Associate Professor Xiaohang Ren, a researcher of the Base, has published a collaborative paper titled "Do FDI inflows bring both capital and CO2 emissions? Evidence from non-parametric modelling for the G7 countries" in International Review of Economics and Finance.

IREF is committed to publishing theoretical and empirical articles in the fields of international, macro and financial economics.

Abstract: Foreign direct investment profoundly influences environmental conditions while promoting economic growth. This study examines the effects of FDI on CO2 emissions across the G7 countries from 1971 to 2020. Utilizing panel data, we employ a local linear dummy variable estimation method to analyze the non-linear and time-varying relationships between FDI and CO2 emissions. Our findings reveal a negative correlation between FDI and CO2 emissions during the period 1971–1995. In contrast, from 2000 to 2015, a significant positive correlation is observed. After 2015, no significant relationship is detected. Furthermore, we investigate the moderating effect of trade openness, urbanization level, and energy consumption to gain a deeper understanding of how the relationship between FDI and CO2 emissions is influenced under different national contexts. These findings underscore the dynamic nature of the relationship between FDI and CO2 emissions, offering significant implications for the advancement of a low-carbon economy.

Keywords: FDI, CO2 emissions, Non-parametric, LLDVE

Link：https://doi.org/10.1016/j.iref.2024.103420

Teacher profile

Xiaohang Ren is a specially appointed associate professor at the Business School of Central South University, a highly cited Chinese scholar of Elsevier, and a top 2% scientist in the world. He mainly focuses on research in energy finance, financial risks, and financial measurement. He has published more than 100 papers in authoritative domestic and foreign journals such as Journal of the American Statistical Association, Transportation Research Part A, Energy Economics, Quantitative Finance, Review of Quantitative Finance and Accounting, International Review of Financial Analysis, Technological Forecasting and Social Change, Business Strategy and the Environment, Pacific-Basin Finance Journal, Applied Energy, Resources Policy, Renewable & Sustainable Energy Review, Energy, Journal of Management Sciences in China (English Edition), Systems Engineering - Theory & Practice, and Chinese Journal of Management Science. Among them, more than 30 papers are ESI hot articles or highly cited papers. He serves as the lead editor of Sustainable Communities (Taylor & Francis), associate editor of Humanities & Social Sciences Communications (the only social science and humanities journal affiliated with Nature), and guest editor of SSCI journals such as Climate Change Economics, Economic Change and Restructuring.