Analysis of the impact of foreign direct investment and trade liberalization In the quality of the environment and the use of clean energies: Study of selected developing countries

Foreign direct investment and increasing the volume of trade is known as a suitable source for capital accumulation and promotion of economic growth in developing countries. On the other hand, there is also the possibility that with the increase in economic growth and scale of production and as a result of energy consumption, environmental destruction will become more visible in these countries. For this reason, this research examines the effect of foreign direct investment and trade liberalization on carbon dioxide emissions and the use of clean energy in selected developing countries during the period 1971 to 2014 using the ARDL panel approach. The findings of this research show that despite the positive and significant effect of foreign direct investment on the use of clean energy and economic growth, this variable has not had a significant effect on the destruction of the environment in the studied countries. On the other hand, the results showed that trade liberalization has a positive and significant relationship with carbon dioxide emissions, while this variable has a negative and significant effect on clean energy consumption. Finally, the results of the study indicate that the speed of adjustment towards long-term equilibrium in this model is relatively slow