Determinants of sustainable FDI: a panel data investigation
ISSN: 0025-1747
Article publication date: 13 November 2019
Issue publication date: 18 May 2021
Abstract
Purpose
The purpose of this paper is twofold: to explore the interrelationships between FDI with growth and sustainability dimension; and to empirically analyze the four dimensions, namely, environmental, economic, social and governance of sustainable FDI for South Asia and West Asia.
Design/methodology/approach
The data utilized in the paper is sourced from the World Development Indicators and the Worldwide Governance Indicators, covering South and West Asian region over the period 2011–2017. The paper employed both static and dynamic panel (two-step difference generalized methods of moments) estimation methods.
Findings
The results established a significant and robust relationship of past year FDI inflows with the current year’s value of FDI inflows for both the regions. Further, some variances in the relationships such as control of corruption, long-run carbon emissions, research and development, number of trademark applications as per the contextual factors have been detected.
Research limitations/implications
The conclusions related to gender and governance found in this paper will be of interest to both researchers and policy makers for substantially reorienting the sustainability attributes to the foreign investment.
Originality/value
The authors’ main contributions are: to encapsulate the conceptual framework into an empirical model by combining all the four dimensions, namely, environmental, economic, social and governance; to have analyzed the possible differences and similarities in the study based on South and West Asia; to have explored the relationship between gender and FDI.
Keywords
Acknowledgements
This paper forms part of a special section “Managing the Trilogy of Business, Economy, and Environment”, guest edited by Samik Shome, Deepak Danak, Parag Rijwani and Ashish Chandra.
Citation
Kapuria, C. and Singh, N. (2021), "Determinants of sustainable FDI: a panel data investigation", Management Decision, Vol. 59 No. 4, pp. 877-911. https://doi.org/10.1108/MD-01-2019-0064
Publisher
:Emerald Publishing Limited
Copyright © 2019, Emerald Publishing Limited