, population, FDI, globalization index, economic globalization, political globalization, and social globalization for 53 OIC member countries in the period 1992 to 2020 obtained from various data sources such as the World Bank, UNTCAD, and KOF Index of Globalization. The data analysis technique used is the GMM system. The results of this study indicate that economic growth and FDI have a positive and significant effect on the concentration of CO2 emissions. While population and globalization show a negative influence on the concentration of CO2 emissions in OIC member countries.