The Dynamic Interrelationship of Environmental Factors and Foreign Direct Investment: Dynamic Panel Data Analysis and New Evidence from the Globe
Table 3
The effect of carbon dioxide emission and renewable energy consumption on foreign direct investment.
Dependent variable
(OLS)
(FE)
(GMM)
(SGMM)
Foreign direct investment
Model 1
Model 2
Model 3
Model 4
Carbon emission
−0.155
0.669
0.530
−0.088
(0.053)
(0.187)
(0.040)
(0.008)
Renewable energy
−0.115
−0.167
−0.121
−0.104
(0.033)
(0.075)
(0.033)
(0.010)
L. GDP per capita
0.200
0.156
0.074
0.084
(0.036)
(0.031)
(0.005)
(0.003)
Urban population
−0.027
1.035
0.005
0.011
(0.054)
(0.365)
(0.148)
(0.010)
Trade openness
0.389
0.848
0.371
−0.036
(0.131)
(0.349)
(0.077)
(0.040)
Govt. expenditure
−0.186
−0.251
−0.296
−0.191
(0.097)
(0.166)
(0.043)
(0.016)
FDIit-1
0.139
0.536
(0.006)
(0.004)
Constant
−3.022
−24.42
−0.418
(0.787)
(4.425)
(0.172)
Observations
1,141
1,141
739
1,107
R-squared
0.244
0.153
Number of id
147
131
147
AR(1)
−3.28 (0.001)
−3.58 (0.000)
AR(2)
0.65 (0.516)
1.09 (0.276)
Sargan test
778.47 (0.202)
818.86 (0.475)
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.
