The Dynamic Interrelationship of Environmental Factors and Foreign Direct Investment: Dynamic Panel Data Analysis and New Evidence from the Globe
Table 1
The effects of renewable energy consumption, economic growth, and FDI on carbon dioxide emission.
Dependent variable
(OLS)
(FE)
(GMM)
(SGMM)
Carbon emission
Model 1
Model 2
Model 3
Model 4
Renewable energy
−0.344
−0.103
−0.065
−0.013
(0.015)
(0.012)
(0.008)
(0.002)
Foreign direct invest
−0.042
0.017
0.001
−0.007
(0.016)
(0.005)
(0.001)
(0.001)
L. GDP per capita
0.082
0.011
0.003
0.010
(0.020)
(0.005)
(0.000)
(0.000)
Urban population
0.899
0.980
0.779
0.031
(0.015)
(0.052)
(0.026)
(0.005)
Trade openness
−0.240
−0.257
−0.148
−0.019
(0.072)
(0.057)
(0.022)
(0.009)
Govt. expenditure
0.236
0.045
0.019
−0.026
(0.054)
(0.027)
(0.006)
(0.005)
CDOit-1
0.336
0.960
(0.010)
(0.005)
Constant
−9.712
−6.347
−0.124
(0.334)
(0.721)
(0.072)
Observations
1,141
1,141
758
1,141
R-squared
0.926
0.575
Number of id
147
133
147
AR(1)
−3.33 (0.014)
−0.167 (0.096)
AR(2)
826.07 (0.023)
−4.87 (0.015)
Sargan test
−0.60 (0.546)
883.65 (0.013)
Note. OLS is ordinary least square, FE, GMM, and SGMM are the fixed effect, generalized method of moments, and system generalized method of moments, respectively. The standard error is shown in parenthesis, and the significance level is shown by ,, and at 1, 5, and 10%, respectively. AR1 and AR2 are the Arellano and Bond tests.
