Relationship between FDI inflows, governance quality and CO2
| GMM model | |
|---|---|
| Carbon emissions per capita (t−1) | 0.541* (0.000) |
| Urban population | 0.573** (0.013) |
| Exportation (% of GDP) | 0.012 (0.879) |
| Gross domestic product per capita (annual growth) | 0.152** (0.013) |
| Domestic private credit | −0.039 (0.763) |
| Foreign direct investment inflows (% of GDP) | −0.683* (0.000) |
| Government effectiveness | −0.680 (0.888) |
| Foreign direct investment*Government effectiveness | −0.653* (0.000) |
| Constant | −6.621 (0.430) |
| AR (1) | −2.1699** (0.0300) |
| AR (2) | −0.61079 (0.5413) |
| Sargan test | 66.99783 (0.1102) |
| GMM model | |
|---|---|
| Carbon emissions per capita (t−1) | 0.541* (0.000) |
| Urban population | 0.573** (0.013) |
| Exportation (% of GDP) | 0.012 (0.879) |
| Gross domestic product per capita (annual growth) | 0.152** (0.013) |
| Domestic private credit | −0.039 (0.763) |
| Foreign direct investment inflows (% of GDP) | −0.683* (0.000) |
| Government effectiveness | −0.680 (0.888) |
| Foreign direct investment*Government effectiveness | −0.653* (0.000) |
| Constant | −6.621 (0.430) |
| AR (1) | −2.1699** (0.0300) |
| AR (2) | −0.61079 (0.5413) |
| Sargan test | 66.99783 (0.1102) |
Note(s): AR (1) and AR (2) are the first- and the second-order autocorrelation of residuals. *, ** and *** show, respectively, the significance at 1, 5 and 10% level. Sargan test is the over-identifying restrictions test
Source(s): Authors
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