Nexus between globalization, energy consumption and globalization in belt and road countries
School of Business and Economics, United International University, Dhaka, Bangladesh.
Research Article
GSC Advanced Research and Reviews, 2022, 12(03), 033–050.
Article DOI: 10.30574/gscarr.2022.12.3.0227
Publication history:
Received on 25 July 2022; revised on 01 September 2022; accepted on 03 September 2022
Abstract:
This research evaluates the effects of FDI, economic growth, and globalization on E.D. in a sample of Belt and Road Initiative (BRI) countries from 2000 to 2020. Various techniques, including the Westerlund cointegration test, the Dynamic seemingly unrelated regression (DSUR) long-run panel estimate methodology, and the Dumitrescu-Hurlin panel causality test, are used to collect data for the investigation. After initial difference and long-run association documents have been analyzed using conventional and error-correcting techniques, panel unit root tests indicate which variables are hidden where and why. DSUR revealed a positive correlation between long-term energy use and environmental degradation, meaning that increased energy consumption and production will aggravate the existing state of environmental deterioration. Foreign direct investment (FDI), financial growth, and globalization are more beneficial to the global economy than detrimental to the environment. In addition to the unidirectional effects of financial development, globalization, and economic growth on environmental degradation, directional causality investigations reveal the existence of a feedback hypothesis that helps to explain these causal links. This study highlights the need of Belt and Road (B.R.) energy measures to enhance energy efficiency.
Keywords:
Environmental Degradation; Energy Consumption; FDI; Financial Development; DSUR; Belt
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