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Exploring the Nexus Among FDI Inflows, Environmental Quality, Human Capital, and Economic Growth in the Mediterranean Region

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Abstract

This article investigates the links between FDI inflows, environmental quality, human capital, and economic growth in the Mediterranean region for the period of 1990–2013. Using both dynamic OLS and fully modified OLS methods, we find that (i) there is bidirectional causality between economic growth, FDI inflows, CO2 emissions, and human capital for all the considered panels, except in the Euro and Asian Mediterranean countries panel there is a unidirectional causality from FDI inflows to human capital as well as from human capital to FDI inflows; (ii) with the exception of the African Mediterranean countries panel, there is unidirectional causality running from GDP to FDI inflows as well as from GDP to human capital, from FDI to human capital, and from human capital to CO2 emissions. These empirical insights are of particular interest to policymakers to build sound policies to promote economic growth and improving environmental quality.

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Authors and Affiliations

  1. Faculty of Economics and Management of Sfax, University of Sfax, Université de Route de l’Aéroport Km 0.5, BP 1169, 3029, Sfax, Tunisia

    Mohamed Abdouli

  2. Department of Business Administration, College of Business and Economics, Qassim University, P.O. Box 6640, Buraidah, 51452, Saudi Arabia

    Anis Omri

  3. Department of Economics, Faculty of Economics and Management of Nabeul, Carthage University, Avenue de la République, AMILCAR, P.O. Box 77, 1054, Tunis, Tunisia

    Anis Omri

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Abdouli, M., Omri, A. Exploring the Nexus Among FDI Inflows, Environmental Quality, Human Capital, and Economic Growth in the Mediterranean Region. J Knowl Econ 12, 788–810 (2021). https://doi.org/10.1007/s13132-020-00641-5

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