Variance Decomposition of Emissions, FDI, Growth and Imports in GCC countries: A Macroeconomic Analysis

Abstract

This paper provides an empirical evidence of the variance decomposition of carbon dioxide emissions, FDI inflows, GDP per capita and imports in GCC countries; UAE, Bahrain, Saudi Arabia, Oman, Qatar and Kuwait. The method adopted is based on the Vector Error Correction Model (VECM). It examined a 256 observation for the duration 2000 – 2010. We found that FDI inflows have a significant variance to GDP. And the increase of level of carbon dioxide emissions is highly related to FDI and commodity imports in which GCC economies have not taken into account in their environmental consideration. The study is valuable for organizations and government policy-makers given that the importance of industry engagement for organizational outcomes has been confirmed. Correspondingly, significant implications for organizations exist, as they are aware of which parts of their operations and conditions will drive relevant talent to engage in the organizations’ work. This paper provides an empirical evidence of the variance decomposition of carbon dioxide emissions, FDI inflows, GDP per capita and imports in GCC countries; UAE, Bahrain, Saudi Arabia, Oman, Qatar and Kuwait. The method adopted is based on the Vector Error Correction Model (VECM). It examined a 256 observation for the duration 2000 – 2010. We found that FDI inflows have a significant variance to GDP. And the increase of level of carbon dioxide emissions is highly related to FDI and commodity imports in which GCC economies have not taken into account in their environmental consideration. This paper provides an empirical evidence of the variance decomposition of carbon dioxide emissions, FDI inflows, GDP per capita and imports in GCC countries; UAE, Bahrain, Saudi Arabia, Oman, Qatar and Kuwait. The method adopted is based on the Vector Error Correction Model (VECM). It examined a 256 observation for the duration 2000 – 2010. We found that FDI inflows have a significant variance to GDP. And the increase of level of carbon dioxide emissions is highly related to FDI and commodity imports in which GCC economies have not taken into account in their environmental consideration.