The Dynamic Interrelationship of Environmental Factors and Foreign Direct Investment: Dynamic Panel Data Analysis and New Evidence from the Globe
Table 4
The effect of carbon dioxide emission, renewable energy consumption, and foreign direct investment on economic growth.
Dependent variable
(OLS)
(FE)
(GMM)
(SGMM)
Economic growth
Model 1
Model 2
Model 3
Model 4
Carbon emission
0.071
0.283
0.254
0.026
(0.027)
(0.129)
(0.065)
(0.000)
Renewable energy
−0.010
−0.158
−0.133
−0.029
(0.021)
(0.060)
(0.019)
(8.190)
Foreign direct investment
0.131
0.123
0.0721
0.063
(0.018)
(0.022)
(0.005)
(1.280)
Urban population
−0.096
−0.461
−1.376
−0.003
(0.034)
(0.218)
(0.143)
(0.000)
Trade openness
0.000
0.000
0.003
0.000
(0.000)
(0.001)
(0.000)
(3.340)
Govt. expenditure
−0.401
−0.259
−0.193
−0.364
(0.061)
(0.115)
(0.062)
(7.25−)
GDPPCit-1
−0.03
0.215
(0.005)
(1.810)
Constant
2.226
6.011
1.123
(0.342)
(2.601)
(0.002)
Observations
1,586
1,586
879
1,342
R-squared
0.078
0.039
Number of id
156
134
156
Sargan test
1054.31 (0.10)
1053.1 (0.1001)
AR1
−3.99 (0.00)
−4.29 (0.00)
AR2
−0.28 (0.78)
0.07 (0.28)
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 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.
