The Repercussions of Economic Growth, Industrialization, Foreign Direct Investment, and Technology on Municipal Solid Waste: Evidence from OECD Economies

Abstract

The paper’s main objective is to evaluate the repercussions of economic growth, industrialization, and foreign direct investment (FDI) on OECD (Organization for Economic Cooperation and Development) municipal solid waste (MSW) from 2000–2020. Further study includes the role of technology in managing waste activities’ repercussions. We also explore the mediation impact of technology and industrialization with economic growth on the waste of OECD economies. The empirical assessment is carried out in two ways. First, we use graphs to assess the evolution over the years and their association with the core factors. Second, we apply a proper econometrics series to examine the empirical nexuses between the relevant factors. The study finds that economic growth and industrialization evolve over time, increasing the waste of OECD economies. FDI inflow is unfavorable and increases waste production. However, the magnitude impact of FDI is lower than that of economic growth and industrialization. Technological advancement (research and development) is a significant factor in reducing waste generation. The later phase of economic growth is still not advantageous to reduce waste generation in the OECD. The OECD needs to manage industrialization and economic activities through a proper mechanism and tax on such activities that can increase unwanted waste. Further, through technology, the management of waste can be improved.