Abstract:
Foreign Direct Investments (FDI) and Technological Advancements (TA) are
significant driving forces of economic growth. However, the consequences of the FDI
and TA on the environment remain controversial due to the contradictory findings of
the empirical studies. Therefore, this study examined the short-run and long-run
impacts of FDI and TA on the Carbon Emissions (CO2) of South Asian countries. The
sample consisted of six South Asian countries and data were collected for 19 years
from 2000 to 2018. The three-panel ARDL models namely, Pooled Mean Group
(PMG), Mean Group (MG), and Dynamic Fixed Effect (DFE) estimations were used
as main panel data analysis tools. The findings indicated that the rapid advancement
of technology and the rise in foreign direct investment (FDI) contribute to a rise in long term CO2. However, there is no noteworthy relationship between CO2 and FDI or TA)in
the short term. The main findings of this research deliver key policy directions for
South Asian nations to consider. The conclusions demonstrate and emphasize the
significance of establishing policy frameworks and guidelines for the elimination or
effective management of CO2emission. Additionally, this study suggests the need for
greater investment in research and development of technological innovations aimed
at reducing CO2. Furthermore, it highlights the importance of adopting a unified policy
stance to achieve long-term sustainable development goals within the region.
