Suchergebnisse

By pooling a sample of 25 countries spanning from 1990–2017, this study analyzed the relationship between external debt accumulation and foreign direct investment inflows in Sub-Saharan Africa. The study employed Panel fixed effects and the Generalized Method of Moments estimation technique in order to address the potential issue of endogeneity. The results of the fixed effects and GMM analysis revealed a significant negative relationship between external debt accumulation and FDI inflows in SSA region. However, when external debt was interacted with macroeconomic variables such as corporate tax, infrastructure development, economic growth and military expenditure, the result shows a positive interaction effect between external debt and infrastructure development on FDI suggesting that external debt can positively influence FDI if channeled into the provision of critical infrastructures. On the other hand, the interaction effect of corporate tax showed a negative relationship between external debt and FDI and provided strong support for the debt overhang theory by Krugman which holds true in SSA region. Finally, economic growth and military expenditure also showed a negative interaction effect.

AbstractThe relevance of environmental sustainability has grown significantly among academics, professionals, and the general public. A variety of factors influence an economy's ability to support its environmental sustainability. Foreign direct investment (FDI), financial development (FD), green technological innovation (GTI), and green finance (GF) are pillars that hold the key to accomplishing sustainability goals. Despite extensive studies on the factors influencing green finance, there remains a gap in grasping the impact of green finance and various investment factors on environmental sustainability. The study's objective is to analyze the relationship between ecological sustainability, green financing, FDI, innovative green technologies, and FD in developing countries. The study employed a fixed effect and random effect model with robustness analysis to gain an empirical understanding of the relationship. The findings highlighted that green finance plays a crucial role in green technologies and encourages economies to embrace sustainability. It also supports the pollution haven hypothesis (PHH) and the understanding that an increase in FDI has a positive relationship with carbon emission. The study makes a significant novel contribution by analyzing the combined influence of financial and green technological development on environmental sustainability. The numerous theoretical and practical implications for addressing the constraints posed by the PHH include tightening domestic legislation, developing international cooperation, and pushing the adoption of cleaner technology throughout industries. It helps governments enact effective environmental regulations to encourage green investment and technological innovation to have a beneficial knock‐on effect on cutting ecological sustainability.