The effects of foreign direct investment on environmentally related technologies in Latin America

Research output: Contribution to journalArticlepeer-review

4 Citations (Scopus)

Abstract

This research investigates the environmental impact of foreign financial inflows directed towards the development of environmental technologies and the transition from fossil fuel to renewable resources. The study focuses on the load capacity factor and ecological footprint as indicators, examining data spanning from 1990 to 2022 across 17 Latin American countries. The analysis employs a STIRPAT model as a starting point and employs second-generation estimation methods. Additionally, panel causality tests proposed by Dumitrescu and Hurlin are utilized to explore the causal relationships among the variables. The findings of this study indicate that foreign direct investment (FDI) in Latin America does not result in pollution, with particular significance observed in mitigating the ecological footprint. The interaction between FDI and environmental technologies demonstrates minimal impact on environmental quality. Conversely, the adoption and adaptation of renewable infrastructure in Latin America's transition toward green economies positively affect environmental sustainability. The study highlights the necessity and desirability of implementing measures to promote green FDI to enhance the positive effects of foreign capital investments in the development of green technologies.

Original languageEnglish
Article number104711
JournalResources Policy
Volume90
DOIs
Publication statusPublished - Mar 2024

Keywords

  • Ecological footprint
  • Environmental technologies
  • Foreign direct investment
  • Green transition
  • Load capacity factor

Fingerprint

Dive into the research topics of 'The effects of foreign direct investment on environmentally related technologies in Latin America'. Together they form a unique fingerprint.

Cite this